Deseret News | Some Utah housing priced beyond means

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Some Utah housing priced beyond means

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As I llok to seel and BUY | 6:08 a.m. May 21, 2008

I do not find homes that are less than 1/2 million dollars?
So who is buying these homes
Realtors always want you to sell for less
No realization about you buying another home
The cost of Materials are not cheap
How can you sell for less than it cost to build a home?

Anonymous | 6:39 a.m. May 21, 2008

How can you sell for more than someone will pay?

At home in Kentucky | 6:54 a.m. May 21, 2008

We were alarmed at the price of housing in Utah County and wanted more affordable housing for our children. We were delighted to find a wide selection of very affordable homes on acreage near Louisville, Kentucky and across the Ohio River in Indiana. Regional hospitals, regional malls, colleges and universities, sporting events, horses, convenient access to airports also add to the quality of life here. The LDS temple in Louisville is within an hour's drive from many attractive neighborhoods in both states. We love it here and look forward to our children being able to buy affordable well-built homes nearby. Y'all come and visit to see for yourselves!!

(Note: I am NOT a real estate agent, real estate developer, or involved in the travel industry.)

Comments continue below

Anonymous | 6:58 a.m. May 21, 2008

This is why Utah is going to have to adjust. I know, that's not what realtors are telling you. Their paycheck depends on you buying.

Utah will probably not hurt as much as other areas. We'll probably only take a 20% - 22% dive overall and that's not so bad! Hopeful renters saving all they could for their downpayment sat and watched in horror as home prices mutated 20% per YEAR over multiple years. So it pretty much breaks even. Once Utah makes it back to affordability and those priced-out savers are allowed off the bench, we can have our market back. It's going to be OK! Just keep saving and don't let a realtor tell you now is the best time to buy. Their paycheck is bigger when you believe them. Just keep that in mind!

Price differences | 7:16 a.m. May 21, 2008

Then why is the same house in the midwest $200,000 less than what you would buy here? and the house is on a 1/3 of an acre.

DD | 7:46 a.m. May 21, 2008

The skyrocketing prices in Utah are ridiculous. We bought our first home in Highland (a modest 1500 sf rambler w/unfinished basement) for $97,000 in 1995.

I've heard that the home along with several others is going to be demolished so they can connect SR 92 with the freeway by expanding 4800 W.

Now I don't even think you can buy an empty lot in that area for < $200,000.

Houses might be affordable in Ogden, but who in their right mind would want to move into the middle of a Hispanic gangland? My sister in law used to live their and they weren't able to find a public school that taught Kindergarten in English anywhere near them.

Anonymous | 7:51 a.m. May 21, 2008

A house is only worth as much as someone is willing to pay for it - Not the asking price.

Grammar Check | 8:02 a.m. May 21, 2008

Uh DD... You might want to see if you can find a Kindergarten that teaches English grammar. "My sister in law used to live their!?" Your loose grasp of the English language is almost as offensive as your racist comment.

Welcome to UT | 8:23 a.m. May 21, 2008

So many stories published in the business section of Utah's newpapers over the past few years tout how we have a well educated workforce who essentially works for peanuts as compared to the rest of the country. If and when Utah (public and private sectors) starts paying its citizens a decent living wage, they will be able to afford a house here. Citizens should be voicing their anger and frustration towards changing the low-wage arena that permeates this state.

Jim Casy | 8:41 a.m. May 21, 2008

I live in Texas which is also quite affordable. Note to DD at 7:46 a.m., please refrain from racial mudslinging even though you are frustrated.

to: DD | 8:55 a.m. May 21, 2008

Dido, house prices are way to high. I make well above the median income and I am renting a basement because I can only afford to buy a townhome. Prices will crash in the fall. The same thing happened to the rest of the nation last fall and Utah laggs by about a year. Every honest and experienced real estate agent I know is telling me to stay out of themarket. All the other unexperienced real estate agents are telling me to buy now or you will miss out. It doesn't take a rocket scientist to figure out that prices are to high. BTW I am a rocket scientist.

