A new report shows that there are nearly one-third fewer homes sold in Salt Lake County in April compared with the same month last year. Also, median prices managed a 2 percent increase to $235,000, a new report shows.
According to the Salt Lake Board of Realtors, 972 homes and condominiums were sold last month, down from 1,399 homes and condominiums in April 2007.
Home sales in other parts have led to median price declines, many of which have been deep. But Realtor officials believes that any downturn will be comparably shallow and short-lived.
Board president Jillinda Bowers said that “It appears to be a trend of increasing sales and April was the third consecutive month in which home sales increased in the county.”
Gus Faucher, of Moody’s Internet-based economic forecasting company Economy.com has predicted that the downturn could linger as long as early 2010.
Wells Fargo & Co. economist Kelly Matthews predicts a similar decline, but thinks the market may turn around later this year or early 2009.
Bowers said Utah’s low unemployment rate, strong job and population growth are helping the residential downturn be shallow and short-lived.
According to board statistics, 56 percent of all homes sold in April fetched less than $250,000. Upper-end homes are more difficult to sell though.
Many people with less than perfect credit qualified for risky loans that have ended in default and it’s part of the problem in Utah. Despite there are many people today who are having difficultly getting loans, those who are getting bigger amount of loans – those for values above $417,000 – are experiencing even more difficulty in paying for the high rates.
Bowers said more restrictive lending standards have had a profound effect on home sales since sales are down this year compared to last year and not anyone can get mortgage loans anymore this year, unlike last year.
