But I don't think our problems are the same.  First, our run up in home prices were way over due when compared to the rest of the western states.  For example, California experienced a run up of 80% over the past five years, Arizona-80%, Nevada-90%, Hawaii 110%.  These states are much more prone to huge price adjustment.  They were high to begin with and experience huge increases.  Idaho and Wyoming each experience about 60% run up in prices.

In that same five years, Utah experienced 50 to 55% run up.  However, our run up in prices happened in the  last two to three years.  This gave us the feeling of run away inflation.  This however for us was more of an overdue adjustment in prices.

What surprises me about this slow down, is that we still have all of the basics still in place.  Our employment rate is still very good, our household income is still health, interest rates for good borrowers is still a very low 6.5%, give or take.  If a borrower has taken care of his or her credit and has reasonable income, a home is still very much in their reach.

This slow down will soon have an effect on prices.  Buyers are not competing with two or three other buyers on every home they offer on.  In my opinion, this is the best time to buy a home in the past five years.

We are going to try to get the word our to the young buyers that now is a good time.  We are going to have a free Home Buyer Seminar to help educate them.  See my website for details.  Or e-mail me for more information.

Perry Bolyard

perry@realtysolutionsofutah.com