19 April 2008 - For the second time in just two months, Salt Lake City has found itself on a Forbes magazine top 10 list. In February, Salt Lake was the No. 1 city for bargain house-hunters, and now Salt Lake has come in as the third best city for home sellers.

In its April 7 "Best Cities for Home Sellers" report, Forbes said high job growth as well as a sharp drop in new construction - "despite not having an overwhelming inventory glut" - make Salt Lake City a good market for sellers.

The report's findings are based on a study of the country's 40 largest metropolitan areas. Four factors were studied: 2007 vacancy rates from the U.S. Census American Housing Survey compared to the previous year, construction starts as tracked by the National Association of Home Builders, job creation rates from the Bureau of Labor Statistics, and the effects of the new Fannie Mae and Freddie Mac conforming loan limits.

The top cities on the Forbes list each experienced a variety of circumstances that have or are expected to tighten housing inventory and, in turn, help those trying to sell their homes.

First-place market San Jose, Calif., made the list because tight regulatory standards limited overbuilding in the area. San Francisco came in at No. 2 because the higher conforming loan limits will increase the number of potential buyers in this pricey area. Sizeable annual job growth of 3 percent put Salt Lake City in third place, and fourth-place market Austin, Texas, made the list because of job and population increases that have kept its vacancy rate steady.

But sellers aren't the only ones benefiting from Utah's strong job growth - buyers are also using it to their advantage as they look for real estate bargains.

In its February "Best Cities for Bargain House-Hunters" report, Forbes magazine suggested that real estate buyers looking for a good deal should shop in markets like Salt Lake City where "job growth is strong, foreclosures are relatively low and inventory is high."

These factors, according to the article, allow buyers to have flexibility in negotiating prices and sales terms - all amid the backdrop of a healthy economy, which means there is less risk for the buyer. The article went on to explain that Salt Lake City is seeing a buyer's market, not because of a lending meltdown or economic downturn, but because of overbuilding - a factor Forbes says should "balance out."

The fact that Salt Lake has received top rankings on both buyer and seller lists in a two-month period underscores the strength and stability of Utah's housing market and economy.

On the buyer side, consumers are seeing more housing choices and greater negotiating power because the economy is working to absorb the extra inventory created during the housing boom. But these buyers face less risk than in other areas of the country because they are purchasing in a market with high job growth - a signal that demand is being absorbed because people are moving in and building the wealth necessary to buy homes now and in the future.

On the seller side, homeowners can take comfort knowing there isn't the sizable supply of excess inventory that would significantly push prices down. Surplus inventory should be absorbed because builders have cut production and new residents keep moving to Utah - factors that will help support home prices.

In addition to the Forbes rankings, Utah has recently appeared on several other notable lists, including coming in ninth on Pollina Corporate's top 10 list of business-friendly states and ranking No. 2 in CQ Press' state livability rankings, which Gov. Jon Huntsman said was a reflection of Utah's "unparalleled quality of life and exemplary economic success."

If you're interested in learning more about housing in Utah and the state's economic success, visit www.UtahHousingFacts.com or call your Realtor - because nobody knows Utah real estate like a Utah Realtor.