Deseret News | Utah's home prices tumbled in 2nd quarter

Reader comments
Utah's home prices tumbled in 2nd quarter

Marcos | 2:06 p.m. Aug. 25, 2009

Property tax officials, take note.

Typical trend | 2:33 p.m. Aug. 25, 2009

We tend to lag the national real estate market by 6-12 months - this shouldn't surprise anybody.

Wondering | 2:35 p.m. Aug. 25, 2009

"Only one of the Beehive State's five top metropolitan statistical areas saw appreciation in the seasonally adjusted purchase-only index based on data from home sales."

So, which one?!

Comments continue below

Ken Goddard | 5:44 p.m. Aug. 25, 2009

Title is a great play on words where more people might read the article.

This is great news! | 9:04 p.m. Aug. 25, 2009

It also shouldn't surprise anyone that the Utah housing market has a long way to go before median home prices are much more in line with median incomes.

Thankfully, this much needed correction will continue through much of, if not all of 2010.

All hail the correction.

Brandon | 1:51 a.m. Aug. 26, 2009

Take that! you nasty spec home builders! Let the bloodbath continue. It is about time.

give it back | 2:42 a.m. Aug. 26, 2009

My home tax assessment increased this year,
my tax letter still sits on the desk.

The value of my home has dropped twice the rate of my tax increase.

My protest and demand for reduction is being prepared at this time!

Why should I have to give money for no value?

Raise/Add taxes. | 5:15 a.m. Aug. 26, 2009

Here it comes again, more and higher taxes. Regardless of the job market or more slave labor jobs the economy will take many years to stabilize let alone get any better. Not only has home values dropped and still dropping so is the rest of the economy and incomes of the working american. Recovery? Look for a slight rise in about 5-10 years, that is if wages get any better.

And stop calling it consumer confidence, there is no confidence or jobs paying well enough in Utah to even think that will help.

what about the home run grant? | 8:10 a.m. Aug. 26, 2009

the article failed to recognize the effect the state home run grant has had on home sales. the 7500 credit to buyers of a new home or condo has fueled the condo sales this past quarter, giving inaccurate numbers. condos increased in price and sales and condos are cheaper than traditional housing which make average price of homes sold decrease. with the home run grant ended, we should see more accurate numbers this next quarter. no need to panic.

Vern | 9:03 a.m. Aug. 26, 2009

Interesting information but it needs to be put into context as the writer makes an unsubstanitated assumption. Changes in the median sales price of homes indicates which is selling better, high price homes or low price homes. It is not a measure of the value of homes nor trends in the market value of homes.

For example, a home may have sold for $1,000,000 a year ago and recently was sold again for $500,000. This is a 50% loss of value but if the recent sales price is still above the median sales price, this measure (median sales price) shows no difference.

The only accurate way to measure the market is to track multiple sales of the same property and adjust for changes in the property which would affect its value such as finishing the basement, landscaping, additions, remodeling, etc. Tracking such changes of hundreds or thousands of homes along the Wasatch Front will provide an accurate measure of changes in property values.

oracle | 9:04 a.m. Aug. 26, 2009

bad and getting worse...the median sales price has fallen 9 percent, with another 30%+ to go.

Scary people | 9:08 a.m. Aug. 26, 2009

"Let the bloodbath continue?!" "All hail the correction?!" Yikes! Who would take delight in the misfortune of others?

Yes, more affordable housing is certainly good news for some people, but my sympathies go out to current home owners, and those whose families are negatively impacted by this economic swing.

As for taxes, if families have to tighten their belts and make do with less in this economy, our elected officials shouldn't feel like they are above making sacrifices doing the same.

Earl | 9:41 a.m. Aug. 26, 2009

What is bad news to some can be good news to others. The Greenspan real estate bubble led to the overpriced market. Prices should come down to their pre-bubble levels if we expect the correction to have a positive effect on the economy.

Not That Bad... | 9:55 a.m. Aug. 26, 2009

Sure prices are declining, but if you look at it with a greater perspective from 2004-2009 we are still up 28%. All this means is the prices were too inflated to begin with, and they are just correcting themselves.

Thanks, Vern | 10:03 a.m. Aug. 26, 2009

Thanks, Vern, for your intelligent addition to the discussion.

In reality, the housing numbers referred to in this article are almost meaningless for the point the writer stretches to make.

