Real EState Websites:

Community Costs

Decline in property values for surrounding home owners

Increased municipal costs for police and fire protection, inspections, and legal action

Loss of tax revenue

Damage to neighborhood and community image

Weak Job Market

High rates of foreclosure in the past have been associated

with weak job markets. Utah’s two peak years for

foreclosures, 1988 and 2002, were both preceded by years

when job growth had dropped to 1 percent or less. The recent

precipitous drop in Utah’s job growth is likely a precursor of

higher foreclosure rates Table 2. The forecast for job growth in

2008 is 0.4 percent, and 1 percent for 2009.

Exposure to Subprime Loans

An additional factor adding to foreclosure vulnerability in this

housing cycle is the presence of over 50,000 subprime

mortgages in Utah. Seventy percent of these mortgages carry

adjustable rates resetting primarily in 2008 and 2009. Other

characteristics that raise the risk of foreclosure are high loanto-

By Real Estate Tracker.

Read this informative Real estate Blogs :

1)  http://real-estate-saltlake-city-utah.yolasite.com

National Recession and Global Credit Squeeze

Utah is not insulated from national and global economic

conditions. The U.S. recession and housing downturn and the

global credit crisis have impaired the availability of credit and

driven up interest rates. These global and national conditions

have mounting repercussions for the local housing market and

little relief is expected until late 2009.

Declining Housing Prices

Housing price increases in Utah have stalled. Prices peaked in

the third quarter of 2007 at a median of $235,500 and have

since declined by 2.3 percent Table 1. Falling housing prices

will leave some home owners with little or no equity,

increasing the risk of default and foreclosure.