Almost every other condo has been stamped with a "for sale" sign at Canyon Meadows, but because of the bad housing market these condos south of campus still sit for sale as they look out to the Utah Valley.

"House prices are definitely going down," said NataLee Callahan, a broadcast student who put her condo up for sale two weeks ago. "It's hard for everyone to sell. ... We've got to stay competitive, that's the market we're in."

Many students, like Callahan, are trying to sell their homes.

The housing market has a big impact on students who are either looking to buy their first home or sell their house and move away from Provo.

While the housing market in Provo is better than many cities in the United States, the country as a whole has seen a 3.1 percent drop in house price appreciation since last year, according to the Office of Federal Housing Enterprise Oversight. Neighboring states like California and Nevada have seen the sharpest declines in house prices in the first quarter of the year.

Students Selling

As older students in Provo leave, new ones come. Students who buy a home in Provo will most likely need to sell it later. Whether it's a job opportunity or growing family, a new home will be needed in the future. The price value of homes will eventually rise as the years go by, but no one can really predict how the economy will affect house pricing.

Callahan's husband got a job in Salt Lake City, so moving further north to save on gas is the best option, she said. The couple doesn't want to rent but may end up doing so if their house doesn't sell.

Selling a home has its challenges, Callahan said. As a real estate agent for Prudential Utah Real Estate, she sees the challenges that come from the current housing market.

"My home has dropped $20,000 in a year, and prices can keep on falling," Callahan said.

Trying to predict where prices are at is the toughest part about being a real estate agent, she said. As a homeowner who is trying to sell, Callahan said there is so much competition out there and it's tough to keep up.

With many properties up for sale with low prices, Callahan advises other students to go ahead and buy.

"Go out there," Callahan said. "It's the best time for a buyer. It's a buyers market for sure."

Lenders

At the Wells Fargo branch inside the BYU Bookstore, employees get a lot of question about loans. Those who are looking for money for a house are sent to bankers who work with house loans.

Joey Larsen, a personal banker at Wells Fargo, said there are a few students currently looking for house loans, but most customers are new graduates working in Provo. Larsen works with other Wells Fargo employees to see that customers get the best loan. He is responsible for running credit checks for students.

With low student incomes and a bad housing market, Larsen said "it's a lot harder to get people approved."

With house prices going down and foreclosures going up, Larsen said many banks are taking losses from giving out too many loans but they will continue to work with house buyers to get their home.

"People still need houses," Larsen said. "We're still going to lend to people."

Real Estate

Depending on where people live, the national housing problems might not have as strong of an effect.

Elaine Stratford, an agent for Osmond Real Estate, said homes are selling in Provo but not as well as last year. She said the market is slow, but there is opportunity to buy or sell a home. She blames the market lull on media reports.

"We're pretty stable, but people have lost confidence," Stratford said. "Sales will pick up."

Kathryn Andersen, agent for Prudential Utah Real Estate, said house prices are low, but students may still struggle to afford a house.

"Prices are always a bit expensive for students," she said.

All college students have tuition, books and food to worry about, so a low mortgage payment is a must. To get a good mortgage rate, students must have a good credit score. While having a student status can help with credit scoring, Andersen said buying a house is still more expensive than renting.

"I don't know how they afford it sometimes," Anderson said. "The closer you are to campus, the higher the prices."

Students Buying

Those who plan on staying in Provo for a couple years can benefit from initial low prices that will eventually rise. For those who might move out of Provo before house values go up, renting might be a better option.

Bryan Wade, a business management major from St. George, plans on renting in August. Wade and his fiancée decided renting was a better option for them.

"I can't afford two house payments," Wade said. "With the economy the way it is, I don't want to buy a house for a cheap price right now and then, when I am ready to move from Provo in two years, have the economy still bad and not be able to sell it."

While Wade doesn't have to worry about buying a house right now, he still plans to keep an eye on the market.

"You reach a point where you will need to expand in housing with how many kids you have," Wade said.

"Personally I would prefer to wait until I can afford the house payment."

Copyright Brigham Young University 17 Jun 2008