Apparently the DN comment censors seem to think comments such as "All hail the correction" and "Let the bloodbath continue" are not unduly cruel to some Deseret News readers and are therefore fine to publish.

So hopefully the censors will likewise allow publishing of a comment reminding people that while more affordable housing is certainly a blessing to some people, there are likewise others who are harmed by this economic swing...

Including nearly everyone who moved to this state in the last 5 years and was forced to pay the market rate for housing.

Not everyone hurt by declining property values is an evil spec builder. Many are just families who came to Utah thinking we would find a nicer living environment for our families.

Anonymous | 11:23 a.m. Aug. 26, 2009

Is anybody surprised?
The reputation of Utah being the "reddest state in America" would keep anybody from buying a home in Utah.

Anonymous | 11:44 a.m. Aug. 26, 2009

Not EVERYONE sees this as a bad thing.

BH | 12:22 p.m. Aug. 26, 2009

Utah real estate value has been overinflated for many years, especially when you consider the ratio between Utah houshold income and mortgage payments.

At some point in time an adjustment was needed. Will there be some that suffer? Perhaps. But not as many as my be thought.

An individual selling a home in Utah and buying another home in Utah, may realize a loss on the sale, but should also be able to buy the new home at a lower cost, offsetting the loss proportionately.

Someone selling a home in Utah and moving to another state, with more moderate housing costs, will just not enjoy as much of a perk as they would have a few years ago.

The most obvious loss will be those trying to refinance, needing an apprasial. Particularly, those who overextended on a purchase in the first place, having little or no equity in their property. They will pay the price of poor decisions.

But if you don't have to sell, stay in your current home. No loss will be realized unless you bought high and sell low.

Recent Transplant | 12:41 p.m. Aug. 26, 2009

I am glad that This is Great News is happy that some of us are really hurt by this change. My Company transferred us to Utah about 2 years ago which means that we had to pay top dollar for a house. Now that are talking to us about transferring us again. Unfortunately, that house I purchased 2 years a go, and will try to sell in the next 6 months, is worth about $40,000 less than we paid for it.

Maybe This is Great News can afford to take a $40,000 loss and be cheerful about it. I know I can't.

There are real people being hurt by this and some of us live within our means and don't take out home equity loans for vacations, etc. We don't live in a home that is larger than we need. In fact, we are short by one bedroom.

So knock off the platitudes rejoicing in other's misfortunes. You come off as one who hasn't invested in a home and are paying rent hoping to get a bargain some day.

Home values fall. | 1:16 p.m. Aug. 26, 2009

For most of us when home values fall the taxes will go up. It only benefits the high end homes taxes, the typical homes taxes will increase. Wait until next year, if values keep falling you can expect at least a 30- 50% increase on your taxes.

Ahem | 2:32 p.m. Aug. 26, 2009

Buy low, sell high. Silly people.

Low value ≠ Low taxes | 2:51 p.m. Aug. 26, 2009

As property values go down, we've got to watch our politicians even more closely.

Reduced property values will cut into their slush funds. They believe they need more, not less of our money.

Their only solution is higher taxes.

Ask the people in Jordan School District.

Anonymous | 3:00 p.m. Aug. 26, 2009

We bought in 2004 for $330,000 on a 4,000 sq/ft home.

The market in our neighborhood has come down to $450,000 - $425,000 now. It was once up to $500,000+.

That would still have to drop a long ways to get back to 2004 prices.

I have a neighbor that has been renting since 2004 saying he is waiting for the big drop.

Somehow I don't think he will ever see it get to pre 2004 prices and in the meantime he has paid more for rent with nothing to show.

I guess that is better than the people that bought in 2008 and now owe more than the home is worth but how long does he wait?

Anonymous | 3:21 p.m. Aug. 26, 2009

I think we will bottom out in the next six months.

Try to Refi | 4:38 p.m. Aug. 26, 2009

The problem that people run into is wheen they go to refinance as well. Everytime a home sales for less and less you are impacted directly. I have a house in my area that is on the market for 219k, my house even through this mess 6 mo's ago was appraised for 270. So if you even have a home at 80% ltv, if you try and refi you won't be at 80% so you can't take advantage of the good rates.

American Citizen | 4:57 p.m. Aug. 26, 2009

There are a lot of housing bargains if you are willing to work.

