Aug
7
Utah’s Economy: Miscellaneous Notes on the Utah Economy

Utah's Economy- Miscellaneous Notes on the Utah EconomyOne of the most important developments in the last few months for Utah’s real estate and home building industries is the sharp drop in foreclosure sales. otherwise known as REO sales (“real estate owned” by financial institution). The number of REO sales have dropped by 65 percent in the Wasatch Front Counties. In the second quarter of 2012 REO sales totaled 668 homes compared to only 236 homes in the second quarter of 2013. In 2012 REO sales amounted to 11.2 percent of all single-family homes sold in the Wasatch Front Counties. That share has fallen to 3.3 percent in 2013. The reduced share of distressed homes on the market is one reason housing prices have risen so rapidly and for the home-builder the removal of discounted REO homes from the market make new homes much more price competitive. Builders simply could not compete with the discounted prices on foreclosed homes.

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