The title of the Salt Lake Tribune article on housing published yesterday “Home Prices in 20-largest cities post first annual gain since ’10” reported the Case Shiller index saw a .5% improvement from May to June and every city in the 20 city index saw improvement.  This broader trend is really having an impact in our local market with inventory levels down, prices rising, and new construction booming.

The subtitle to the article is also telling, “Decline in costs could spur pattern of buying”.  The story here is interest rates.  As interest rates continue to fall to below 4%, the monthly payment for buying a new home also continues to fall.

If you are in the market for a home in Southern Utah or Southern Nevada, the inventory is significantly reduced.  We have seen growth resume and the larger national trend is going to continue to shift the market balance away from Buyers to Sellers.  Until rising prices bring a new wave of sellers into the market, the inventory shortages and price increases will continue.