Real life lessons in real estate bubblenomics
By Curmudgeon
The front page top story in the Standard-Examiner today is this:
Stability seen in Utah homes
Foreclosure rates up, but still far below average for country
By JORDAN MUHLESTEIN
Utah’s foreclosure rate is slightly higher than a year ago, but far lower than the national average. Statewide, the percentage of loans in foreclosure was 0.8 percent in the fourth quarter of 2007, up from 0.61 percent a year earlier, the Mortgage Bankers Association reported Thursday. The Utah rate was less than half the nationwide rate, which rose from 1.19 percent in 2006 to 2.04 percent in the fourth quarter of 2007.
Nationally, more than one of every 20 home mortgages was delinquent during the last three months of 2007, the highest level in 23 years.
The rest of the story can be found here.
Utah has [so far] dodged the real estate crash and chaos that has engulfed much of the rest of the nation because Utah also dodged the real estate boom [aka "bubble"] of recent years. Wasn't it just a short while ago that advocates of the gondola/gondola and park sale for real estate development scheme were explaining to the rest of us ignorant peasants that Ogden had missed out on all the prosperity, and that building the gondola/gondola and turning the golf course into Mr. Peterson's vacation villas would trigger the same kind of real estate boom in prices they were seeing in Las Vegas and Arizona and California and Florida? That we too could become rich practically overnight by building the gondola/gondola and triggering a real estate boom here? Just months ago, wasn't it?
Wonder if Godfrey, Geiger & Gang will be making the same argument anytime soon....
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4 comments:
Every one who has been playing the "endless prosperity in real estate speculation" game is still waltzing to the tune of "Utah’s foreclosure rate is .......far lower than the national average".
As the tip of the great ship of real estate speculation settles below the waves the "yea sayers" amongst up still gather on the fan tail and strike up the band with lively tunes of free money and honey in paradise.
It will be interesting to see what becomes of all the properties bought up by the Arizona investors. I've seen some on the market for outrageous prices (but haven't sold yet.)
as utah has embraced more of the outside world it has also lost a degree of its insulation from the outside world.
we may not go as low as other areas of the country but we will definately be affected.
as big picture investor would you place your next dollar in utah or in another state where things are more desperate and where there is a more proven case for volatilty. in other words where are the deals that will make you the most money if you buy at the bottom of the business cycle. utah may be loosing some of its potential buyers.
Oh, it's coming even though Pres. Bush doesnt think so. It's going to bite the borrow and spend Mayor in his weasley little ass.
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