The good news about the Salt Lake Homes for Sale is that they are priced much lower than they have been for some time. Actually prices are back to 2004 levels in some area based on the price per square foot basis. You’ll be able to buy much more home for the same amount of money then you could in late 2007 at the peak of market. How much more? We’ll as in all real estate that dependent on the golden rule, location! Some of the hardest hit Salt Lake county homes selling markets are the cities of Harriman, Bluffdale and Drapers South Mountain, and Suncrest. Those cities have seen homes in the over $400,000 price point decrease up to 50%. On the more establishes and desirable areas like East Bench, Avenues, Mill Creek, Holladay and Federal Height/Fort Douglass area you have seen over $400,000 homes decrease maybe 25%. Lets take a look at the real statistics on the market.
If this is the case why does the statistics being spun by the Salt Lake Board of Real Estate to the news media tell us differently? Why are they saying the median price is only down from $236,000 to $225,000? First it’s their job and it’s in their best interest to spin a rosy picture of the Salt Lake Homes for Sale market. What they like to talk about is the median “Middle Home” home price. Sure it has only gone from $236,000 to $225,000 only a 5% decrease? Who’s right? We’ll it’s not just about the price of the home; it’s about the apples to apples home your buying! What size, quality home are you buying for that $225,000 or $400,000 in the case? People buy what they can afford in price the median home is $235,000 because that is what the median family can qualify for so they buy the max home they can qualify for. That is they buy a $225,000 home. Now what they are getting in some areas are home that sold for $450,000 in late 2007. How do you evaluate the MLS data to get a Real Picture of the Salt Lake Homes for Sale or being sold? Well the most logical way to compare homes from any area, the price per square foot of the home or “PSQFT”. Our Data allow us to compare the median or middle selling home PSQFT from the peak of the market to what the PSQFT was last month. That tells you what the median home is selling for in PSQFT or how much “home” you get for the dollars spent today compared to the peak of the market.
The data I’m using is from the WFRMLS the MLS in Salt Lake County read as follows. In Harriman the highest price per median PSQFT was September 2007 at $116 PSQFT. If you spent $450,000 got you a 3,879 SQFT home, in June May 2009 that same median or middle home price per square foot was $77.45 or 33.2% less PSQFT. If you take that 3,879 home bought for $450,000 in September of 2007 is now selling for $77.45 PSQFT or $300,428. Or today you spend $450,000 you get a $5,810 SQFT home. That is a different class of home. Ouch if you bought a $450,000 home in September of 2007 you lost $149,572. Remember this is the median not the lowest Salt Lake Homes sold prices; those are dipping into the 50% lower range.
Now let’s look at the area data with less explanation. Bluffdale Dec 2007 $145 PSQFT May 2009 $78 PSQFT a 45% loss. Homes in Salt Lake County Draper South Mountain Area went from $139 a PSQFT in Sep of 2007 to May 2009 $94 PSQFT a 32% decline. Suncrest Oct 2007 $150 PSQFT May 2009 $92 PSQFT, a 38% decline. Salt Lake Homes for Sale sold price hit their heights level in Aug of 2007 at $126 PSQFT and the low “so far” May 2009 of $101 PSQFT. That is a 21% decline for the Salt Lake county homes selling price. Taylorsville hit it’s high price per sqft in July of 2007 at $113 as of June of 2009 it was 88 PSQFT. That is a decrease of 22% form the high. as of the year January was PSQFT $101 and June 88 or decrease of 12.8% a little high. Money magazine has slated Utah for a 12% for the year. WE may see home prices pick up as the First Time home buyers tax credit expires at the end of November. So were in the county are home faring better? The more established neighborhood richer in desirable living like the Avenues Oct 2007 $189 PSQFT to May 2009 $175 PSQFT or a 7% drop. Salt Lake Fort Douglas area Oct 2007 $186 PSQFT May 2009 $139 PSQFT only a 25% drop. Down town Salt Lake July 2007 $170 PSQFT May 2009 $143 PSQFT 15% decline. The Sugar House area between 1800 S. and 2800 S. above 800 E. To 2000 E. went from $167 PSQFT June 2007 to May 2009 $141 PSQFT, Only a 15% decline in price per sqft. Armed with this you can now see the reality of the salt Lake Homes For sale market! I hope you’re a buyer! If not and you have a home to sell there are distinct advantages you can implement in this market. Come back for a future post how to sell in a declining market. Or just call me I can help you get a great deal on selling your home. If you a buyer call me we can really help you with Rebates or paying points to buy your rate down below 5%. If you’re thinking about relocating it’s a great time to do that. Granted you can see that selling will not net you any ware near what your home was worth in later 2007, but you will also get more home for the money. It’s a great time to upgrade because lower priced home below $230,000 are selling well. If you can shop the bargains, Bank Owned or yes shorts sale (not for the faint of heart or people that have to move any time soon) you can get 40% or more off a home. We are the experts at looking for the deals out there. This is your introduction to “Realty As Is” this is the truth on today’s Salt Lake Homes for Sale.
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Great article and insight. Seems evident then that the houses that have lost value were those in high demand not long ago. By that I mean that so many of us were able to get loans way beyond our ability to pay back, and were therefor buying way beyond our means. Once the bottom fell out of that, the market fell out too.
In other areas, where houses were smaller and cheaper, the demand never soared and the prices never plummeted. Looks like we can all learn a lesson, including the lenders, on buying within our means…
Great article!
So very right Scott. It a keeping up with the Jones at all cost addiction. That drink is made by making loans silly easy to get, shaken up with the greed of a $500,000 home going up 20% in 2 years and add a couple of ounces of looking good served in a really fancy glass. That is a very intoxicating cocktail we’re seeing the effects of the hang over now and will continue until the end of 2010 in the sale lake valley. I predict an-additional 10% decrees in the below $220,000 and 15% 220,000 to $400,000 and 25% or more in the above $400,000 homes between now and the end of next year. Thank you for your comment and kind words! Have a safe and happy holidays!!