Would be buyer | 9:24 a.m. May 21, 2008

I think they should check the facts before they post an article. I just moved here from Long Beach, and the article says that mediam income is higher in Orem than Long Beach (LA). That is far from the case. That does not make homes any more affordable, but I took a large pay cut to come here, and I know the median wage is more in LA area. Homes are over priced in both areas, so it really does not matter much. I am looking to buy, and have been watching the market for about a year now. Prices have only gone down, and with affordability still out of whack, not to mention the reduced ability to pay for a home because of escalating prices of food, utilities, gas, and all other living expenses, home prices will continue falling. I will keep watching and waiting. Nobody in their right mind would pay these prices, and the economics of it all say prices will only keep falling. I hope they fall flat on their face so everyone can get back in on level ground. If you flourished during the boom, hopefully you saved some and didn't live beyond your means.

to grammar check | 9:26 a.m. May 21, 2008

What is racist about wanting your child to be educated in the English language as a citizen of the United States?

re: Welcome to UT | 9:38 a.m. May 21, 2008

What are you talking about? Did you not read the article. The median household income in Ogden is $65K, Salt Lake $65.3, Provo $60K and Los Angeles $59.8K. So according to the article Utah is already paying more than people in LA are making.

So what exactly are we supposed to be voicing are anger about? The fact that we are making more money than those that have to live in LA? The fact that you can't manage your finances? Or the fact that you can't afford to have the biggest house on the block and afford all the toys to go with it.

It is just like buying a house. If you don't like the price, don't buy it. If you don't like the amount of money you get paid in Utah, move!

To DD: | 9:40 a.m. May 21, 2008

Your sister in law didn't look very hard in her search. There are actually no all-Spanish schools in Ogden. If she didn't recognize the language, it's probably because she has a weak command over the English dialect. A few olive-skinned kids in the classroom might feel overwhelming to a bigot, but otherwise I think most people would recognize the language spoken as English. Unless you are pure Native American, you are a descendant of immigrants to this country yourself--foreigners who barged in, killed the current citizens of the land and stole it from them and then changed the language to English.

Utah already has a problem with the greed and entitlement associated with exorbitant housing costs. Please don't add ignorance and intolerance to that list.

Perhaps we should all | 9:41 a.m. May 21, 2008

just wait until prices become affordable again before we buy. Oh wait, wouldn't that just cause prices to shoot right back up?

Travis | 9:41 a.m. May 21, 2008

Realtors get too much time in the papers and on the news. Consumers buy houses and they aren't ready for this awful market. I just bought a house and I think it was a mistake. We have a long way to fall...Look around at those condos near you (they are everywhere). They were supposed to be finished in October, but they aren't half way done because people aren't buying.
The longer real estate agents hold out for high commissions, the harder we all will fall.

jim casy | 9:44 a.m. May 21, 2008

how is it racial mudslinging for someone to want their own child -- a United States citizen to receive an education taught in English?

DD | 9:53 a.m. May 21, 2008

Stating facts about what life is like in Ogden is not racist. My nephew spent his first day of Kindergarten at an Ogden public school as the only English speaker in the class. The entire class was taught exclusively in Spanish. He came home from school in tears. His Mom called the school and was told that the school didn't have a single Kindergarten class taught in English. The parents had to find a school across town and drive their son back and forth every day, until they were able to move out of Ogden.

With all of the gang-related problems taking place in Ogden, it is ridiculous to deny that there is a problem. The relative cheap housing there makes it a very attractive area for the thousands of illegal aliens arriving in Utah.

kw | 9:56 a.m. May 21, 2008

It's true you can't sell for more than someone is willing to pay.
Anyone who is smart will just sit back and wait until the sellers understand this and then they can buy the home for the price they want.
I don't think that lenders should have ever extended loans to individuals with bad credit, small pockets and big eyes.
I blame them for putting us into this housing market situation. Let them learn from their mistakes. It wont last very long, eventually they will have to drop their prices to get out before they loose everything.
Wait until the banks start foreclosing on all this expensive homes, then people will be able to buy them up for reasonable prices.

positive changes | 9:59 a.m. May 21, 2008

On the negative Ogden comment,
Ogden is actually in the middle of a huge transition of its downtown area, their are seven major ski companies that have moved into ogden area, creating a demand for nice housing, you can drive through the downtown area and feel the change, negative comments Dont assist any situation If we all look for the positive things will change for the good..........

SL Mom | 10:01 a.m. May 21, 2008

I don't understand why people are claiming that Utah is expensive. We've found it extremely affordable. 6 years ago we built a pretty upscale 5300 sq ft house on 1/3 acre in the south end of SL county for only $380K. Very nice & safe area. It was a steal! In many other areas of the country, $380K wouldn't have gotten us anything even remotely as big or nice. Now w/ finished basement and full landscaping we could supposedly sell for around $600K. It's still a steal.

