Comments about ‘Sales of Utah homes drop 33.8%’

Trickle down will effect a strong economy here. Take off your rose color glasses. We are a great big service economy here in the valley and we can't avoid a downturn.

Well, what can I say?
How about...I TOLD YOU SO!!!

It wasn't real. It was a speculative bubble and I have been telling friends and family this since early 2006.

And now it's in the process of bringing the economy to it's knees. Do you think the warnings about getting out of debt were because we were going to have a "mild recession"?
Think again.

Credit is more difficult to come by. Californians aren't buying because houses are cheaper there on a comparative basis. Nevada/Arizona dropping like a stone with economies very similar to Utah. Utah prices will continue to decline.

Here comes Great Depression II.
Save your money.
Let the other guy max out all his/her credit cards keeping the economy afloat.

This is a great time to purchase a home. Prices are down, and mortgage rates have also dropped. So if you have a down payment, good credit, and you are currently renting, fire your landlord and go buy a house. Your mortgage will likely be lower than your rent. If you think you're going to obtain a better deal by timing the market, think again.

If the feds don't drop the interest by a point and the government don't relax the credit crunch, making it easy to obtain credit again. We are in our way to a long recession. Tie your belts and hung-on to your wallet this is going to be a bumpy ride.

The big-government Republicans are making a mistake with the so-called stimulus package. Republicans are using borrowed money now to prop up a bubble market. Economic conservatism is dead.

As I stated yesterday, Utahs descent started in the 3rd and 4th quarters of last year. Anyone with a penchant for common sense and understanding of simple economics could have predicted this outcome.

This is just the beginning and it is going to get a lot worse, which is great news for home buyers and the overall market, as it will restore home prices to realistic, affordable and sustainable levels. After years of unsustainable home appreciation, reality is finally starting to set in for Utah.

The only people dumb enough to tell you that Utah is insulated from what is going on in the rest of the country and this is downturn is tied to the credit crunch are realtors and people whose livelihood is tied to it. This downturn is tied to pricing and greed.

This booming economy was built on residential construction, which is tanking right now. Commercial is right behind it.

With stricter lending standards, people that can actually afford their home and have good credit will be getting homes, which strengthens the market. However, prices still have a long way to fall in Utah before inventory starts to move and shrink.

Dont forget, buy LOW!

Anonymous at 7:05 is out to lunch. He or she is probably a realtor or loan officer. Why buy now when you can buy for 20% less a year later? If I were to buy the house I currently rent my payments would go up $1000. Why buy a depreciating asset?

Anonymous at 7:05, if you're going to do a drive-by realtor pitch at least have the courage to state which company you work for and which region you work in. Otherwise, you're not even standing behind your own empty words.

Clearly you must be a realtor or mortgage broker. Good attempt at spin. It's not a good time to buy a home until people realize how slow the market is and begin to lower their prices. Which they haven't done that. Why buy now and see prices drop 10% in the next year.

The same market forces that drove Las Vegas, Phoenix, and St George have driven the prices in the rest of Utah, primarily the Wasatch Front. The problem is, the affordability index for housing in Utah is now upside down. Remember, we have sold ourselves as the highly educated / low wage state for decades, so it didn't take much to tip it over. Without the availability of subprime and stated income (liar loans) mortgages, the Utah market will follow the others. Utah folks didn't qualify for what they signed up for any more than folks anywhere else in the nation. The demise of subprime has taken 35-40% of the prospective buyers out of the market, and most of your investors. But inventory still reflects the hyped up market created by the mortgage industry. There will be a price correction. For qualified buyers, the next several months may be a great time to pick up a deal, especially in over $300 price range. And if you feel the pain from this correction, just thank the mortgage industry!

My $330,000 home is now worth $600,000 (probably more but I'm dropping it a bit due to price correction). I bought it in 2004. Prices are going to have to drop quite a bit to get people back into the marketplace. Glad we were able to get in when we did because there is no way I'd come close to buying now...

The majority of jobs lost will be in the construction industry. Guess who fills most of those jobs? It isn't the guy next door like it used to be. Maybe we will get a return exodus.

Contrary to what this artical says the economic stimulas package should have no beneficial effect for us here in Utah. The package only allows the increase of the conforming limit to 125% of median homes sales. I am aware of no where in Utah where the median home sales price times 125% will exceed $417000. Therefore we will see no stimulas at all. Thanks a lot congress. Lets stimulate home sales in california, florida, and points back east.

SPEND SPEND SPEND....

Welcome your new Chinese overlords - it's nice to see the government wants us to spend money neither of us actually have. Way to protect and serve us...it's like the witch in Hansel and Gretel. Fattening us up.

Why buy a depreciating asset? Oh Brother a 7:52 am, do you own a car? I moved here from Chicago about a month ago. Absolutely hate renting. I found a place that is twice the size of the place I am currently renting and my mortgage payment after my tax benefit will approximate my rental payment. Buy now if you plan on staying in it for awhile. I have no idea why anyone would want to rent. I've only paid two rent payments in Utah so far and I can't stand the thought of knowing that money will never be returned as I can't let my rental appreciate. I own a place in Chicago that I rent out, and I am more than happy to let someone else make the payment on it for me.

The best way to help the housing market is to get rid of the real estate agents and their stupid 6% commission. Taking a bunch of classes in a week and passing a test doesn't make you an expert at anything. I know a bunch of people this last year who bought a home because of a realtor's advice and now are stuck with a home that is worth 20% less.
The problem with the real estate market is that there has be collusion with agents, brokers, appraisers, home inspectors, and mortgage companies. They were all in it for their own profit and told people what they wanted to hear. The SLC market could not support the rapid growth we had the past 5 years. Salaries never could catch up.

I will be moving to Utah in the next 2-4 months and I am debating on whether to wait a few months to buy an existing home, build, or just rent. In my extensive research I have become extremely troubled by the outrageous home prices! One quote in this article summed up everything, "In relationship to income, in relationship to affordability, the prices are simply too high." Salt Lake may be a strong economy, but it DOES NOT pay well. My income would be considered well above average, but I am trying to figure out how to buy a 500K home (which 3 yrs ago would have cost 300K), 2 cars (prefer mass transit, but Utah has extreme limitations on this front), gas, etc...What is my point? How do people afford to live on a decent income in a market that doesn't pay well and home prices are too high? I guess the answer is rent? Utah isn't much different than many other states, except home prices to income ratio does not make sense.

Just a thought from an "out-of-stater" looking to move to Utah.

Any thoughts from you comment posters?

I have been trying to sell my 4000 sf house in Davis Co. since May 2007. I was asking $460,000 then $425,000 then $399,000. It was appraised at $330,000 2 years ago. My realtor advised me to take it off the market if I wasn't willing to lower the price again to $329,000 inorder to sell it between now and April. My realtor says that my house is overbuilt for the neighborhood. What to do?