Deseret News | Utah home sales drop almost 11%

Reader comments
Utah home sales drop almost 11%

Ronald A. Young | 3:26 a.m. May 3, 2008

An 11% drop will mean less weak and part time Realters. This is a good thing. For awhile it will become a Buyers Market. Except perhaps Hawaii, but even there with property still going up things will slow somewhat. With 2000 Man Striker Brigade coming in and the Officer Class and Double Dippers wanting off Base Housing plus the normal growth and lack of affordable housing. Also it will be harder to get loans. At least in Utah you have housing to sell that people can afford.

Waiting it out | 7:23 a.m. May 3, 2008

Prices will slide even more than 8%. Banks are not handing out loans like they used. They also require 5-20% down payment on a home. There are not a lot of people that have 5-20% to put down on a $250,000-$300,000 home. I know a lot of people that are looking to buy a decent 3 bed 2 bath home in that range and simply cannot afford it. Most of them make decent livings. Prices are still too high. My home in Southern California has 3 beds and 2 baths along with .25 acres and a pool and I would be lucky to get $230,000 out of it. Yes it is also in a nice neighborhood. Utah has no reason to support such high proces. I expect the prices to continue to drop until the end of 2009. Maybe as much as 30%.

What a joke | 7:37 a.m. May 3, 2008

"I expect we'll continue to have a sluggish first half of the year, but that things will flatten off and sales will start to increase by the second half of 2008,"

It never surprises me that the desnews will get some "real estate expert" to blow some hot air into the Utah housing market. This is utter crap if I have ever heard it. The Utah housing market is not poised to make a rebound in the second half of 2008.

More rubbish

"He said there could be price spikes again next year if the supply of homes is absorbed too quickly. "

Price spikes? We have close to a two year supply of houses on the Utah market. With tight lending standards and a stinking recession on the horizon I really doubt we are going to see a price spike anytime in the next 10 years.

If you want and slanted view of the housing market talk to a Realator who never runs out of "buy-now-or-be-priced-out-forever" dribble.

Price will continue to go down. The Utah housing crash is going to affect a lot of people so hold on.

Comments continue below

bLame Game | 8:15 a.m. May 3, 2008

I don't know what to make of all these statistics but I do know this: it is all the realtors' fault.

tucan | 8:58 a.m. May 3, 2008

Well what do you expect, with all the prices sky rocketing the markets and low incomes salaries, is imposible to reach the dreams of buying an affordable house in Utah.Good Comment Ronald Young.

Anonymous | 9:15 a.m. May 3, 2008

I really hope it gets worst. Not for any vengeful reasons, like watching people lose their homes, but i wanna buy a house and this is a great time. I just want another year and a half of plummeting prices. woo hoo, I vote for recession 2008.

The Real Blame | 10:13 a.m. May 3, 2008

I blame those who bought more than they could afford. The math is at the elementary school level. If you're making the biggest purchase of your life, pull out your calculator and think for a minute. Oftimes, someone who is making money from your business will tell you only what you want to hear. Many of the realtors, brokers, etc. are getting their just reward for their tactics as many are losing their jobs. Fitting but I worry that some of these same people will find jobs in the next "hot" market and regurgitate the "lack of skill" that follows them wherever they go.

RE | 11:06 a.m. May 3, 2008

You negative people. You won't see an overall drop of 30% in Utah, if you think this will happen you just don't know your facts. If you look at the numbers many areas are up in appreciation in our state. The upper end homes are having a tough time selling and you will seem some drop off there, but our market is much much better off then some other areas of the country. May I suggest you get motivated and earn some money and then maybe you could afford to buy a home. Why must you insist on whining about other peoples success while you look for handouts and bad things to happen to others who have worked hard for their success.

If you want it, but it. | 11:25 a.m. May 3, 2008

Rates are good. Yes, inventory is high, but so are the number of peoeple looking for a deal--check out the top investors in the world today, what are they doing? Buying as much real estate as they can while prices are down. That means the vulture ventures have landed. They only land when values are at or near record lows. Surprise, surprise. People go on living their lives regardless. They get transferred, they get promoted, they have more kids, they still dream the dream of a bigger house where they can entertain, they still dream of owning their first home. We're Americans, we believe in owning your own home. Real estate is an up and down business. Smart folks are ivesting right now. What are you doing for your financial future? Buying, planning, or sitting on the fence waiting for the sky to fall? Take advantage of the market, that's how we prosper in this great nation of ours. You can never time a market perfectly. Take advantage while it's a good time to buy. There is never a "perfect" time. By the time you figure that out, the market is already going back up.

This is about sales | 1:13 p.m. May 3, 2008

Not about prices going down.
Home Depot will be closing 11 stores if I recall
Peole will not be spending enough to keep these stores open
Prices at Home Depot will go up as well
Making it cost more to build
People will not give their homes away , so if you are looking for nothing
You will get what you want to pay
Nothing
Utahns are poor people
Republicans
Right to work for nothing at 2 jobs even.

uh huh | 1:15 p.m. May 3, 2008

That's right, "if you want it" and RE!

Buy now or be shut out of the market! After all, the sharks have been telling people that for the last several years and they wouldn't steer anyone wrong, would they?

Buyers Market | 1:22 p.m. May 3, 2008

The reason the market is slow, is that sellers have not humbled themselves and realized that their home won't sell for as much money as their Realtor promised them it would. Lower your prices, humble yourself and accept lower offers, and then the market will correct itself, and the market will speed up. The only reason the market is slow is that Sellers are holding out for a fake amount of inflation "List Price"

Buyers Market | 2:21 p.m. May 3, 2008

This is a buyers market. If the market is to speed up, then sellers need to humble theirselves and realize that their home isn't worth as much as thier Realtors told them it was, and lower their prices. Once sellers are willing to lower their prices and be humble enough to accept low offers, then the market will speed up. Note to buyers, the list price is the price that they really hope and pray that you will offer, but that list price is an artifical price that has been way over inflated. Over 10-20% less and you will be getting a fair value.

