As an economist who studies real estate markets very closely, I predict Utah home prices will fall 30-35%. Mark my words. Virtually every home will be affected. Foreclosures in new, overpriced developments, such as Daybreak, will bring the state to its knees.

Utah will be much worse off than other areas of the country because its economy disproportionately relies on the construction and mortgage industries, which have almost been obliterated to non-existence now. The state's lack of diversification in counter-recession industries will both speed and deepen the decline.

Not a good time to be in Utah... unless you're a bankruptcy attorney.

Buy now? Are you insane?!?!

This is the gripe I have with realtors, mortgage brokers, and appraisers: they live with their heads in boxes and have no understanding of the impact broader macroeconomic events have on local real estate prices.

Utah's market is truly bewildering. How can a state with such poor unemployment (home to only ONE Fortune 500 company, and a fledgling one at that) support such staggering real estate prices? The answer? IT CANNOT. Look at Nevada, Arizona, and Florida. Utah will be much worse off.

Appraiser tries to comfort by citing an increase in building permits -- but this increase is alarming, not comforting. Utah already has a massive inventory of unsold homes and empty commercial space -- why in the world build more?

- #1 Economy in the nation
- From 1999 to 2005 we saw ZERO price increases... factor in today's #s and we are priced where we should be.
- Have you looked at house prices in any city (the US, Europe, Asia) with the population size of the Wasatch Front? Check it out... you will see that prices for a a home in a major city (and yes SLC and the surrounding areas are a major city now)are much higher than here.
- Yep, you guessed it... I am an EVIL mortgage broker... and guess what? My phone is ringing... with buyers... many that qualify for an FHA loan... with only 3% down... and they are buying now because there are better deals.
- Yes, I am a real estate investor... and I hope most of you don't buy right away. You see that means there are better deals for me and when you sheep decide to run the other way, I will sell you your fear at a 20% mark up. Do the exact opposite of what everyone says and you will probably be in the right place.

I just bought a home in utah. It was wonderful as a buyer. I was able to negotiate tremendously. I am now living in a home that I would have never been able to afford previously. And others can do it too. You can still get great interest rates, 30 yr fixed loans as long as you have good credit.

Now is the time to buy, its not a very good market for selling, but then if it was most likely it would not be a good time to buy. The market is always going back and forth between being a sellers or a buyers market. So...if you are ready for a home get out there and start to buy. This will only do the economy good. We need to quit listening to the media and quit being afraid. There will always be houses that are being sold and bought and Utah's ecomony will only boost if we all quit being afraid. No, I am not a realtor....I am just someone who is sick of hearing about people being afraid and listening to the media and government. Fact is, yes things have slowed down, but they have not stopped and if we quit buying we are only going to bring the economy to a stop.