Utah had 6th highest rate of decline in nation
By Lesley Mitchell
The Salt Lake Tribune
Article Last Updated: 02/15/2008 11:38:26 PM MST
Utah's residential real estate market, which once bucked the national downturn and all the negative press that
went along with it, is now right smack in the middle of it.
In a report released Thursday by the National Association of Realtors, Utah had the sixth-highest decline in
existing home sales - 33.8 percent - of all states in the fourth quarter.
The report compared the home sales volume nationwide in the last quarter of 2007 with the same period in
2006. In the report, sales of existing homes fell in 45 states, with a national average drop of 20.9 percent.
Many surrounding states began their downturn a year or more earlier than Utah, where home sales began to
slow in earnest this past summer. Many areas also have seen declining home prices as well.
In the report, Lawrence Yun, National Association of Realtors chief economist, blames the nation's lending
crisis in great part for the decline in sales.
"The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the
number of transactions in higher price ranges," he said in the report. "For buyers who need loans of more than
$417,000, mortgage interest rates have been running more than a percentage point higher, and that has been
having an obvious impact."
The report does not list median selling prices by state, only by 150 different metro areas. In the Salt Lake area,
despite the large drop in home sales, prices in the fourth quarter were up 2.5 percent to $229,000 compared
with the same period in 2006, according to the report.
Salt Lake was among 73 metro areas that had increases in median selling prices over the one-year period.
Nationwide, though, prices fell a record 5.8 percent in the fourth quarter.
In Utah, given the drop in home sales, many real estate agents say some type of decline in home prices will
follow.
Jillinda Bowers, president of the Salt Lake Board of Realtors said she's not surprised at the report. Home sales
are down, and sellers are making price concessions.
Still, Bowers said she wouldn't be surprised if the market showed some strength this spring. "I've seen buyers
out, showing more interest," she said.
Bowers maintains the combination of low mortgage rates and eager sellers make it a great time to buy a home.
Forbes magazine editors agree. The magazine this week delivered an upbeat snapshot of Utah's real estate
market, naming it as one of the "best cities for bargain house-hunters," citing the combination of the area's
depressed real estate market and strong economy.
The idea, according to Forbes, is that buyers can get a good deal in Salt Lake City because sellers are
motivated to make concessions but buyers don't face the risks of buying in a city that is struggling economically.
Utah - and Salt Lake City's - strong job growth ensures that there is no shortage of people moving into the area,
the magazine said.
lesley@sltrib.com
By Lesley Mitchell
The Salt Lake Tribune
Article Last Updated: 02/15/2008 11:38:26 PM MST
Utah's residential real estate market, which once bucked the national downturn and all the negative press that
went along with it, is now right smack in the middle of it.
In a report released Thursday by the National Association of Realtors, Utah had the sixth-highest decline in
existing home sales - 33.8 percent - of all states in the fourth quarter.
The report compared the home sales volume nationwide in the last quarter of 2007 with the same period in
2006. In the report, sales of existing homes fell in 45 states, with a national average drop of 20.9 percent.
Many surrounding states began their downturn a year or more earlier than Utah, where home sales began to
slow in earnest this past summer. Many areas also have seen declining home prices as well.
In the report, Lawrence Yun, National Association of Realtors chief economist, blames the nation's lending
crisis in great part for the decline in sales.
"The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the
number of transactions in higher price ranges," he said in the report. "For buyers who need loans of more than
$417,000, mortgage interest rates have been running more than a percentage point higher, and that has been
having an obvious impact."
The report does not list median selling prices by state, only by 150 different metro areas. In the Salt Lake area,
despite the large drop in home sales, prices in the fourth quarter were up 2.5 percent to $229,000 compared
with the same period in 2006, according to the report.
Salt Lake was among 73 metro areas that had increases in median selling prices over the one-year period.
Nationwide, though, prices fell a record 5.8 percent in the fourth quarter.
In Utah, given the drop in home sales, many real estate agents say some type of decline in home prices will
follow.
Jillinda Bowers, president of the Salt Lake Board of Realtors said she's not surprised at the report. Home sales
are down, and sellers are making price concessions.
Still, Bowers said she wouldn't be surprised if the market showed some strength this spring. "I've seen buyers
out, showing more interest," she said.
Bowers maintains the combination of low mortgage rates and eager sellers make it a great time to buy a home.
Forbes magazine editors agree. The magazine this week delivered an upbeat snapshot of Utah's real estate
market, naming it as one of the "best cities for bargain house-hunters," citing the combination of the area's
depressed real estate market and strong economy.
The idea, according to Forbes, is that buyers can get a good deal in Salt Lake City because sellers are
motivated to make concessions but buyers don't face the risks of buying in a city that is struggling economically.
Utah - and Salt Lake City's - strong job growth ensures that there is no shortage of people moving into the area,
the magazine said.
lesley@sltrib.com
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What the story below does not make clear is that big drop is just a reflection of how off the charts
Utah home sales were a year ago. Plenty of places that had stagnant sales in 2006 and equally
stagnant sales in 2007 rank much lower on the ignominious list than Utah, but whose market is in
better shape? Even with the big drop, Utah's housing market is still outperforming the rest of the
nation by a long shot, just as the state's overall economy is beating the nation's like a bad dog. As
with all stories in the media, take this one with a big grain of salt.
Utah home sales were a year ago. Plenty of places that had stagnant sales in 2006 and equally
stagnant sales in 2007 rank much lower on the ignominious list than Utah, but whose market is in
better shape? Even with the big drop, Utah's housing market is still outperforming the rest of the
nation by a long shot, just as the state's overall economy is beating the nation's like a bad dog. As
with all stories in the media, take this one with a big grain of salt.
