Salt Lake County home sales fall 38%

The number of existing homes and condominiums sold in November in Salt Lake County hit a 13-year low, falling 38 percent from the same period last year.

A Salt Lake Board of Realtors report released Monday showed that 576 units sold in November 2008, compared to 924 units sold during the same month in 2007. The last time home sales were lower was in November 1995, when 444 units were sold, the board said in a news release.

The report was compiled using data gathered by the Wasatch Front Regional Multiple Listing Service.

November sales were also down significantly compared to October, when 839 homes sold, the report said.

The president of the Salt Lake Board of Realtors said that December also has been a slow sales month. "People are waiting to buy because they are seeing the market drop," said Jillinda Bowers. "The problem is, they are not going to know when the bottom hits."

Bowers predicted that sales could begin to increase by early next year.

"Because interest rates are so great, after the holidays are over we'll probably see an upsurge of sales," Bowers said. "Once buyers feel more 'consumer confident,' then they'll jump on these great interest rates."

Monday's report showed the median price of homes sold in November rose to $229,900, up 4 percent compared to a median price of $221,300 in November 2007. The release stated that 75 percent of all homes sold last month were priced under $300,000, with less than 10 percent of homes sold during the month priced above $500,000.

Bowers said the area median price would likely need to decrease a bit more before the market can begin to stabilize.

Zions Bank economic consultant Jeff Thredgold said that the uptick in the median sales price might indicate that a few more of the high-end homes sold likely because of historically low mortgage interest rates.

"Properties in the $200,000 to $250,000 range have been selling, to the extent that you can find them," he said. "As mortgage rates come down, you find more people who step up and say, 'These prices and mortgage rates are attractive; maybe it's a good time to buy."'

Thredgold said that because of the mix of high-priced homes and more affordably priced properties in the Salt Lake County area, it would not be too surprising to see the median sales price in December rise a bit as well.

"With mortgage rates around 5 percent," he said, "it not only helps people buying $250,000 homes. It also helps people buying $400,000 homes."