From Deseret News archives:
Utah home sales drop almost 11%
The number of homes in Utah sold dropped 10.86 percent in first quarter of 2008 compared to fourth quarter 2007, the report said.
The report was compiled using sales figures gathered by the Wasatch Front Regional Multiple Listing Service.
"I expect we'll continue to have a sluggish first half of the year, but that things will flatten off and sales will start to increase by the second half of 2008," said David Mansell, president of the Utah Association of Realtors.
The report said that home sales in Utah dropped by nearly 25 percent in the third quarter of 2007 and 33 percent in fourth quarter of last year. Home and condo prices in Utah averaged $272,503 in the first quarter of 2008, down about 2.5 percent from the fourth quarter of 2007. Without Park City figures, the average price was $243,409.
"Historically, real estate has increased every year about 6 percent on average since World War II," said Mansell. "As long as the population keeps growing, at some point, you're going to have price appreciation."
The association's survey found that the average sales price increased in 11 of 18 statistical areas in the state in the first quarter. The greatest appreciation occurred San Juan County, where the average home sale price jumped 18.17 percent. That was followed by Grand County, at 9.27 percent, and Wasatch County, at 8.23 percent.
The biggest home sales price decreases were in the Park City area, which had a 7.99 percent decline, and the Brigham City/Tremonton area, which declined 7.37 percent.
Mansell said a steep decrease in the number of new homes under construction might pose the biggest problem when he expects the market to begin turning late this year or early 2009. He said residential new construction is down about 60 percent, and that might become an issue as the state's population continues to grow.
He said there could be price spikes again next year if the supply of homes is absorbed too quickly. Conversely, local analysts have predicted that home prices could continue to slide through the summer. Wells Fargo economist Kelly Matthews in February said that he expected prices to decline 6 percent to 8 percent by mid-year 2008, compared with the previous year.
E-mail: jlee@desnews.com
