Experts are predicting that the slow housing market will continue through the end of the year and well into next year. Fueled by the subprime problem the number of foreclosures are not expected to peak until next year which will put further pressure on the U.S. real estate market.
The market in Salt Lake is still very healthy at the low end (under $200) but is slower than last year when you get above that level.
Everyone knows about the subprime issue with the market but I believe another problem will start and rear its ugly head. People living beyond their means. This is where people have been living on the equity within their home, every time they need more money they just cash out more of the equity. But what happens when prices don’t go up? All of a sudden that ready made cash is no longer available, but they still have the same level of expenditure. They could sell their home and downsize in order to cut their bills, but wait their home is already mortgaged to the max and prices have now gone down so they owe more than it is worth. If they cannot cut their bills then the only option is to foreclose!