| Sumario: | We examine the Utah County housing market using a sample of over 70,000 single-family residential transactions from 2000 through 2016. To measure the strength of the Utah County residential market, we examine selling price, transaction volume, and number of days the house is on the market. We compare housing prices using two models: a naïve model that calculates the average transaction price over a period, and a hedonic pricing model that gives a detailed, holistic view of how homes are priced. The latter incorporates characteristics of homes not priced in the naïve model. Characteristics include total square feet above and below ground, age of house in years, garage space, total lot area, and other priced factors. When using a hedonic pricing model, we find evidence that home values have experienced a 2.5% annual appreciation from 2000 through 2016. Our study shows that single-family dwellings have increased in line with historical rates over our sample period and not at a real estate bubble pace.
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