To: to:DD 8:55 | 10:03 a.m. May 21, 2008

You are way TOO much of a fool if you believe anything short of inflation. Have you seen diesel gas prices lately?

Just who do you think is going to pay for all the gas that goes into government vehicles (school buses, snow plows, military vehicles, etc)? It's called taxes and buddy, they're going up - WAY UP.

Mark my words all you pessimists out there - HOME PRICES ARE GOING UP because everything else does.

By the year 2010, you'll be paying $6-8 for gas and that $200k in 2008 home will be worth closer to $300k becuase of all the increases in lumber, cement, etc, etc.

Doubt me? Go ahead and rent. The world needs a lower middle class anyway.

p/o

Gus | 10:05 a.m. May 21, 2008

Out here in southern California (Orange Country), prices are just starting to decline. But we're seeing $12,000 declines each month on 3 bed 2 bath townhomes that were going for $580,000 last year. Now they're going for $430,00 or so, some even down to $399,000. I cashed out of my first condo on just as the market peaked and it makes me so happy to be renting now. We're hoarding cash so that we can get into something in about 8 months or so at a rock bottom price. Can't wait.

Re: Welcome to UT | 10:08 a.m. May 21, 2008

I moved to Texas because they offered me a high wage compared to the offers in Utah. It's called supply and demand. A company in Texas needed my labor so I supplied it.

People in Utah can yell and scream all they want about low wages but until more Utahns show a willingness to move to other high wage states, the employers don't need to pay higher wages.

Just look harder | 10:11 a.m. May 21, 2008

You can find houses that are within your buiying power, you only need to look more and harder. We need to buy these to support the market and not hurt our economy more. Also, as was stated above, its not that our houses are priced too high. Its just that our wages are too low in Utah. We all need to push to raise our wages here in Utah, and then the housing prices will not be too high for the average purchaser.

Anonymous | 10:24 a.m. May 21, 2008

DD:
Run away, Run away... The Brown skinned hordes are coming!!!

michael | 10:41 a.m. May 21, 2008

Know your facts. Over about the last 100 years the price of realestate in Salt Lake has apreciated at about 7% a year for any 20 year period on average. Meaning If you need a home / condo than buy one. The cost of renting has gone up $15 a square foot in the last year. Many of you must live in your moms basement and not pay rent. To rent a home in salt lake that would sell for $250,000 would cost you about $1100 - $1500. You could buy that same home out right for about $1500 - $1700 depending on your qualifications. Any extra money you would spend to own versus rent you would get back in tax breaks. Utah's correction will be and has been propotionate to the our gains. The landing will be softer than experienced in Las Vegas or Phoenix because our gains were not nearly as substantial. Just do not bight off more than you can chew and you will be fine.

To Just look harder | 10:44 a.m. May 21, 2008

Why would you want prices to stay high? That means not only will house prices be high, but taxes, insurance, commissions, fees, and everything related will be high. There is a reason prices are falling. People cannot afford them. Prices on EVERYTHING have basically doubled in the last few years. Wages are simply NOT going to double, and if they did, I would still want prices to fall so I have more discretionary spending money. We do not need to over pay to support an economy that is fluffed up and artificially high. We need the government to get their nose out of things. They (and the federal banking system) are the reason for this whole mess, and until they quit messing around it will not get better. We are headed for trouble, and the sooner we can take our licks the sooner we will get back to normal. Prices are absurdly high, and I am not going to support them just to be 'patriotic', idiotic, or for any other reason. When people cannot buy, prices will fall. They are currently falling because everything has gone out of control. They will fall until things get back to order.

To: 10:03 a.m. and their hernia | 10:51 a.m. May 21, 2008

"HOME PRICES ARE GOING UP because everything else does."

Sorry, they can't. There's nowhere for them to go. I agree that inflation is quite active right now, but home prices did about ten years' worth of appreciating in about three years. It doesn't matter how much lumber costs. If a buyer can't get financing, nobody's buying that lumber.

The world needs a lower middle class? HUH??? And how does renting create that?

You are going to be OK, just calm down. Wow!

