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Foreclosures jump in Utah

... Rich S. from Orem's Realty Executives on 1600 North just called me yesterday to tell me the bottom had occurred more than two months ago already and that Utah was on its way back to rapidly rising real estate rates. "Homes are now receiving multiple offers," he said. "Get in now before the great interest rates are gone," he said. How odd that four out of the last five homes I've looked at have been in short sale, thus the great starting list price.

Let this be a message to the Ashton Kutchers of the Utah Real Estate industry: DO NOT PUNK ME! I'm not a stupid celebrity. I see right through your sham and the fake stories of recessions past.

P.S.: I haven't received a raise since 2006, even though my employer's profits have soared fourfold in the last six years. Does that mean I'll still be eager to pay $250K for the same townhouse that was selling for $115K three years ago? You do the math, fast-talking real estate agent ... unless math requires a mortgage broker's help, too!

Touche!!!!!!

Well Said!!!!!!!!!!!!!

That 'home ownership' is a universally good idea is just a false and long-lived myth in English-speaking countries. If Americans were any better at math, they would run the numbers and figure that out! When house prices go UP and rents go DOWN it does not take a rocket scientist to figure out that 'demand' is not the price driver, but 'mob psychology' is!

As the old saying goes, 'Rich enough to RENT!'

Even WORSE than the financial assessment of RENT vs BUY, loss of MOBILITY in an unstable country is very costly in personal and family terms. BUY = STUCK.

The Wasatch Front real estate market is NOT different. The drama is unfolding just like it did in all of the other markets. The fundamentals do not support what has happened in the last several years. Any one that says different is a real estate agent or is attending real estate "classes", which are just a cover for good old Utah syle MLM scams.

I read the article. Does it intimate that "stagflation" is here in Utah now?

Huge inflation of basic needs and no or limited economic growth for the people who buy them?

Or does it say that their is a huge credit crunch and only the select will have access to credit?

Two questions

Does the war in Iraq have anything to do with our economic problems specifically the credit crunch?

Are we in competition with the government as they borrow to finance the war?

Second question where do we go from here?

This is just the tip of the iceberg folks. It was inevitable. Utah has trailed SoCal, Nevada, and Phoenix for the past several years. Foreclosures will be no exception. The fraudulent mortgage industry shows no favorites. Utahn's fell for the subprime and non financial (liar loans) products just like everyone else. Give it a year or two "how odd" and you will be able to pick up that townhouse for much cheaper. Interest rates will be higher by then, but don't let the mortgage/real estate industry fool you--purchase price has a whole lot more to do with affordability than the interest rate.

WHAT?

Utah is just like California about this time last year, sales grinded to a halt, appreciation stopped, and foreclosures started to inch up. All the "experts" at that time said they had reached a "soft landing" in price appreciation. Today home prices in California are plummeting by up to 40% YoY in some areas. Don't believe the koolaid drinking realtor hype that we have reached bottom and now is a great time to buy. Now is probably the absolute worst time to buy. Median home prices in Utah are way out of line with median incomes and they will come down significantly (20-40%) over the next couple of years. If you are thinking about buying DON'T. Hold out for a year or two and rent. You will get a lot more for your money this time next year.

I've heard the same thing for 6 months while the market continually declines. Would be nice if realtors didnt monopolize all relevant data. They are helpful for those that don't want/know how to do a deal, but they only get in the way/raise prices for everyone else (course its good time to buy, their livlihood depends on it, and on highest price possible-think about it-better job buyers agent does the less $$$ they earn, why would they do a good job and negotiate best prices?). Don't listen to realtors. Watch for yourself. Every house I look at calls me back begging me to come take another look, and they have lowered their price. I even emailed a house yesterday, the reply was that it was too late, he lost it. I moved here from LA last year, and the other day I pulled out a section of an old LA paper. It was from August 2006, and the headlines were the same as we read about here today. Utah is just behind about 2 years. Just wait people, realistic prices/major correction is in store. Keep watching and you will see more homes for sale, lower prices, and desperate sellers.

I had a similar conversation with an agent from Realty Executives a couple of weeks ago. What she didn't know is that I have access to a lot of raw data that shows we are nowhere near the bottom.

Hey, if you haven't received a raise, you might want to investigate what others are getting paid in your industry and bring those figures to your boss. But be prepared to get a new job if he calls your bluff. Oh, and we are bumping along the bottom. Foreclosures today are results of what has happened months ago.

I've been looking to buy a home for two years but I've been apprehensive about the prices. In all that time I've never heard even one real estate agent or loan broker say that it might not be a good time to buy. It's just not in their interest to say anything but buy, buy, buy. It's the only way they make money.

I think Utah is in for some pretty sharp price declines. Wages are weak and the prices are still too high. Just look at what's going on all around us. Colorado, Nevada, Arizona are all suffering. We'll be in the same place they are in a few months.

You are joking right? Tell me what you have after renting a place for thirty years? NOTHING. You are throwing you money down the toilet. With owning a home, after thirty years you will be able to sell it for thousands more than you put in to it. Or if you don't want to sell, you can then live in it for free. Go ahead and keep renting though. Wise investment. You probably lease your car as well, don't you?

... as of right now rents are going up drastically in Utah as more people lose their homes and flood the market.

And the glut of new construction and foreclosed homes has not yet entered the rental market, making it a competitive place with more applicants than spaces.

That always makes prices go up. At least for now.

It's good to buy, at the right time. For now, rents are going up big-time. I think the best bet for non-homeowners that qualify is to stick it out, get to know a realtor that deals in short sale/preforeclosures, and find a deal early 2009.

It's sad to me to see all these people commenting and enjoying seeing people in Utah suffer. These guys are in their own cheering section waiting for foreclosures to rise. Keep waiting and after the summer is over me and my investors buddies are going to snatch up all of the good deals. You think housing is expensive in Utah? It's STILL way more expensive in Cali, AZ, and many many other places. Investors are going to snatch up these good deals like candy.

You clowns have no clue what you are talking about.

Home prices have doubled in Utah in the past 4 years. Even though existing sales have slowed, the prices have held steady. YOU HAVE DOUBLED YOUR EQUITY IN 4 YEARS! In stable markets, you want it to double about every 15 years.

My home here in Pennsylvania has gone up 8% in the last 4 years. Utahns have gone up 100% in the same time frame.

Quit your whining and look around. Then you will realize how truly good you have it.

Our market is headed for a serious downturn. I dont trust the real estate industry at all. Are you going to tell me inflation, the rising cost of oil and food, and the US dollar declining doesnt affect Utah? Come on! All the states around us are decling ie Arizona, Cali, and Nevada. Where do you think the people who can afford $400,000 homes in Utah were moving to Utah from? Think again if you think people in Cali wont wait out the storm.

To a realtor it's ALWAYS a great time to buy.

Umm, some common sense would tell you if the market has gone up over 100% in 4 years then its due for a big correction. Look what happening in Nevada, Cali, Florida, and Arizona. Oh I forgot, Utah is different, LOL.