A Positive Forecast from U of U Economist

Tuesday, January 11th, 2011

Today, James Wood, the Director of the University of Utah’s Bureau of Economic and Business Research released his 2011 Salt Lake Housing Forecast.  Wood discusses each of the negative aspects of our current economy which have pushed us to such a reduced demand for homes in Salt Lake County.  He pointed to the declining number of jobs, consolidation of households, reduction of migration, increase in foreclosures, and the negative equity situations of many home owners as the causes of our current market.

After outlining the negative circumstances of our current economy, James Wood directs our attention to the best market indicators for forecasting the future of the market in Utah.  Now that prices have come down to the most affordable prices we have seen in some time, improvements in the unemployment rate (including very positive projections by the Dept. of Workforce Services), and “pent-up housing demand,” Wood predicts we will see prices stabilize considerably this year and the number of home sales will continue to increase.

While most of the forecast weighed me down with all the negative circumstances leading to our current market conditions, Wood’s final statements were positive yet realistic for the direction of our community’s future market.

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