Comments about ‘Boom to bust? Housing crisis drops ice on hot Southern Utah market’

All of the speculation from Las Vegas and California creeped in to St. George too quickly.

Why would anyone pay the outrageous prices when they can build for cheaper? It isn't like they are running out of land and there is no where to build.

I see this as a good thing for the market.

Kind of reminds me of Eagle Mountain in Utah County.

I'm one of the "Dumb" people who saw this coming for over two years. I watched the Utah media pump this frenzy. People told me I was crazy and that Utah is "different".

It's going to get worse and the prices of the past will not be seen again for SEVERAL years, if ever.

Oh, and if the bubble prices return, gas will also be 6 bucks a gallon. In other words, the bubble prices will NOT return. The debt bubble has popped! "Get out of debt", now where did I hear that?

Housing speculation and unscrupulous lenders have caused this problem throughout the country and it has been alive and well in Utah, especially in Southern Utah.

Hopefully we all have learned something from this tragedy. Pumped up housing prices have made life difficult for people whose salaries haven't risen with housing prices. Some can't stay in their homes, or now can't sell them except for a loss.

It is sad.

This fall in prices is essential for the middle class to be able to afford a home that isn't going to saddle us with huge debt-to-income ratios. The politicians want to get involved and fix the problem with subsidies, etc. That only helps the lenders to keep the loan amount high while the value of the home plummets. The only thing the government should do about this housing crisis is to protect the credit of those whose homes are foreclosed. That would allow the market to fall to where it needs to while allowing those buyers hit by the fall to still have an opportunity to buy when the prices get low enough. The median home price in St. George cannot continue as high as it is even now. People cannot reasonably afford a home. Let the prices fall.

The mkt will come back.

Now if you would take notice at real estate mutual funds year to date, they are one of the few areas of the market that are positive.

Why?

Because people get over zealous then buy after things get hot then when the mkt crashes out on them they sell low.

Now is the time to buy.

Soon you might have already missed it!

This article quotes, "'Before, I could qualify nine out of 10 applicants. Now, I can qualify one out of 10,' [a loan officer] said. 'You have to have a big down payment and really good credit to qualify for a loan now.'"

The fact that for so long banks and lending companies told a family making $45K/yr (with Utah's depressed wages) that they could easily afford a home priced at $300K or more, and the fact that the people bought into this, is the problem. It's sad many families are upside down on their mortgages, but what can you expect when you buy a home you can not afford?

I, for one, am happy lending companies are cracking down. As a country, we have decided we don't need to "save up" to buy anything any more. We just buy it and pay for it later. Our government operates in the same manner. Because of this mentality, our economy is on a down turn and getting worse.

There have been many who've told us to get out of debt, from financial advisers to religious leaders. Isn't it about time we listen. If you can't afford it, don't buy it.

To the previous comment: What are you talking about when you say "That only helps the lenders to keep the loan amount high while the value of the home plummets" That is what makes banks loose money and makes them not want to lend which equals tighter lending standards.
The other comment: "The government should protect the credit of those whose homes are foreclosed" are you being sarcastic?

I don't think that material for housing really escalated like people think but take the price of land and where it went. That is now the issue if the builders have purchased land at a high price how can they afford to build that smaller priced home. It isn't because they don't want to it is because the land they just bought can not be de valued

Prices have a lot further to fall before this crisis is over. I want to buy a home in St. George area but I won't touch one until prices fall another 25%. Too many people bought at the height of the market and still expect to at least break even on their investment. They have lowered their prices some, but are still clinging to the hope that the market will recover quickly.

Welcome to the real world. Stocks bought at the top of the .COM bubble in the late 90's fell more than 50% (if you were lucky). Why shouldn't home prices do similarly?

I called on a building lot for sale last fall. The owner wanted $350,000. I laughed out loud (not to be rude, but I just couldn't help myself).

You misspelled your "name". You meant to say "Realtor".

The only people who say "now is the time to buy" are realtors and people trying to sell their homes.

Anyone who buys now will see their investment fall another 20% or more once sellers realize the only way to compete with the foreclosure market is to drastically cut prices.

