Utah Market Condition--Utah County

June 2008 Market Conditions

What are the current conditions?

We are now into the first quarter and the market in Utah is remaining stronger than the Nation Real Estate Market. This will continue throughout 2008 and into 2009.

As we finish the second quarter let's look at the numbers for Utah County by comparing 2007 with 2008.

We have seen the following:

Days on the market increase from 52 to 72.

Sold's have reduced from 1228 to 722

New Listings have increase from 3621 to 3946

New Asking Price is FLAT

Sales Price is down 4%

What does the coming year have in store?

1-Strong employment-Utah has low unemployment rate

2-Quality of Life-Utah is highly rated place to live

3-Strong commercial construction.

4-Home prices will stabilization while residential homes sales strengthen throughout 2008 compared to 2007 Q3 and Q4.

The past year has not made a lot of sense when you compare Utah with the National market. What are some of the possible reasons for the softer sales and FLAT?

1-FEAR, FEAR, AND MORE FEAR. Buyers have believed the negative national news and are making it come true for our local market.

2-Sub prime mortgage turmoil. Resulting in shrinking of the pool of buyers.

3-Negative National Real Estate news. That normally does not apply. We normally run opposite of the national markets. Especially the California market.

4-Speculators inflating our housing market, making homes unaffordable for many buyers. In the past years, now speculation history and investors are remaining. Investors provide a necessary resource of rental homes. Especially in this tight money market where many simply cannot qualify to purchase in today's market.

We have been through a price correction in Q3, Q4 2007 and Q1 2008. Q2 2008 will continue to be flat with possibly more (much smaller) price correction.

However, I would not suggest you bet on it. Our market has great value now. Buyers if you're sitting on the sideline waiting for better prices. I believe your making a big mistake.

For specific market area details please visit www.MarkWatterson.com or call me 801.815.0411

Mark Watterson is a Principle Broker with Principle Realty Group, Inc and a licensed Senior Mortgage Loan Specialist with Envision Lending Group.