Home values surging in northern Utah counties

KAYSVILLE -- Home values continue to rebound from the aftermath of the Great Recession, with most homeowners in Davis County once again back to pre-recession values. Morgan and Weber County homeowners are just shy of where their homes were valued in 2009 before the bottom fell out of the market.

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The figures are particularly promising in Davis County where the median sales price for a home is up 9.4 percent over 2012 sale prices, according to officials with the Northern Wasatch Association of Realtors.

In 2009, the median home value in Davis County based on sales was $205,500. That same median value in 2013 is now $209,000, according to the association's tracking figures.

One of the reasons Davis County has been able to rebound a little quicker in getting back to its 2009 home values is because of its proximity to Salt Lake City for job commuters, officials said.

But Weber County isn't far behind, with a 9 percent increase in home values over 2012. Before the bottom dropped out, in 2009, $155,300 was the median home sale value. It's back up to $150,000 in 2013.

The typical Utah home lost 8 percent of its value during the Great Recession based on recent estimates released by the U.S. Census Bureau on Nov. 7, said Stephen Handy, providing marketing for the Realtors association.

But the Northern Wasatch market areas of Davis, Weber and Morgan counties all reveal an increase in the price of homes over last year, Handy said.

Morgan County has experienced the smallest gain in home values at 7.4 percent over 2012, but it has the highest median home sale value of the three counties.

Median home values in Morgan County are now at $251,000, which is still $9,000 short of where they were in 2009.

But association officials are optimistic homeowners will continue to recapture the ground they lost, and possibly surpass it.

"(Based on) all indications, we are going to continue to creep up," said Christy Vail, association president.

"(Home values) could still see another 6 percent rise through 2014," Vail said, making it a strong market for both buyers and sellers.

The low interest rates -- about 4 1/2 percent -- also make it a favorable climate to buy a home, she said.

Vail said the current interest rates are amazing when compared to the 1980s when rates were as high as 15 percent.

"Given our unemployment rate continues to drop, 2014 will be a great year for both sellers and buyers," Vail said.

Homes currently selling well in Davis and Weber counties are higher-end units in the $350,000 range, and those homes referred to as a "second move-up," with values ranging between $200,000 to $300,000.

Based on its location, Morgan County's home values remain slightly less than those in Weber and Davis counties.

"There has been a lot of growth (in Morgan County), no question. But the secret is not yet out of the bag what a great place it is," Vail said.

But another association official said sampling size is the only difference between Morgan, Weber and Davis counties.

Morgan County home values are 2 percentage points lower than its neighboring counties due to it being smaller, having fewer home buying transactions, association CEO Mike Ostermiller said.

The smaller sampling lends itself to the percentages in Morgan County swinging more dramatically in the event a home sale falls through, or is approved, Ostermiller said.

"As a general rule, I would say the market is similar (in Morgan County)," he said.

Because of increasing home values, Vail said, the association has also noticed an uptick in the number of people entering the real estate profession. "That is as encouraging as well," she said of how a strong home market benefits the job market.

Vail said it is always fun to see new people, some college graduates, recognize the earning potential of being a Realtor.

http://www.standard.net/stories/2013/12/10/home-values-surging-northern-utah-counties