Simon Says | 10:52 a.m. May 21, 2008

I recently bought a home on $50K a year. It was under $200, on half an acre, in a really nice safe area, on a dead end street, but it needs some TLC. It can be done if you don't have what I call the "Utah Curse" - i.e. must have big house, new cars, lots of toys, perfectly manicured lawns, LOTS of debt, so that I can look good to those around me. Who are we fooling? Utahns are in such debt that it baffles me. I am constantly amazed at the materialistic attitude of so many GOOD people here.
That said, and before someone tells me to leave if I don't like it; I love living in Utah. The people are friendly, and welcoming. Just amazed that so many will complain about the price of things, when they have all sorts of nice, but unnessesary toys in the garages and homes. Stick to the basics - you don't need 4 cars, 3 ATVs, a boat, sit on lawn mower for a small yard, new furniture every 3 years, etc.
BE gratefull for what we have - freedom and liberty, it's a wonderful blessing.

Buyers Market | 11:00 a.m. May 21, 2008

Buyers need to offer 10-20% less than list price on these homes and stay stubborn! Don't fall into the trap and pay too high. If not you will loose. The list price is just the price that the sellers are hoping and praying they will get. Offer them a low ball offer, and they will have to take it. Or else their home will sit on the market for another year. If they say no initially, they will come back like a dog to his vommit and beg you to re send an original low ball offer. Help the market correct itself by not paying any where near the list price.

Naha | 11:17 a.m. May 21, 2008

Hey DD thanks for the info. "Hispanic gangland" - Bet you still don't get it. No wonder there are so many racial barriers to overcome.

Bryan | 11:42 a.m. May 21, 2008

re: SLMOM
$380K is a steal? What world are you living in. There is no way a family starting out could afford that and there are very few homes in Utah they could right now. How many times do you drive by a new home and see no furniture or anything else in them. If you think that was a steal you must have sold a home in SoCal and moved here.

Anonymous | 11:44 a.m. May 21, 2008

This is ridiculous. DD is over there whining about latino gangs in Ogden, (give me a break) and everyone is upset because a house costs 3-400k. If you're really making 60,000 per year, you can easily pay that off with a 30 year loan if you live within your means. I guess that is just too much to ask for some people.

The average home price in most southern california cities is close to 1 million (yes, after the markets fell), and our incomes aren't much different from yours.

And if you want to talk about crime rates for a minute...

Ogden | 11:53 a.m. May 21, 2008

Just to clarify about Ogden:

I taught at a Middle School in Ogden for two years during the late 1990's. At that time, approximately 40% of our student population spoke Spanish only. I'm not saying that it was a bad thing--it was just the way it was.

Anonymous | 11:54 a.m. May 21, 2008

Of course the run-up in prices has put housing beyond the means of Utahns. THAT WAS ALWAYS THE IDEA. That's why homebuilders support ever more massive amounts of illegal and legal immigration - not because their labor makes housing more afforable, but because it drives up demand and thus profits for themselves.

Simply put, if you have annual double digit increases in home prices, how would that not put housing out of the reach of ever more people? They're not getting similar increases in their paychecks.

Open your eyes, folks. The Chamber of Commerce and all the businesses supporting ever more amounts of immigration ain't in it for charity - they're in it for the money. And more immigration means more filthy lucre.

To michael | 12:01 p.m. May 21, 2008

True, but why buy today and "be fine" when I can buy next year cheaper? Would this make me "finer"? I agree we will not hit as hard as some other areas (although I wish we would), but we will still experience a decline in prices. This is already underway. Also, where did you get your #s of 7% appreciation for the last 20 years? If you include the absurd run up over the last 3 years then I can agree, otherwise Utah usually lags in price appreciation. I think (I do not "know") that average national appreciation is 5-6% annually. That would put Utah at 3-5% average. If you are going to post facts, state your sources so they can be verified. I do not know, but would like to find out. Either way, without counting the last few years appreciation (of which much will be wiped back out following the correction), I don't beleive that Utah has averaged 7% annually. Try this: according to Zion's bank "calendar year 2003 saw Utah homes rank dead last in the U.S. in average price appreciation." Of course, they have been among the best since, but typically we are at the bottom.

lowonoil | 12:08 p.m. May 21, 2008

Watch the documentary "The End of Suburbia" before you even think about buying a house. Find out why suburban homes are only at the beginning of their long decline in value.

Consider that the film was made in 2004 and compare it's predictions to what has actually happened in the four years since.

Swarly | 12:29 p.m. May 21, 2008

With the dollar dropping and high fuel prices, almost every material is quickly increasing in price. You may be able to see a drop in existing home prices, but new houses will cost more and more to build and you shouldn't expect new houses to drop drastically in price.

Most of us are buying a home to live in, not as speculators or trying to make a quick buck. Find a house you can afford and buy it. Live in it for a long time and everything will be fine.

