Reader comments
Wasatch Front home prices follow national trend downhill

slrepubo | 12:59 a.m. Oct. 29, 2008

Buckle Up... they are going lower!!!

Not much | 1:43 a.m. Oct. 29, 2008

Utah did not go crazy with home values the last 2 years like Las Vegas and Arizona, so you while it may not go up for a while, it should not go down much more than a fraction here or there depending on the area. With the high cost of materials/building, it is certain that it will eventually (1-2 years) start to go back up like it always has over a very long history.

Easy to see... | 1:57 a.m. Oct. 29, 2008

It is always easy to tell, from the posts on these stories, those who work in the real estate business.

I am sorry to say but this decline will continue for at least another 12 months! Now, the percentage of change might not continue at such a high rate, but if the prices were able to increase for a 2-3 year stretch, don't be too surprised if this continues for another 12-18 months.

Comments continue below

credit crunch being blamed? | 4:56 a.m. Oct. 29, 2008

Ya right Kendall! The credit problems weren't made known to the public until the end of the month, well after the decisions to buy had already been made. We as consumers won't see the full effect of the credit crunch on home prices for at least a year or two.

Jason | 5:12 a.m. Oct. 29, 2008

But my REALTOR told me this wouldn't happen? Utah's economy is strong. How can this happen?

anon | 5:53 a.m. Oct. 29, 2008

Maybe the home values did not go crazy, but the evaluations for property taxes certainly did!

Kevin | 7:14 a.m. Oct. 29, 2008

Not only are prices going down, they won't come back for years, because the credit vehicles that fueled the crazy borrowing that pushed prices up will not come back.

Anonymous | 7:44 a.m. Oct. 29, 2008

Home prices in general are over inflated anyway. The prices should come down by another 20%. Sorry to those who will lose money, but our society has got to get back to viewing a house as a home, and not just an investment.

Re: Not too much | 9:07 a.m. Oct. 29, 2008

Having a home double in price in 4-5 years is not too much? Maybe not for you and your commission. But for the average person in Utah, have wages gone up at an equal rate? Not even close. The only people who benefit from the high home prices are those in the real estate business. The average person pays more for their mortgage, more taxes, and more for the next home they purchase. Let the prices keep sliding!!!!!!!!!

Optimist | 9:17 a.m. Oct. 29, 2008

Home prices will rebound in just a year or two. Just like those internet stocks I bought in 1999, the prices will come roaring back. There was no "housing bubble". Hurry and buy now before the prices go back up.

If the lending industry would just get its act together and start lending lots of money to people who can't pay it back, then all these $500,000+ homes will start selling like hotcakes again.

Dose of Reality | 10:13 a.m. Oct. 29, 2008

An important point the article failed to mention is how the foreclosure rate is going to effect prices. I read earlier this week that Utah foreclosures were up over 100% in the 3Q, compared to last year. This will cause prices to drop even further and is not going to be over in 12 months. Look at the historical median prices of homes over the past 100 years in the U.S. In 1908 when a person bought a home, they did not break even until the early 40's. This cycle has been repeated over and over again, the only difference is that median prices in this cycle outpaced anything ever seen before. Some are comparing this slump to what Japan experienced in the early 90's and it took twelve years before prices recovered. Without the irresponsible lending to drive the market... people's wages will not be able to sustain the current prices or fuel them higher. At a median price of $245k, a household would need to make around $80k to responsibly afford that house. What is the median household income in Utah??? Not $80k.

Hope For Lower | 10:21 a.m. Oct. 29, 2008

As Prices continue to drop over the next few years and Foreclosures increase, that will be such a great opportunity to pick up these houses cheap. I am hoping for a Long downturn to buy as much as I can over the next 5 years. What a great Opportunity to have these prices drop and Banks selling at 50 cents on the dollar.

41 Cadillac | 11:30 a.m. Oct. 29, 2008

Prices of homes in SLC will continue to drop until 2014 then stay flat for years. It seems to me that most citizens of SLC do not make the income to support any purchase over $350,000.

The lie loans are gone forever. Each person will need to prove they can repay a loan. That is for sure. Plus put down their own money to purchase.

Incomes will be spent on cars. Again a person will need to prove he can pay for the car. Credit limits are ratcheting down fast.

School, health, food, recreation, and all regular living expences will be the top priority.

So a house will be to live in and enjoy. What is the real value of expensive granite kitchen counter tops and luxury bath houses, (literaly bath houses) in a private home.

I understand Warren Buffet lives in a modest home. He of course seem to have his fun by saving money and investing. Hm.....Save money. Do SLC citizens know about "that". So. Be. It. Best to All
Rather than a burden of a cash hole to thow money into.

Utah | 11:38 a.m. Oct. 29, 2008

Welcome to the bubble bursting party!!!!

Anna | 11:44 a.m. Oct. 29, 2008

"not much" said that "Utah did not go crazy with home values the last 2 years like Las Vegas and Arizona." Seriously? Maybe not as quickly, but definitely still crazy. Not every state doubled their homes' values in the last five years, but Utah did pretty close. I don't know how this market is going to cleanse itself with all of the $400k and up homes saturating the listings. Wake up, sellers and realtors! It's time to REALIZE that you won't MAKE a ton of money on your house. It's time to stop lamenting that you "lost" money you never had on your value. If you must sell, try selling it for BELOW market value, and your lack of GREED will help you move more quickly!

Property Tax Question | 11:50 a.m. Oct. 29, 2008

When are my property taxes going to reflect the new (downward) value of my home?

Patient Buyer | 11:50 a.m. Oct. 29, 2008

Who do these sellers think will come in and buy their $750,000 home? Or even their $500k home? Those young couples getting into their starter mcmansion don't have the down payment they now NEED to get a loan. And now that the banks aren't loaning to EVERY BODY, the buyers are few and far between.

So, good luck to those holding out for the market to go back up again. If I were a betting man, I'd say you've got about seven years until your home's value is where you think it is today. Lower your expectations!!!

Long way to go | 12:46 p.m. Oct. 29, 2008

Prices have a long way till we hit the bottom of the housing market. What's interesting is how much more house I can get now for 200K than I could get last year. While it might look like prices have only come down 4% they really have come down a lot more because you can get way more house for your money.

If you don't have to buy now just wait a while longer. Price will go down more and you will be able to get more house for your money.

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