Reader comments
Homes sales decline sharply along the Wasatch Front

CAP | 12:18 p.m. April 23, 2008

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.

Ed Johnson | 12:22 p.m. April 23, 2008

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

Out of touch | 1:18 p.m. April 23, 2008

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

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

Comments continue below

why??? | 1:25 p.m. April 23, 2008

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.

Behind the curve | 2:05 p.m. April 23, 2008

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.

Earl | 2:21 p.m. April 23, 2008

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?

Thomas | 2:38 p.m. April 23, 2008

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.

Re. Out Of Touch | 3:10 p.m. April 23, 2008

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.

Gus | 4:07 p.m. April 23, 2008

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.

Jiminy | 4:14 p.m. April 23, 2008

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.

RealtorNate | 4:16 p.m. April 23, 2008

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!

Fonz | 4:24 p.m. April 23, 2008

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.

Uh huh | 5:15 p.m. April 23, 2008

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.

Mike in CA | 5:46 p.m. April 23, 2008

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.

RealtorNate | 6:05 p.m. April 23, 2008

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.

Rich Noel | 6:08 p.m. April 23, 2008

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.

Don't Believe My Own Lyin' Eyes | 6:18 p.m. April 23, 2008

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".

bearish agent | 6:51 p.m. April 23, 2008

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.

300k Bank Account? | 6:57 p.m. April 23, 2008

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.

Economist | 7:04 p.m. April 23, 2008

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.

Reality Check | 7:08 p.m. April 23, 2008

The size and number of new homes being built in Utah does not match income. It makes no sense. Either a lot of people got a lot of money from Dad, or a lot of people are leveraged up to their forehead.

Overinflated | 8:42 p.m. April 23, 2008

Utah is an overinflated market. I'm waiting for prices to come down. I've visited a few friends who live in large homes with half the rooms empty because they can't afford furniture. Too many mortgages people can't afford. I'm hoping to pick up a nice foreclosure in a little while.

Future Utah Homebuyer | 9:20 p.m. April 23, 2008

No kidding--of course the prices will come down! Homes in Utah are way over inflated--a starter home is going to run you over 200,000 right now. How can any young family afford that? My wife and I made 60,000 last year,(smaller, i know but we're still young) have great credit and can get a loan--but if we want anything built since polgamy "ended" we're looking at payments of 1200 a month! who plays that game? i'll sit and wait; Prices will come down cause no one is stupid enough to pay that to live in the rundown parts of salt lake county!

Denver resident , used to live i | 9:44 p.m. April 23, 2008

All Utahn's!(I used to be one) Just wait to see how bad is really going to get. Denver area was the number one foreclosure market for a while but we finally let that prize go. My parents still live in Utah and their home is about the same as ours but they make 30K less than I do and like most Utahns, they can not live like they used to. If wages don't catch up soon there, Utah will lead the nation in foreclosure, which is sad.......Remember what our leaders said "don't get into debt", it is pretty sad to see this happen....

Waiting it out | 9:54 p.m. April 23, 2008

I am also waiting it out. Utah will fall like the rest of the nation. Agents have said that Utah is not like other states but when everything was going up they all said that we were like other states but we just lagged. Now all of a sudden we aren't like them. I don't buy it. I was going to buy a house a year ago and now I can get that same house for 40K less. It is going down and there is no reason for it to go up despite what agents may tell you. There simply are not enough people and jobs in Utah.

Wow! | 10:01 p.m. April 23, 2008

I doesn't surprise me one bit. The Utah housing market is crashing right before our eyes and the brokers and speculators keep telling us how good the market is. They were saying the same thing a year ago and now look where we are. If you don't have to buy right now wait. It will only get better.

RealtorNate | 10:18 p.m. April 23, 2008

I think all potential home buyers should look to buy in June or July 2008. You definitely don't want this buying opportunity to pass you by. Please, I'm serious about this.

Your Wrong | 10:49 p.m. April 23, 2008

RealtorNate there is no reason to buy right now. I make a great living and I can't afford a decent house. I am waiting it out. The housing market went sky high and now it needs to fix itself. If you haven't bought a home then wait until falll of 2009 to start looking. That is when you will get a bigger house for a smaller mortgage. This time last year in Southern California that market looked that same way. Then in August housing prices crashed and have been falling since. By fall 2008 in Utah housing prices will crash and 12 months after that you will have great buyers market.

Really A Realtor - Nah! | 11:02 p.m. April 23, 2008

RealtorNate,

I don't think you are a real realtor. A real realtor would not want to alienate potential customers with unbelievable outlandish comments.

Ryan | 11:13 p.m. April 23, 2008

Utahs market needs to crash. People got greedy and someone needs to pay. It shouldn't be the responsible people who didn't take risky loans or buy home at inflated prices. Let the greedy flop and the responsible will scoop up there house at a price that they are realy worth... about half. NATE needs to go to college and learn econimics. Maybe you should move on to noni juice or some other mlm. By the way you don't have 300k and if you did it was by ripping people off. Also no one believes you. You are crying wolf and we are calling you on it.

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