- Home Prices And Housing Starts Reach New Low
Salt Lake City, Utah, Feb 1st, 2012 – The S&P/Case-Shiller Home Price Index has just released their 3rd Qtr 2011 Home Price Insights and reported a second nationwide dip in housing values by 3.9% when compared to this same 3rd quarter period one year ago.
This not only affects home owners, but also Salt Lake City Realtors who are many times faced with tougher market conditions when marketing their real estate listings.
This new “post bubble low” is largely due to the continued release of foreclosures being “drip-fed” into the market along with the continued tightening of standards set by the mortgage lending industry. “Many Realtors Salt Lake City have left the industry entirely due to these continued slow market conditions”, said Joe Mackey with The Mackey Real Estate Group.
In fact, percentage changes in home prices for the Salt Lake City housing market are now being reported as being even lower than the national average. While averaging all the changes in home prices nationwide in about 381 city metro areas to be calculated at a 3.9% decline, the Salt Lake City metro area experienced a 5.0% drop from just this same period one year ago. (See Figure 1)
Yet to add to this soft market data, RealtyTrac is also currently reporting 1 in every 391 housing units in Salt Lake County has received a foreclosure filing notice during the month of December 2011. Looking deeper into these numbers, Draper, West Jordan and Magna all lead in foreclosure filings with about double the county ratios.
“Despite the recent lower unemployment numbers released and the stock market more stable that years past, there will not be a full recovery without a stabilized housing industry”, said Mackey. “This recent news of a second dip in housing prices, would now justify the claim that housing is now lower than it was during the lowest point of the recession.”
In addition nationwide, annual housing starts were also estimated by Case-Shiller to currently be at 700,000 down from it’s peak of 2.37 million starts just a few short years ago. “This is like taking a major industry within the U.S. and eliminating three-quarters of it over a period of a 5-6 years,” said Mackey.
It is estimated that two-thirds of the U.S. economy is driven by consumer spending, from which many home owners have lost double digit percentages of their real estate equity positions. Thus, it is likely that the housing industry will need to at least recover in order for a stabilized economy to take place.
Joe Mackey, CCIM has over 18 years in the real estate industry and has negotiated over $475 million in real estate transactions (both residential and commercial). He is one of the licensed Commercial Real Estate Agents at Keller Williams and specializes in marketing real estate during tough market conditions via the internet, property unique websites along with promo videos for each listing. If you are seeking competent Commercial Real Estate Agents Salt Lake City, then contact him today at 801-895-2632.
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