Utah real estate

“The average American home appreciated 12 percent during 12 months ended September 30, 2005 . . . and 55.3 percent over the past five years.”

via the TeaLeaf

TeaLeaf is an economic newsletter put out by Jeff Thredgold, an economist from Utah. His company Thredgold Economic Associates provides economic data for Zions Bancorporation and here’s what they have to say about the real estate market for 2006.

“Greed-driven surges in home prices, especially on both coasts and in the Southwest, set the stage for possible weakness in 2006. A stock market analogy seems appropriate…’Bulls and Bears can make money…Pigs get slaughtered.’ We expect greater home price strength in the nation’s interior… less strength on both coasts.”

Read in full

Now, I am no real estate expert, but this is what I have suspected all along. Why? The major media organiations have been reporting all kinds of news in relation to a housing bubble, but these organizations are based on the coasts where the population is much more dense. So, do you think their coverage will cater to New York City. D.C., L.A and S.F. more or Utah, Wyoming, Missouri and other states more?

Truth is, if you talk to Utah real estate agents who work with buyers from out of state, they will tell you that they get twice the calls they were getting a few years ago from folks in places like California.

Here’s an example: “The volume of real-estate sales in Park City more than tripled to $2 billion in 2005 from $651 million in 2002.” source. TRIPLED! And guess what? This growth didn’t come from people in the state. I came from people outside of the state. And, the land is still a good deal compared to land prices in Arizona, New Mexico, California and the East coast.