Utah market analysis

[David Li]

Hello everyone, it’s a weird time we r in. I’m just wondering what’s ur thoughts on the Utah local real estate going forward? Any opinions r much appreciated :)

[Erika Unhold]

Hi David.

Seems a little apocalyptic with the earthquake and all....

I live here, and while it is not bad here in terms of illness, I think it's way too early too tell how things will be.  My best guess-short term-prices will drop for 3-6 months as there will be significant job loss for at least the next month (I believe it is likely to be at least 2-3 months, based on China and S Korea) with all tourism related jobs shut down, and many others as well.  No jobs means no financing, which means no buyers.  Those wanting to sell would likely put a hold on their sale, while those needing to sell may have to go to a "fire sale" or convert to rentals.  Renters will either stay where they are or consider moving in with relatives. Worst Case could be much more dire, many deaths, greater economic impact, etc.  Likely a surge in hospital related jobs for a while, but not a lot of crossover in skill sets between tourism and hospital. Banks are in good shape for now, but could face many customers with bankruptcies, both individual and business. 

My feeling is that Utah will do better than most states, because it tends to be obedient to things like CDC recommendations and government orders.  Plus our underlying economy has been very solid and will recover quickly-lots of tech jobs.  

I, personally, will stay on the sidelines for now.