How far will prices drop in Vernal, Utah before we start seeing a rebound?

Asked by Steve Gabriel, Vernal, UT Mon Jul 19, 2010

I heard it will take another 2-3 years to clear out all the inventory of homes in the basin. It appears that Vernal is about 1-2 years behind some of the other areas of the country. Without seeing another economic boom or homebuyer credit in the near future, coupled with the wave or short sales and pre-foreclosures, it seems like prices, at a minimum, are priced about 25-30% above the true market value. I am also concerned with the homeowners that will walk away from their homes that they purchased at the peak of the market because they are upside down in their mortgage.

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Crissy Knibbe, Agent, Vernal, UT
Mon Jul 19, 2010
Hi Steve,

This is a very good question and have many sellers concerned. There was a significant drop in sale prices at the end of the 1st quarter this year, but they have been increasing steadily since then. The average sales price for single family homes at the end of the 1st quarter dropped down to $169K from $184K in the 4th quarter and $203K in the third quarter last year. In the end of the second quarter of 2010, the average home sale price is $175K. If you would like a copy of the statistics, I have them to give you if you would like them. A lot of commotion is going on about us catching up with the rest of the nation, but as an agent, I have noticed that we are our own market out here in the Basin. We stand out from the rest of the nation as far as average employment rates and home sale prices. I believe that the Uintah Basin has found it's basis for home sales and will remain steady. There are still people moving here for employment opportunities and transfers, the planning and zoning meetings are proving knowledgeable, so with those 2 factors combined, it proves to me that the market has stablized, if not increasing again. I do not agree with what you heard about taking 2-3 years to clear out inventory. I would estimate between 1-2 years, but during that time, new homes will be listed and sold which will create a steady supply of inventory for people to choose from. There are more short sales and pre-foreclosed homes for sale, but the banks aren't going to just sell them for cheap. They have agents and appraisers giving values that support our current market. I hope this helped you. If you would like more information, please feel free to contact me.

Crissy Knibbe
(435) 790-1191 Cell
(435) 789-3948 Office
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