In 2005 Utah experienced a 11.37 appreciation across the state. Arizona was the hottest state followed by California and Nevada. However, Utah is heating up. Saint George ranked as the 4th highest appreciating metropolitan areas in the USA out of 265 areas. Salt Lake was ranked 97th and Provo-Orem ranked 142nd. The Utah County market has been largely ignored until about May of 2005. If you carefully look at the data May is when things started getting crazy.

Agents and brokers across the county felt the large influx of out-of-state buyers discovering our market. Most agents had record commission years in 2005. About 80% of my buyers in 2005 were from a different state. These trends are continuing into 2006. I expect the market to actually accelerate. I believe Utah County will sustain a strong growth / appreciation until 2008. I predict the market will level in 2008 and return to a relatively dormant status for another several years. Buyers and sellers are feeling the first few waves of a market shift.

Bargains are still to be found. You must search much harder and work closer with one good agent. We just picked up a home for $203k that appraises for $250k. I am very impressed with the California investors. These investors are sharp. They know what they want and they don't mess around. Last year my Californian investors made some serious equity on their investments of 16-plexes, 4-plexes, duplexes and single family homes. In general many of these investors are unloading their Californian properties for millions and buying up the county. They are able to sell a 4-plex in California and buy a 16-plex in Utah. Many of them predict a bubble for California and a short upward squeeze for Utah. The majority of our buyer clients are from California. This state basically paid my teams salary last year. I will give their state some money back when I take my five kids to Disneyland this year. I better sell an extra house to pay for the tickets to Disneyland.

I would classify this market as a strong seller's market. The last time the market was a sellers market was in the 1994/95 era. Utah county is long overdue for a strong run up. Our team sold 82 homes in 2005. Some of the homes I sold before May are coming back to the market by investors for $30-$40k more than they were purchased. It is hard for me to believe but true. About two years ago you could pick up a one acre lot for $120,000 now if you are lucky enough to find one you will pay between $210,000 to $240,000. Supply on lots are virtually non-existent for the typical fellow who wants to build his own home.

I love this market it is a refreshing change for us all. Due to popular demand I plan to keep this page updated quarterly. Feel free to bookmark this page and let me know if I need an update.

Updated 04/18/06