Although Utah was one of the last states to feel the affects of the housing recession, it appears to finally be catching up to them. This is largely due to record high foreclosure rates that are sweeping across Utah, mainly in bigger cities such as Salt Lake City and Ogden. More and more homeowners are being forced to leave their homes, and mortgage owners continue to lose confidence that these home prices will ever recover.
As a result of these foreclosures many home builders in Utah are being negatively affected. Foreclosures and bank assisted short sales now make up the largest number of home sales in the surrounding Salt Lake City area. These homes are being bought by bargain hungry buyers who are looking for a steal. These extremely low home foreclosure prices are stealing the customers away from Utah home builders. The logic is, why buy a house at a normal price when you can get it at a short sales price?
These foreclosure prices have forced the prices of new homes in Utah down. Many feel that this will be a reoccurring theme throughout the rest of the 2011 year. The forecast of average housing deflation is around 4.2% for Salt Lake City, 3.8% for Ogden, 2.1% for Logan and 6.3% for Provo. Although some cities are being affected by this crisis more than others, almost all surrounding areas are hurting as a result.
home builders in Utah
These recent struggles in the housing market have resulted in higher levels of unemployment in the trades and construction areas. Home builders in Utah are struggling to keep their current staff of employees paid and happy.
The bright side to this whole mess is that people are still buying houses. With such low prices going around the housing market has turned into a buyers market. The brightest spot of hope resides in Saint George, where some say the housing market is actually booming.
It is not hard to find “for sales” signs for new homes in Saint George, they appear to popping up quite frequently. This is due to a large amount of interested buyers. For example, a three-bedroom townhouse had five offers made on it in just 48 hours. The greatest news is that many of those offers where higher than the asking price. Apart from new homes others are interested in investing in the vacant lot areas and bank owned properties.
With all the recent turmoil that has hit the housing market, many Utah home builders remain optimistic. Saint George is just one bright spot. Many others believe that the successful sale of foreclosure homes will open up the path and the sales of new homes will begin to pick up again. For every ones sake, lets hope that is the case.
The companion volume to the PBS series scheduled to launch in February hosted by Norm Abram, the master carpenter known to millions of viewers as the how-to guru of “This Old House.” Thirteen projects of graduated difficulty are presented. 148 photos and 84 drawings. Advertising in builders’ magazines. List Price: $ 22.95 Price: $ 6.20
The New Yankee Workshop
