Salt Lake County House Prices

I have been watching the local real estate market a lot lately, as I am planning on moving from Kaysville further south, to be closer to my job in South Jordan. As I am trying to sell my house and find another one to buy, here are some of my observations about the Utah market (particularly the Wasatch Front:)

  1. Houses are still way overpriced. Home prices are dropping a lot in other parts of the country, but not in Salt Lake County. The Deseret News reported today that house prices have stayed virtually the same since the same period in 2007, but sales have gone down 42.21%.
  2. The median income for a family in Salt Lake County is $54,470. The median house price is about $240,000. This works out to be about 4.4 times a family’s annual income, which is higher than historical norms. Traditionally, home prices have a ratio of no more than 3 times a family’s annual income.
  3. That means that the median home price in Salt Lake County ought to be more like $164,000. That is a long way to fall before house prices reach an equilibrium based on market fundamentals.
  4. Many REALTORS® are lying about market conditions to trick people into paying too much for a house. I think I may have got the only sane one. One clueless REALTOR® posted the following on the Deseret News website:

The economy is fine in Utah, just not in CA, AZ, and NV. You’ll see that this summer will be a big year in Utah real estate and if you don’t buy a house this summer, you’ll miss the perfect buying opportunity. Get in now while the gettin’ is good!

I think the market will correct itself with time, but that doesn’t help me out much in my personal situation, since I want to move this year. It will be interesting to continue to watch the market and see how it irons out. With prices falling so sharply, a lot of people are going to get hurt if they were left holding the bag.

2 thoughts on “Salt Lake County House Prices

  1. People are doing UTAH real estate business. I don’t trust them at all. What kind of skill they have other than selling housing with lying. Lie after lie. Those people made American economic down. Really, what else they can do? In big % of UTAH business are real estate. Really what else they can do more than selling house.

  2. A lot of REALTORs are losers. I think many of them provide very little value for the fat commissions they get.

    I actually engaged the services of a local REALTOR in the recent sale and purchase of my own houses, and was pleasantly surprised at just how awesome he was. Instead of just putting up a listing on the MLS and waiting for his commission, he went out of his way to provide excellent service. His name is Todd Jones.

    For example, when the purchase of our new house was under contract but not finalized, my wife and I were out at the appliance store looking for a refrigerator, but didn’t know the dimensions of the space in the kitchen for it. We called up Todd and he actually drove to the house and measured it and called us back. That kind of service is rare indeed.

    So, like the law profession, real estate may be an industry in which 99% of REALTORs make the other 1% look bad; but there are good ones out there.

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