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Homes sales decline sharply along the Wasatch Front

No kidding? I wonder why?? Could be because of greedy banks and people! This isn't news. You just have to open your eyes and it's all around.

This is called "pre-cession", step one of a full on recession.

Bush said the other day, America wasn't in recession.

Hopefully McCain will win and conservatives will get the credit for their economic policies.

As long as interest rates remain "VERY VERY " low the hope of another building boom is alive and well. Granted, I doubt it will be a boom like the past few years but there will certainly be some building, selling and buying going on before long. Expect the upcoming election to give the housing industry a shot in the arm as well. Politicians have to fulfill there promises - at least in the short term.

I am a real estate broker and the market is already recovering from the adjustment, in Salt Lake Co there was a 10 month supply of homes from Nov-Mar, today there is a 8 month supply and if the current homes with sales pending it will shrink to a 6 month supply of homes. This means the market is stabilizing, it will take another year or so to absorb the excess inventory, but after that we should see normal appreciation.

To why???: either you've written a very subtle tongue-in-cheek comment, or you're unaware of how booms and busts are created. Which is it?

To "why???" (assuming he's serious) and the real estate broker:

Real estate prices are a function of three things: price, interest rates, and the purchasing power of prospective buyers. Interest rates can be historically low -- but if prices are still high relative to local incomes, the cost of homeownership will be too high for many sales to occur.

"Behind the curve" neglects to mention that "supply," as defined as inventory divided by monthly sales, typically does take a dip in the spring, as sales pick up from the winter dead season. Problem is, listings pick up, too -- and if there's any delay between increased sales and increased listings, the "months-on-the-market" measure of supply gets temporarily distorted.

There's still plenty of downside room, from what I can see of Utah incomes and home prices.

You don't need to worry about Republicans getting their credit for their economy policies--we are living with them today, yesterday, and will live with them for another decade or two. What a stupid statement. McDuff is a continuation of George W flat out. The 2 Dems are a real bad choice also--more baggage than a SUPER freight train could haul. Just make sure that you vote out our present incumbents that represent the state of Utah in Washington will be a good start to fixing the problem. Other stattes need to do the same, OUT with the incumbents, they are the ones that got us in this mess. Just make sure we don't have any more Cheney likes dictating policy and we will start to head in the right direction. Bush was no more than a puppet for big business and other GREEDY people.

Most of the politicians in power have poor methods of fixing this recession. The best way to fix it is to stop trying to bail out all the companies and people who participated. Let them suffer, let real estate depreciate for a year or so, then let those waiting begin to buy up homes. Yes, it will hurt some, but we are capitalists in the USA, not socialists. Once we let the market take its course, we'll have a lot of people wanting to buy homes at lower market prices. The economy will then begin to improve...slowly, but it will improve.

I am a home builder and I'll tell you that we are definitely in a recession. I was lucky enough to sell the two of three homes that I've built this year and make a decent profit, but it looks like I'll only make about $4,000 on the last one which kills me. But, I know builders who have 5-10 unsold homes and they have to make monthly interest payments on 5-10 construction loans. That's like $20,000/month and nothing is selling right now. These guys are toast! Land prices need to come down and the gov needs to stop artificially propping up the economy because it's only prolonging the slowdown.

The economy is fine in Utah, just not in CA, AZ, and NV. You'll see that this summer will be a big year in Utah real estate and if you don't buy a house this summer, you'll miss the perfect buying opportunity. Get in now while the gettin' is good!

Home prices need to match up with incomes a little bit better before we can say that the market has bottomed. Right now a man who makes $60,000/year and has a wife and three kids can't even get into a small 3 bed 2 bath house (partly because the banks don't want to lend). Something suitable for him should cost about $230,000 or so and the monthly payment should represent about 30% of his income. But that's hard to find along the wasatch front these days. I guess you could live in a condo but the kids would go stir crazy cooped up all day; and they'd become video game junkies just like kids in California.

Nate, if you really are a Realtor, how can you seriously suggest that cashouts from CA, NV and AZ moving to Utah and speculators from those states were not a large part of the real estate price boom in Utah? Where are the Utah jobs with high wages to propel a further escalation in the glutted home market at prices that were a function of buyers coming from those states?
"Buy now or be shut out" was the Realtor rallying cry in those states which compelled some fearful people to assume loans that were risky and led to disaster.

One thing I always noticed while I lived in Utah, and that is Utah always followed California by about 12-15 months in trends. Utah will experience what we've lived with here in CA for the past 12-18 months. You can bet on it.

Californians were mostly buying high end real estate $500K and above so prices on smaller homes didn't get pulled up with those purchases. Believe me I know because I'm from the bay area. Utah is one of the best places to live and we have a strong economy. Just you wait and see mister. Summer '08 will be one heck of a season for my kind. One heck of a season indeed. I'll stake my $300,000 bank account on it.

My wife and I are looking for houses in Orange County, CA right now (not buying just yet) and 3 bed 2 bath condos that sold for $579,000 last year are now selling for $349,000. That's over $10,000 of depreciation per month! Too bad. Just wait a little longer, Utah, and you'll start seeing $3-4,000 depreciation per month. For all those sitting on the sidelines waiting to buy, your day will come.

RealtorNate, get a clue man. You have no idea about any of this.

I'm always amused how brokers and realtors feel the need to and have the time to come on here and tell us that things are O.K. or are shortly going to get better.

I guess I'm looking at a different MLS listing because the one I'm looking at has been rising steadily in inventory. My zipcode has also been steadily rising in inventory.

Commercial real estate is in the tank and they keep building like maniacs.

Silly me. Guess I need to listen to the "experts".

I'm a real estate agent, and contrary to most I do not believe all is well in Utah. Prices have outpaced both rental rates and incomes in Utah. Speculators and Californians fueled this primarily, but greedy Utahns who know nothing about real estate got in on the act too. If only business were as simple as buying something and flipping it to a greater fool at a higher price. I'd say Utah's market still has a ways to go -- downward.

RealtorNate why would you ever have 300k in a bank account? You aren't even staying ahead of inflation with the rates you are getting and only the first 100k is FDIC insured.

I think people who are saying to buy now are the same people who have been suckered into real estate multilevel marketing schemes out of Utah County. Save your "tuition" at the real estate school. Maybe you are at the top of the pyramid if you really have 300k in the bank.

The economic data doesn't lie. Home prices appreciated faster than wages and we are in a recession. Expect housing prices to continue to decline unless the Feds pump so much money into our economy that everything else doubles in price. Then some people may be deceived into thinking their home didn't drop in value since it "still" appraises at $300k. Problem is the dollar will be worth half as much and likewise their home will really be worth half as much.