Salt Lake County home sales plunge to record low

Home sales in Salt Lake County fell to record-low levels last month, according to the Salt Lake Board of Realtors.

The trade association reported Wednesday that 435 homes and condominiums were sold in Salt Lake County during January, the lowest monthly sales totals since electronic records began being kept in November 1995.

Sales in January 2009 were down 32 percent from January 2008, and 37 percent lower compared with December 2008, the board said in a news release.

Ryan Kirkham, president of the Salt Lake Board of Realtors, said January sales typically lag.

"January is the slowest month, and couple that with the economy and people being nervous, and we set a record for ourselves," he said.

Despite the drop in sales, prices paid for houses and condos remained relatively steady, he noted. The median price of all homes and condominiums sold in January was $233,000, slightly below the median price of $233,440 reported a year earlier, the board said.

The median sales price continued to fall from the peak in June 2007 of $243,500, said board spokesman Dave Anderton. When compared with figures from January 2009, the median sales price decreased 4.3 percent, he said.

January sales over the past 14 years have been an average of 757 transactions for the month, Anderton said. But sales in January 2009 were far below totals reached in more recent years.

Total sales activity for January 2006 and January 2007 was above 1,000 units, the board said.

"Of course, that was a different time," Kirkham said. "Back then, lenders were pushing exotic loans, and just about anyone could get a loan. Now, even with good credit, it is difficult to get financing." The slow decline in median prices was a reflection of a glut of high-end inventory, Kirkham said. While high-priced properties are taking double-digit hits in their values, they continue to sell at prices well above the median range for Salt Lake County, keeping the overall median value high, he added.

He also noted that the steep sales declines in 2008 would likely pressure home sellers going forward to continue to reduce their prices.

The median cumulative days on the market for homes and condos in January increased to 98 days, up from 83 days in January 2008.

"Sales are way down," Kirkham said. "And there are still a lot of people who are realistic and haven't dropped their prices to the right price."

As builders work through their unsold new inventory, and real estate agents are working through their unsold existing inventory, prices will stabilize, and the situation will eventually correct itself, he said.

E-mail: jlee@desnews.com