Foreclosed trashed houses are for sale cheap. The bank owners will be your new best friend if you will buy one. If you don't have home improvement skills, read up on them in the library and go to the saturday morning classes as the home improvement stores.

You'll probably earn more in appreciation of your property than you'll be able to save from your job.

I've done it. It works.

Jorge | 5:03 p.m. Aug. 26, 2009

Dear Anonymous: I wouldn't imagine that color-blind people who can't recognize red would see it as a bad thing.

Falling prices = real recovery | 6:35 p.m. Aug. 26, 2009

I have yet to read a story about a mortage originator putting a gun to anyone's head and "forcing" them to purchase a home.

People purchasing homes during the "Great Illusion of Prosperity" obviously liked the homes enough to pay the asking price, no matter how delusional it was. It was their decision to make and they agreed to it's inflated value. Unfortunately, this only served to further add to grossly inflated and unsustainable housing prices.

Maybe these people can sell to other like minded individuals who a: enjoy over-paying for a home and b: ignore basic economic principles.

The fact of the matter is that foreclosures and falling housing prices are the solution to true recovery and sustainability. These markets were built on easy money and cheap credit, etc. The market and illusion of "prosperity" was just that, an ILLUSION. It wasn't based on sound economic fundamentals. A serious correction was inevitable.

Memo to all elected officials: Propping up inflated home prices is the disease and the problem, not the solution! Government intervention is actually preventing true recovery, affordability and sustainability from being realized. Wake up!

Hmmm | 11:06 p.m. Aug. 26, 2009

A few years ago, I was looking into buying my first home. As I shopped, prices went up it seemed like daily; for sure weekly. I for one am glad they are correcting. The homes I had been looking at, and that friends bought were so poor in quality, that I held back. Perhaps now, I can buy something that is worth what it costs.

K | 9:24 a.m. Aug. 27, 2009

Please everyone buy what you need when you can afford it. All this timing the real estate market for homebuying is a mistake. The people who overpaid for a home thinking they'd never afford to buy the way prices were rising are having a hard time now in a too expensive house that's lost a lot of value. This rushing to sell and rushing to buy is a problem. Staying in a house only 3 years is like investing all your money in the market 3 years before retirement. In 1995 a good idea. in 1998 a bad idea. You will loose initial investment. Like the market house values rise over time, but you need to be in the house 10-20 years to see that 5% increase per year. The reason. Some years it declines by 20%, other's it increases 10% 3 times in a row.

Wiseoldbanker | 10:08 a.m. Aug. 27, 2009

Here we go again. Inflammatory headlines based on not understanding the numbers. The statistics are based on the median home price. A few years ago when the prices were seemingly running up, it was largely based on the fact that people are buying larger and more expenses homes. Now that it is running down quickly, smaller less expensive homes dominate the sales. Neither statistic was accurate when it comes to evaluating the appreciation or depreciation of a single home.

I am very close to cancelling my subscription to the Deseret News because of their continued negative and inflammatory slant on business and the economy. They seem to be hell bent on destroying what little remains of Utah individual confidence.

First seek to understand before you write and especially before you choose a headline.

Wiseoldbanker | 10:25 a.m. Aug. 27, 2009

One other comment. According to the report (for what its worth)Utah is 4th highest in appreciation since 1991 and 4th highest in appreciation in the last 5 years.

re: Falling prices = real recove | 11:19 a.m. Aug. 27, 2009

I love the holier than thou attitude of some of the posters on the Des. News. According to Falling Prices, anyone who paid the market price for a home when the prices were high is a sucker and deserves what they got. As I read what they wrote, maybe when I bought 2 years ago I should have gone around just lowballing everyone until they were willing to sell for 20% less than list price.

I wonder if that would work at the grocery store or the gas station? I think gasoline is too expensive, maybe I should just refuse to buy it until the market recognizes this and lowers the price. Of course, then I wouldn't be able to drive to work and would probably lose my job and that would result in me not being able to pay my mortgage and I would probably lose my house.

No matter what our opinion is on "value," you have to pay what the market has determined is the price, especially on necessities such as food, clothing and shelter.

Stewart | 8:22 p.m. Aug. 27, 2009

If a tree falls in the forest does it make a sound? If I bought my house to live in and I didn't use it as a piggy bank does its value matter? The only affect that I can see is that if the value goes down, my taxes should also.

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