We live in SG and just upgraded to a bigger home. Down markets are a great time to upgrade. We were lucky because we had been conservative from the beginning... eventhough we could have "afforded" more, we owned the smallest home on the street in a very nice area... there were 6 homes for sale on our street when we put ours up for sale in March. One of those six has been on the market almost a year. We were able to ask a reasonable price and sold our home for cash within 2 weeks of putting it on the market.

I'm so glad we were conservative in the beginning by putting down a good down payment and buying something small. We needed to upgrade to something bigger (really a need, not a want) and were lucky to be able to do it in this down market.

It was interesting reading in the article about those who are involved in the construction trade who built homes too big and now can't afford them or don't have work... the 6 homes for sale on our old street... 4 or 5 in that exact situation.

No formal education needed to see this was going to happen. Just drive around anywhere you want to in Utah and any other state and look at the homes, then look at the cars, trucks, Suv's, RV's, and many other toys with kids running all over the place. I personally have a very inexpensive residence in Washington county and a small home in northern Utah, but do you know what I don't owe one dime on either--SWEET SWEET. I live and have lived within my means, not the come my whole life. This whole adjustment will be good for everyone including the spoiled rotten young generation. Get a clue people, homes, vehicles, and toys don't make you better than your neighbor, or friends. Try living within your means for a change and put your life priorities where they should be.

I think this trend will occur in northern Utah as well. Utah is NOT "different"! The same market forces that have brought down the market in other states(houses prices higher than median wages can afford, record forclosures, record listings, increased gas and food costs, etc.) will catch up to Utah. Now is a good time to buy but it will be better in a few more months.

Growth is grinding to a halt as speculators leave Southern Utah yet the state wants to forge ahead with the Lake Powell Pipeline and saddle Kane, Iron and Washington counties with massive debt that is supposedly to be paid by "newcomers." The state will either end up having to bail out these counties to fund the pipeline or there will be massive property tax increases ahead for existing residents of the area. Everyone hold on to your wallets, this is going to get ugly.

We are already seeing the bottom of this. Prices in St. George have been flat and even slightly increasing for the past two months. The "deals" of six months ago are becoming more rare as the inventory begins to sway back into sync with the demand... which is ALWAYS present due to the climate and attraction of the area as a senior retreat and retirement mecca.

Those building lots that were 350K two years ago are now 280K and will be 400K two years from now.

This is a good time to buy.

Boy, you can cut the smugness on this site with a knife. Oh wait, this is D News. Nevermind!

Dear "Investor"

In my opinion this is wonderful news. Utah is NOT different and we now are seeing the fallout from the greedy builders, buyers, and brokers. I hope they all get what's coming to them.

To "Investor" above. This is far from over. We have at least two more years of this before we might begin to see a bottom. Then several years of no gains at all. Building lots will not be 400K in two years.

If anybody tries to tell you to buy now run away. They only have something to benefit from it if you do.

Investor, I think you are drinking the koolaide shipped in from California. No way will that lot be 400k 2 years from now. The market can't support that.

I agree things will probably bounce back, but it is going to take time. Another Jimmy Carter presidency on the horizon won't help things either.

Why would you say we are not running out of land? Good Grief! We are selling off our farm land and we are running out of water very quickly. Living in the desert with your big house, big lawn and big bills.
Our home is paid for (took me 5 years to pay it off), summer home is paid for (paid cash), and a 3rd home in Monterey,CA was a very good price and has a decent mortgage rate of 4.75%. I also believe in paying my credit card off in full each month. Kids are through college and none of them has a student loan to pay off. Stop trying to beat the Jones' needing bigger and better all the time. You people got into to this mess and now you can feel what it was like for your grandparents to go through the depression.
Oh yes, I am 52, retired.

St. George is horrible for greediness and worldliness bigger and better houses just to show off to others what they have! I am happy the housing market is the way it is!!! I hope more and more of these greedy young people get what they deserve! They think that they need 3X's the house now that their parents took years and years to be able to buy!