How Soft is Real Estate in Utah

Well, in case you haven’t been paying attention, we are certainly experiencing a slowdown in the Real Estate Markets in Utah. Last week the Board of Realtors released information showing an average decline in value of 1.2% from the first quarter of last year to the first quarter of this year.

But just how bad is it?

I was reviewing the underwriting guidelines for one of the more aggressive lenders on the market today, and came across something that I thought was worth passing on.

This particular lender is notoriously difficult on appraisals. The vast majority of property appraisals will be reviewed and adjusted. In other words, this particular lender is suspicious of home values, and therefore more conservative in lending practices.

So, here is the thing I found: This lender has a list of every “at risk” county in the nation. Most States have several counties on this list. Utah, however, only has one county: Washington County.

What does that tell me? While we are slowing down, this is still a good time for Real Estate Activity in Utah. If one of the most difficult lenders views Utah markets as more stable than not, we ought to do the same.