Housing is the key to a full economic recovery. Families, businesses, and individuals are looking to the slightly improved housing market as a key to giving life back to our struggling economy. Many economists concur with the importance of having a strong recovery in the housing sector to lead us out of the morass that we have wallowed in for more than three years.
Housing is currently 15-17% of the GDP. With every 1,000 homes sold, we have created approximately 500 or more jobs. Home owners pay a large share of the taxes that go toward our schools, our infrastructure, and in providing the necessities of some government programs.
Utah is doing its part in taking advantage of the current housing market. Foreclosures are at their lowest level in the last couple of years. Home sales are up. Realty Trac has reported that Utah foreclosure filings are down 50% from 2010. That is good news for Utah. With inventories declining, prices will start to stabilize. While the numbers are improving there are still more than 400 foreclosures in Utah County on the market. This is a great time to take advantage of lower housing prices before they start to escalate.
The National Association of Realtors is calling for the banks and lenders to increase their lending to creditworthy borrowers. They have already changed their practices by making more loan modifications and expediting short sales. This will go a long way to reduce the number of REO properties for sale.
Pending sales are up. Inventory is declining. There are now fewer properties on the market than there were in 2007. Business executives are moving their businesses to Utah. We currently enjoy a below average unemployment rate. Families are flocking to Utah to take advantage of a business- friendly climate and our quality of life.
These modest improvements in our economy, jobs, and housing should encourage those who have been waiting to make that decision to buy a home. Interest rates have never been lower. The stars are all aligned for you to make an intelligent informed decision to become a homeowner. Homeownership lends stability to life. A good housing market is on its way back.