Where did the buyers go?

The buyers didn't go anywhere.  They're just hibernating.

Even though Salt Lake's economy remains one of the strongest in the country, many buyers have opted to play the waiting game.  Looking for lower interest rates and lower prices, Salt Lake's buyers are perhaps being over-cautious.

So then I ask the question, "How much lower do you think rates can possibly go?"  Most buyers quote the news they hear (usually a good source of late or inaccurate information), stating they've heard the feds just cut interest rates again.  Little do they know, those rates have relatively little to do with home loan interest rates.  

The bottom line is there are investors behind all these home loans.  When the money (profit) isn't good enough, investors will go elsewhere.  It's hard to imagine that rates can stay in the 6% range much longer.

Then there's the question of when the market has hit bottom.  Salt Lake County sales lost, on average, $20k in value in the last quarter of 2007.  Even though we're setting records with in-migration, population growth, and job growth...there's still some retisence in the market.

So here's my prediction.  When house prices begin going up, and when interest rates begin going up, that's when we'll have our buying frenzy.  

After all, the only way to know when stock is at its lowest is to wait for it to go up.  And so goes the housing market.  For the latest statistics for the Salt Lake market, visit http://fantisgroup.com/salt_lake/real_estate/market-statistics.html

As more Realtors and buyers discover the lending options that are still available to them, we'll see many more new and happy homeowners.  Still stuck?  Consider Utah Housing and FHA.  Utah Housing has income limits...but few people know there are neighborhoods with no income limits for Utah housing.  And with increased FHA lending limits ($729,750) in Salt Lake County, there will be many more people who can afford to get into the home they would otherwise qualify for if they had more down.

Hang tight Salt Lake, things may have calmed for a bit, but the flood's a-coming!