Buyers Further Fortify Their Bunkers

Bad economic news has taken timid home buyers and sent them running for cover. Although Utah's economic outlook is not rosy for the next year, anxiety-inducing national economic headlines have gripped buyers and kept them in their current homes or renewing leases. November's sales numbers are simply bad.


As you can see in the chart above, November sales are at par with January of this year. January is traditionally the worst month of the year for sales due to weather. In January we had 3 feet of snow on the ground. In contrast, November was particularly warm and balmy. Nevertheless, November's sales mimic those from January. Ominous.

Our running chart still shows a down trend in sales. Since December and January are softer months for sales, this trend will continue. The question in my mind is how much further can the market contract? Financing barriers started the decline, now job losses and economic woes will weigh on it. If I were to place a bet, I believe the moving trend will flatten out in April or May and stay there for a year or two...or three. Time will tell. Let's watch and see.