http://www.loanperformance.com/pressreleases/pr121907.aspxThere are many different reports I've perused regarding the current housing crisis and each paints a different picture. Each morning I glance at the headlines for an RSS feed called HousingWire. Each day, there is some new mortgage company in crisis, some new scandal regarding a well-established company or news of a plan to fix it all.
Most of the news is quite bleak. I have seen for myself in recent months the effect this is having locally.
1. Increased housing supply leads to ...
2. Stiffer competition to sell homes, which leads to ...
3. Panicky sellers who want to move their homes quickly, who then drop prices to incentivize buyers, which leads to ...
4. Dropping prices.
I was starting to worry that this would become a widespread phenomenon as appraisals started to use those panicky buyer's homes as comparables. In fact, how could that not happen? Despite my optimism that Utah will not spiral wildly out of control like other markets**, it seems logical that we'll experience at least a temporary, slight suppression of prices.
So, when good news comes along, I gotta embrace it. According to the above-sited source, the Salt Lake metro area is second only to Honolulu for U.S. home price increases over the last year.
I'm not sure why different articles' statistics are so divergent, but luckily I'm not an economist or realtor. I can just sit back and enjoy the show. And occassionally clap when I read an article like this. And wish I had some spare $100Ks sitting around to show my appreciation for the current levels of supply and demand.
** I earlier posted why Utah wouldn't see home prices drop. The great thing about life is that people can change their mind. This is called "growing up" and "keeping an open mind." I still reserve the right to enjoy the ride without defining myself by my past. :-D Cheers!
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