Sales of existing single-family homes in Salt Lake County fell by 42.2 percent in the first quarter, compared with the same period last year, a new report by the Salt Lake Board of Realtors shows. Median selling prices were virtually unchanged over that period, rising less than 1 percent, to $242,000. Just a year earlier, the increase was more than 20 percent from the previous year.

In Davis County, which had a 26.6 percent decline in home sales, median prices remained largely unchanged at $220,000.

But prices fell in Tooele County by 6.3 percent, to $180,000, coinciding with a steep 45.5 percent drop in sales from last year. Prices also were down 2 percent in Utah County, to $229,940, as sales fell 41.7 percent. Only Weber County saw a significant increase in median selling prices - 7.6 percent, to $162,500 - despite a 31.7 percent drop in sales.

Economists say it's not unusual for home prices to remain "sticky" for some time after a real estate market takes a turn for the worse. Many sellers refuse to lower their prices even months into a downturn, letting their properties languish on the market. Others will elect to take their homes off the market and wait until conditions improve.

But if economic conditions don't improve over time and enough people have to sell their properties, prices will fall, said Gus Faucher of Moody's Internet-based economic forecasting company Economy.com. He expects that to happen in Utah in the coming months.

Faucher predicts that prices in the Salt Lake metro area will fall from a peak last year as much as 20 percent by early 2010. His prediction mirrors that of Wells Fargo & Co. economist Kelly Matthews, although Matthews believes the market may turn around as soon as later this year or early 2009.

Jillinda Bowers, president of the Salt Lake Board of Realtors, said she remains bullish about the market despite the drop in sales and softening of prices.

"People shouldn't be fearful. You have motivated sellers, and interest rates are low. It's a great time to buy."

Buyers such as Josh Sletten and his wife, Amber, agree. They began looking in October last year. Their real estate agent, Craig Hawker, took them to 80 homes, and although some sellers weren't budging on price, Josh Sletten said he began to notice others were motivated - in a big way.

The couple closed two weeks ago on a home in Draper that had been listed last year for more than $400,000. The property had been under contract with another buyer for $375,000, but the deal fell through. The Slettens got it for $325,000.

"We felt like we were getting a pretty good deal," Josh Sletten said, noting that the seller also paid for some of the Slettens' closing costs.

Now the couple are hoping they can work the same magic selling their home in Dayton, Ohio, where the market has been ravaged by an even sharper downturn than in the Salt Lake Valley.

Home prices in many other states increased rapidly for much of the 2000s, beginning a period of decline around 2006 that continues through today. The Wasatch Front's home-sale market, however, began to heat up several years after most of the rest of the country - around 2004 and 2005 - with a slowdown starting only last summer.

Utah's market, like others around the country, has been affected by the nation's subprime lending crisis, in which many people with risky credit qualified for loans that have ended in default. Lenders have since tightened standards, making it difficult for many families to qualify for a loan.

Affordability also has played a role. After years of double-digit home price increases, many families along the Wasatch Front can no longer afford to buy a home. To make matters worse, mortgage rates, while still comparatively low, are inching up.

Faucher of Economy.com said Utah's strong economy, with its continued population growth and job growth, should help make the real estate downturn comparatively mild. Even though he thinks prices will decline by as much as 20 percent, other states ultimately will see a far greater drop, he said. Nevada's correction probably will total 40 percent, and Arizona and California each are expected to drop around 35 percent. The average drop nationally, he said, will be around 23 percent.

lesley@sltrib.com