Deseret News | Utah prices for homes sink while sales climb

Reader comments
Utah prices for homes sink while sales climb

Gibson | 6:45 a.m. Oct. 28, 2009

I believe the Utah Home Run 2 grant is now $4,000 and will soon run out, perhaps within 10 days or sooner. Hopefully it will be renewed as well as the federal $8,000 tax credit, which will also soon expire. Utah need these "grants" to keep the momentum going in Real Estate, however they are only short term fixes.

Govt Incentives are un-American | 7:11 a.m. Oct. 28, 2009

The economic crisis which taxpayers had to bail out came from the greedy construction and finance industries. Now those same struggling taxpayers and existing homeowners are at a disadvtange trying to sell their existing home so we can give tax incentives for people to buy newly-contructed homes, but not existing homes. That is a perfect example why govt incentives have unintended consequences, patently unfair and counter to principles of free markets.

oracle | 8:57 a.m. Oct. 28, 2009

Bad and getting worse. Utah home prices are still 20 - 30% too high in today's economic meltdown.

Comments continue below

Unorganized | 9:20 a.m. Oct. 28, 2009

The first wave of the state's $4000.00 grants "ran out" in June. Too bad for those buyers who were nearly ready to close. Then the state randomly reissues a new wave of $4000.00 grants to urge people to buy houses. Unfortunately, many buyers will be left out again. The haphazard approach and lack of follow through and accountability for all of these government stimulus prizes is just ridiculous. Are you listening elected officials? Voters are.

Economics | 10:04 a.m. Oct. 28, 2009

Just goes to show that supply is starting to bring down the artificial demand and high prices created by greedy sellers and ignorant buyers. Can't wait to see the market drop another 30 percent. The desire to live in Utah Valley is now being exposed in a major way.

Artificial incentives... | 10:45 a.m. Oct. 28, 2009

create artificial demand. Once these grants run out (they are unsustainable) you'll see prices tank even faster because buyers will once again be faced with prices they can't realistically afford. Govt. intervention is a terrible idea in this scenario. Also, what happens when interest rates rise, which they certainly will to combat imminent inflation? Prices will drop even more.

I'll start looking when prices are at pre-2002 levels. In the meantime, I can wait and amass capital for a huge down-payment.

EF Hutton | 10:46 a.m. Oct. 28, 2009

I would hope the Realtors in the State of Utah get a big dose of reality. One of the main reasons prices have not adjusted more appropriately, is agents and brokers continue to give false hope to the sellers. No one wants to face the music. I am just now seeing prices adjusting. Our market is going to struggle for several years based on what happened with our overheated escalating prices AND the national economy. Everyone drank the cool-aid. Now it time to sober-up. If we ever want to see velocity again to the number of sales in the market, prices will need to adjust even more from where they are today. 25% to 30% more is needed. Watch and see . . . .

Over Valued | 11:41 a.m. Oct. 28, 2009

Good. Houses are still over valued in the Salt Lake valley and should continue to decrease.

my slc | 11:59 a.m. Oct. 28, 2009

Why is there cash for houses?

Weren't most reader of the Des news against the cash for clunker program?

I agree, Utah housing prices are unrealistic.

Cougar Blue | 12:16 p.m. Oct. 28, 2009

Why do our home values continue to fall but in the news I saw that home prices in Denver rose for the 6th straight month?

To Cougar Blue | 12:48 p.m. Oct. 28, 2009

Home values continue to decline because there was rampant building and speculation that WAY beyond affordability and need for housing. Too many homes were built with expensive extras that cannot be born by a market with average-to-below-average wages. Almost every new home seems to have a theater room, giant kitchen/pantry, "mud-rooms", drinking fountains, marble counter tops, expensive flooring, expensive finish work, etc., etc., etc. Because the market can't support prices of homes with these extras, home prices have further to fall than for other markets. Combine that with larger families and big donations to charity and you have a recipe for foreclosure, falling real estate values and oversupply at a given price point.

For homes over about $350,000-$400,000, expect more pain for another year or so and then a flat market for years to come. The $500k to 1+ million dollar range will fair even worse.

To Cougar Blue | 12:50 p.m. Oct. 28, 2009

Modest homes ($200-350k) will do fine. The value of larger, more expensive homes will languish for years. The higher the price, the worse the underperformance.

Living in Orem | 2:16 p.m. Oct. 28, 2009

Right next door a smaller home than mine just sold for $400,000. It was built for $320,000 in 2004. During the peak, the next door house sold for $435,000.

So price have fallen quite a bit but prices still have to fall a lot more to get back to 2004 prices.

I plan on living here a while so I wouldn't mind seeing prices fall even more. I'd like my kids to have a place to live that isn't all the way out in Saratoga....

poor misguided chap | 8:13 p.m. Oct. 28, 2009

"We knew the prices were going to be the lowest that they'll be for several years," he said of his newly purchased Traverse Mountain home.

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