Accelerating downward | 2:30 p.m. May 3, 2008

Right now is an ok time to buy if you can weather a moderate downturn. For some people, a 20% drop in their home's value is a non issue because they can ride it out until things recover. But for the rest, a gradually accelerating drop in prices is an ominous sign. A year ago it was plus 20% and now it's minus 1.5% -- what's in store for next quarter (and beyond)? I think a whiplash reversal back to appreciating prices is about as likely as Butters running away to Cancun with Oprah.

Market value and truth | 3:22 p.m. May 3, 2008

It would be nice if you didn't just talk with the president of the realters association for your insights into how the market will or will not turn.

All this story did and all the realtors association is going to do is blow smoke about the inevitable turn around in the falling market...totally based on their own economic hopes and efforts of influening the market.

The truth is there are thousands of empty new homes, way over priced and the prices will continue to drop...until their value equals demand. It has been inevitable to have the bubble burst on their faulty, fraudulent price gouging home sales. This isn't California. Didn't need all the price hikes to begin with. Utahns don't like dishonesty in business. And we don't need to be lied to in print to see the truth of the housing situation here in Utah. Prices will continue to drop until the false inflationary prices match what the homes are really worth. Those speculators better hold on, because it will get much worse before we ever see those prices come back to 2006-early 2007 levels.

to be clear.... | 4:17 p.m. May 3, 2008

There is a big difference in the inflated home prices in these far away, new neighborhoods, and the home prices in established desirable communities, like Sugarhouse, Downtown-Aves and University.

In fact, I believe in those zipcodes, it was just reported that prices *climbed* (granted, only by 1-2%).

The places people never wanted to live in in the first place....they still don't.

South Jordan, have fun out there.

Simple | 6:32 p.m. May 3, 2008

I have followed real estate prices for years now, let me make it simple for you. Income of the community has to be in line with home prices! Home prices will fall until the 2 line up. Based on the average Utah salaries, an average 3 bed 2 bath house in SLC should cost about $158,000. In today's "back to reality lending" prices then need to drop about 25-30% to be in line with solid lending calculations. For those wanting to buy today... I got good news, find any house you want go to the seller offer 20-25K less than the list price. Some sellers will huff puff and growl at you, but many others have no choice and will give you 20K off the list price without much of a fight. My father in law owns a very nice large new home in Draper, his agent told him he would get 450K no problem 10 months ago not even a sniff, then 430K nothing, then 417K nada, now its at 389K.. you guessed it a few looking but not offering. Again if you want to buy chop 20-30K off list price from day 1!

Stewart | 9:10 p.m. May 3, 2008

What home prices do, or not do, is really of no concern if you bought your home to live in and you got the standard 15 or 30 year loan. Nothing has changed, if it isn't for sale. On the other hand if you got a short term loan with nothing down you aren't much different than a renter anyway.

Truly Frightening | 9:51 p.m. May 3, 2008

If an understanding of real estate investment were to be gleaned from the previous postings, the trampoline effect of home prices is of less concern than the apparent abandonment of critical thinking, elementary economics, and functional math within the Utah educational community.

Talk about realtors ripping people off...

Prices are up? | 10:12 p.m. May 3, 2008

percentages are a real tricky thing. It might be possible that prices are up but I really doubt it as there are no numbers that accurately compare what was sold and for how much. I do imagine however people are getting much more house for their money. From what I have seen you can get a lot more house for 220k this year than you could last year. Even better, you have twice as many houses to choose from.

If you can, avoid buying for at least another year. Things will get even better before the "bottom begins to form" If you can't wait, do as Simple above said. Offer 30K or less then what they have it listed for and watch them squirm.

The buyer has all the power now. Use it.

Bottoms Up | 11:10 p.m. May 3, 2008

Can you ever be sure you bought at the bottom? What if it is a false bottom and it goes farther down before it bottoms out? Then who will you blame?

"No, no, no. Not individual responsibility. Anything but that!"

Agreed | 11:11 p.m. May 3, 2008

The buyer has all the power now. Use it. Offer 20-30% less than list price and just watch. they may reject, but the sellers will come back to you soon after they realize that your offer is as good as they are going to get. You can save thousands by just offering less and holding to your stance.

House Poker | 6:30 p.m. May 4, 2008

Buying houses today is like playing a game of chicken. Whoever blinks first is the loser. Buyers may have the leverage but the seller has the house and the bank has the money so they all have to work together to tie up the deal. Soemtimes the realator is the one who blinks and then its like you wonder did everyone see him (or her) do it and who's side are they on?

In some ways I am glad I just rent for now until this all blows over.

Mansell is the a very very very | 8:15 p.m. May 7, 2008

dishonest man. I feel bad about the shame and humiliation he has brought upon his family and friends (if he has any other than realtwhores) He knows darn well there is a big drop ahead. I have gathered, plotted, and analyzed data every single day for the past year and a half. We have at least, I repeat, at least 20 percent more to go.

I can't believe the realtwhores actually have a license plate. I bet they see a lot of middle fingers.

face the FACTS | 7:14 a.m. May 13, 2008

The person that said we have a 2 year supply of homes: SL county has 8 months; Ut county has 13 months. The "overbuilt" market is not 1 homes under 350k; 2 homes that are close to the world. Anyone that thinks you can buy something for less than it would cost to build it needs to wake up. You are missing your chance to get a deal in one of the hottest markets (yes there is still a reason this is the place... #1 economy)

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