Utah home sales drop, so does median sales price*

The National Association of REALTORS released a report yesterday that shows Utah homes sales dropping by 33.8%. That is, from fourth quarter 2006 to fourth quarter 2007.

Our median sales price in Utah also dropped 7.13% from 3rd quarter to the 4th quarter of 2007.

What does this mean for our market? Simply that we are in a correction. We are not in market freefall, or panic mode – we are just returning to normal. This return scares a lot of people because they see what has gone on in other states as a preview of what will happen in Utah. I think prices may continue to drop throughout 2008, but I don’t believe that Utah will see it to the same degree as other states have.

I think Dave Mansell of the Utah Association of Realtors is right on when he said in an interview that historically, Utah hasn’t seen the same peaks and valleys that other states have. He said we don’t go up as fast, or fall as fast or as hard, so we are more stable here.

I have the feeling he’ll prove to be right as we see what unfolds in 2008. Additinally, with the passage of the economic stimulus plan that raises the limit on conventional and FHA loans, Utah’s market will benefit by easing the crunch that jumbo loan applicants have felt lately.

I think we’re in a fairly good position in Utah. I can’t predict what will happen this year, but I’m hoping for the best.

*My service doesn’t stop here! In addition to maintaining The Salt Lake City Utah Real Estate Blog, I also help people buy and sell homes in and around South Jordan, Utah. When you need help with either of these, contact me!

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