Sales of Utah homes drop 33.8%

Sales of existing homes in Utah dropped 33.8 percent in the fourth quarter of 2007, compared to the fourth-quarter of 2006, mirroring decreases in much of the rest of the nation, according to a report released Thursday by the National Association of Realtors.

The median sale price of existing homes in the Salt Lake City area also showed a drop at the end of 2007. While sale prices for the year were up 2.5 percent overall, they decreased 7.13 percent from the third quarter to the fourth quarter of 2007.

The median sale price of a home in the Salt Lake area in the fourth quarter was $229,100, down from a median sale price of $246,700 in the third quarter.

Utah Association of Realtors president Dave Mansell said even though sales are down, there is still cautious demand in the marketplace in Utah.

"People are holding back because they're afraid the market is going to fall on its face," he said. "They're hearing Florida, California and Las Vegas are seeing these huge drops in prices, and they think it's coming here."

But Utah will likely avoid major problems, he said, because the state's economy is strong and the housing market has not been vulnerable in the ways other areas have been.

"Historically, we haven't had the same market swings," he said. "We don't go up as fast, and we don't fall as fast or as far, so it's much more stable."

Sales of existing homes fell in 45 states during the October-December quarter, with metropolitan areas showing growing weakness, the national report said. The fourth-quarter data from the National Association of Realtors underscore the breadth of the housing market's slump.

Prices have fallen more than 10 percent since their July 2006 peak, in the worst U.S. housing slump in 26 years, as the number of unsold homes has grown and prospective homeowners have had a tougher time getting home loans.

The inventory of unsold homes was 3.91 million in December, according to the Realtors group. The average number since 2000 is 2.67 million.

South Dakota was the lone state to show a sales increase. Existing home sales there rose 8.9 percent from the same quarter a year ago. Sales were unchanged in North Dakota. No sales figures were available for Idaho, Indiana and New Hampshire. Sales also fell in Washington, D.C.

Median home prices fell in more than half of the 150 metropolitan areas surveyed. Out of the 77 that experienced declines, 16 showed double-digit percentage drops, the trade group said. The largest price declines were found in Lansing, Mich.; Sacramento, Calif.; Jackson, Miss.; and Riverside, Calif. — all of which posted price declines of 17 to 19 percent.