I don't have a crystal ball, but if I did, this is what I think I would see for the upcoming year. If you have been shopping for a home or showing homes you will have to admit there are quite a few short sales on the market. It doesn't appear that these short sales are moving very quickly.
I think that many of these short sales will end up going to auction, or end up as a foreclosure back on the market with a REALTOR. The number of these that are already listed coupled with the number of ARM's that will adjust will just add fuel to the fire.
There's no way we can absorb more of these properties on the market and not have price drop further. I see more foreclosure properties ocming on the market and more people trying to get a short sale done.
Our prices in the greater Salt Lake City market area and all of Utah for that matter will continue to drop. The price range for first time buyers will be impacted the least due to a larger demand for these properties. Homes priced above 250K will have to be priced extremely well and marketed aggressivley to even have a chance at selling.
I think we can expect a 5-10% reduction in the first time buyer range, all other inventory will see price reductions anywhere from 10-30%.
We will experience the usual spring-time boom where it may look like values are going up, but sellers who price high thinking it's the spring time will sit through the summer into fall and become just another statistic.
People, now more than ever it's important to use a trusted advisor and REALTOR to help you with your real estate goals.