May 31, 2012

Cover Story

CEO of the Year

Utah’s business landscape is rich with professionals who have le...Read More

Featured Articles

Did you go Skiing this winter?

Around Utah

Sections

Spotlight
Martin Plaehn

Spotlight
Karen Sendelback

Legal Briefs
Social Media and Employers: Friends or Enemies?

Money Talk
The Case for HSAs

Economic Insight
Time to Show Up

Lessons Learned
Make a Move

TechKnowledge
In the Lab

EntrepreneurEdge
Rent to Own

Business Trends
Back from the Dead

Living Well
Artful Inspiration

Features
A Breath of Fresh Air

Features
Worst-Case Scenario

Regional Report
Northern Utah

Focus
Measure Up

Industry Outlook
Travel & Tourism

Players
Players

Article

Foreclosure Sales Remain Significant in Utah Housing Market

Heather Stewart

May 31, 2012

In Utah, about one in five home sales is of a property that is in some stage of foreclosure, according to RealtyTrac, an online marketplace for foreclosure properties. RealtyTrac’s first quarter 2012 foreclosure sales report shows that foreclosures and bank-owned properties represented 22.65 percent of all home sales in the state—up nearly 6 percent from the same quarter last year.

“Foreclosures are a big part of the market,” said Cal Musselman, president-elect of the Utah Association of Realtors. “We’ve taken it on the nose for the past few years, and we know there’s more foreclosures to come.” However, he noted that there has been a slight downtrend in the number of new foreclosures coming on the market.

More significantly, said Musselman, is the fact that inventory levels are finally starting to fall. Statewide, there is a 6.9-month supply of homes on the market, while in Salt Lake, there is only a five-month supply. According to Musselman, anywhere between six and seven months is considered a healthy inventory level.

“Our supply hasn’t been this tight since 2007,” he said. “Pent-up demand has really reared its head in the past two months. Buyers have finally come off the fence.” According to Musselman, pending home sales are up 18 percent year to date.

Because of increasing demand and tightening inventory levels, Musselman said Utah “has the ability to take on foreclosures and still maintain a healthy market.”

Musselman is regularly seeing multiple offers on homes now, particularly on those priced at $300,000 or lower. Several markets are heating up, he said, including Salt Lake, Weber/Davis and St. George. “Buyers have just come out of the woodwork in the past couple of months,” he said.

The average sales price for homes in some stage of foreclosure in Utah was $149,060, and there were 2,161 of these sales during the first quarter, according to the report. Bank-owned homes cost about 24 percent less than the market average for non-foreclosure homes in the state.

While foreclosed and bank-owned homes are continuing to depress home values, Musselman said the tightening inventory levels will eventually cause values to begin climbing again. He expects to see “smooth, gradual increases in equity” over the next little while.

Nationally, sales of homes that were in some stage of foreclosure or bank owned accounted for 26 percent of all U.S. residential sales during the first quarter, according to the RealtyTrac report. This is slightly up from 25 percent in the first quarter of 2011.

For more information about the RealtyTrac first quarter 2012 foreclosure sales report, visit http://www.realtytrac.com/content/foreclosure-market-report/q1-2012-us-foreclosure-sales-report-7213">www.realtytrac.com/content/foreclosure-market-report/q1-2012-us-foreclosure-sales-report-7213. 

Utah Business Social
UB Events View All
Utah PR Spring ConferenceUtah Business Event
May 7, 2015
Join your colleagues from Utah Business along with PRSA & IABC for this important, 1-day event th...
30 Women to WatchUtah Business Event
May 21, 2015
Utah Business Magazine along with Snell & Wilmer are proud to announce the 16th annual 30 Women T...
CXO of the Year 2015Utah Business Event
Jun 25, 2015
Utah Business Magazine along with Stoel Rives - are proud to present the 2015 CXO of the Year Awa...
Community Events View All
Walk a Mile in Her Shoes
Apr 18, 2015
Come join us for the family friendly community march to end sexual assault and violence in our co...
Creating a Strategic Thinking Paradigm
Apr 20, 2015
In today's competitive economic environment, organizations need strategic thinkers. Strategic thi...

info@utahbusiness.com  |  90 South 400 West, Ste 650 Salt Lake City, Utah 84101   |  (801) 568-0114

Advertise with Utah Business

Submit an Event

* indicates required information
* Event Name:
Price (general):
Website (if applicable):
Coordinator's Name:
Coordinator's Email:
Coordinator's Phone:
Venue Name:
Venue Address:
Venue City:
Venue Zip:
Event Capacity:
Date(s):
to
* Event Description:
  Cancel