To Jim Casy | 12:47 p.m. May 21, 2008

Considering what you Texans are doing to the FLDS, you are hardly in a position to be passing moral judgment on anyone. The fact is that diversity brings baggage as well as benefits. Ogden has had a couple of gang-related incidents during the past week.

But only a small part of Ogden is "bad".

To Anonymous and Grammar Check | 12:59 p.m. May 21, 2008

You people get on DD because he/she refers to the problem of Hispanic gangs in the Odgen area and you throw words at him/her like bigot and racist. YOU'RE THE PROBLEM IN THIS SOCIETY!! Every time someone puts a fact out there you people claim racism. The facts are facts. People get SO tired of racism claims at every turn. Your constantly claiming racism when it's not racism, promotes racism. Also, the word their is often misused in place of there and vice-versa. Many people make that mistake so get off you high horse and quit making claims about non-existent and/or irrelevant things. YOU ARE THE PROBLEM!!! Your ignorance is the problem. Claim racism and bigotry when it exists, not otherwise.

Wages... | 1:01 p.m. May 21, 2008

Well then wouldn't it make sense to raise wages in Utah, as the pay is truly horrible? How can you expect to have median home prices raise, fuel and food raise, but the wages are never up to par? Get a clue, Utah!

get educated | 1:22 p.m. May 21, 2008

I am sick of people who are not in the industry talking like they know. Unless you are paying cash for a home you need to weigh in more than what the home will cost you. Take into account what interest rate you will pay also. You could wait to buy if prices are lower but if rates are higher (which they most likely will be) then you will probably pay more for your home in the long run if you were to buy now. Fact is it should be an individual choice on when to buy, but at least find a good realtor and loan officer to help you make the choice. Dont beleive people who think they know because they are a rocket scientist.

Chris | 1:29 p.m. May 21, 2008

As someone who still has a house on the market in TN, I will chime in and say the home prices here are still overpriced. We were asking 124K on a 2400 SQ FT home with 5 bedrooms. 9 months later we have it at 94 K, and even if we were able to sell it at that price..we will be upside down on our loan.
Looking in Utah county now, where my hubby works, the same size home of that in TN is Approx 265-299K. We were able to lease our home in TN, and have made an offer on a home that was origionally last year offered at 365K and now is at 279K. So, our morgage payments on a similar home of that in TN, same down payment, close to same % rate will be roughly 520 dollars MORE a month. We could try and find something in that 120K range. If we want to cram 7 people in a 2 bedroom duplex in south Provo.....

A Little Bird | 2:03 p.m. May 21, 2008

Most of you have no clue where this economy is going. There is price inflation in basic needs like food and fuel but price deflation and unwinding of leveraged assets like housing. We are in the unwinding of a massive debt bubble. Government statistics are lies.

Those of you who think housing can't go down below the price of materials don't know my neighbor. He put 20,000 in engine mods and body work into his Honda Civic and now he can't sell it for the price of his parts and labor. The MLS sits near 23,000 listings up from about 10,000 a couple years ago. There is an OVERSUPPLY of EXPENSIVE housing in Utah. In economic downturns people move in with relatives and make many other moves if they can't pay for a house or pay rent. The prices WILL continue to fall.

As this develops people lose jobs. How many mortgages can an unemployed person carry? The shuck and jive show the the Fed has orchestrated since Jan 22, 2008 is unravelling. Batten down the hatches.

No Blood from a Stone | 2:08 p.m. May 21, 2008

get educated,

I am educated enough to know that if people can only pay so much, and interest goes up, house prices have to go DOWN.

Anonymous | 2:31 p.m. May 21, 2008

Don't forget all the exurbanites desperate to unload their new starter castles for whatever they can get in order to escape from the crushing burden of the fuel bill from their epic commutes.

Anonymous | 3:54 p.m. May 21, 2008

The poor, dumb people of Utah haven't figured it out yet that they are just bees working for the bee-keeper in the Beehive State.
Never seen such repressed wages anywhere.
When they tax your food - you aren't paying attention.

Reply: Get Educated | 3:56 p.m. May 21, 2008

I completely agree with you and I am so glad you posted your comment. While it is so easy to complain about the situation the US has found itself in, few people have been able to get past that to find solutions that help them. It's so easy to blame problems on the government, your neighbor, the "racist" commentor, etc. If only more people would take accountability for their own actions instead of trying to find anything or anyone to take the blame for them... What state would this country be in if that were the case?
Interesting...

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