All Real Estate Roundup
October 16th, 2007
Draper Utah Real Estate is in the tank! September home sales dropped 55% from the prior month and 64% from September 2006. The mortgage crisis has completely crippled Draper home sales. The entire month of September Draper had only 22 home and 7 condo sales.Â
While sales were down, home values increased to an average of $490,637 which is an increase of 6.9% over September 2006 values.
Draper Utah - September 2007 Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$446,072 |
+.2% |
64 |
-18.9% |
9.9 |
| August |
$180,619 |
+2.2% |
65 |
-13.3% |
10.6 |
| September |
$490,637 |
+6.9% |
29 |
-63.8% |
24.2 |
The absorption rate (the number of months required to sell all current listings) for Draper more doubled doubled in September to 24.2 months. That means it would take 24 months to sell the current listings if no additional homes were added to the market. And in September alone Draper had 224 new listings added to the market for a total of 702 listings. To see the September absorption rates for all of Salt Lake County check this post.
Salt Lake County - September 2007 Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$311,576 |
+11.1% |
1,269 |
-5.2% |
6.6 |
| August |
$316,151 |
+10.3% |
1,294 |
-12.2% |
7.0 |
| September |
$300,066 |
+6.2% |
848 |
-34.2% |
11.0 |
Home sales in Draper is “THE” worst in Salt Lake County. Even Riverton and South Jordan are doing better. See the above comparisons.
Has Draper real estate hit rock bottom? Will home sales continue to decline? Will real estate values, which have continued to climb in Draper start to decline with the increased absorption rate?
If you’re interested in information on any particular zipcode or neighborhood just contact us at 801–582–5882 or at Ask The Broker.
Information for our stats were taken from WFRMLS as of 10/16/2007 and are subject to change at the discretion of the web-master. Zipcodes included for Draper Utah include 84020.
Authored by Keith Jeppson |
October 16th, 2007
Sandy Utah September home sales dropped 43% from the prior month and 34% from September 2006. The mortgage crisis hit Sandy hard with only 80 home and condo sales recorded for the entire month os Feptember.
While sales were down, home values remained stable at an average of $380,028 which is a 12% increase over average home values in September 2006.
Sandy Utah - September 2007 Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$381,834 |
+14.9% |
136 |
+1.5% |
6.3 |
| August |
$374,941 |
+15.5% |
141 |
-19.9% |
6.7 |
| September |
$380,028 |
+12.2% |
80 |
-33.9% |
12.7 |
The absorption rate (the number of months required to sell all current listings) for Sandy doubled in September to 12.7 months. The increase was due to the low sales and the huge increase in the number of listings. Sandy currently has 1,015 active home and condo listings which is the highest ever for Sandy. To see the September absorption rates for all of Salt Lake County check check this post.
Salt Lake County - September 2007 Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$311,576 |
+11.1% |
1,269 |
-5.2% |
6.6 |
| August |
$316,151 |
+10.3% |
1,294 |
-12.2% |
7.0 |
| September |
$300,066 |
+6.2% |
848 |
-34.2% |
11.0 |
Home sales in Sandy is pretty consistent with most of Salt Lake County. See the above comparisons.
Has Sandy real estate hit rock bottom? Will home sales continue to decline? Will real estate values, which have remained strong in Sandy start to decline with the increased absorption rate?
If you’re interested in information on any particular zipcode or neighborhood just contact us at 801–582–5882 or at Ask The Broker.
Information for our stats were taken from WFRMLS as of 10/16/2007 and are subject to change at the discretion of the web-master. Zipcodes included for Sandy Utah include 84070, 84092, 84093, 84094.
Authored by Keith Jeppson |
October 13th, 2007
Salt Lake home prices peaked in July and then started their decline. The home value pressure caused by the current mortgage crisis finally took its toll on our Salt Lake real estate market.
September homes sales dropped to 186 homes & condos sold which is even lower than the average sales in January, the slowest month of the year. The number of active listings increased to 1,806 listings. The result of the growing home inventory and declining sales is an is an absorption rate of 9.7 months. That is a 4% increase in time on market over the August rate of 6.8 months. Check out the September Absorption Rates by city here.
Salt Lake City - September Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$357,434 |
+27.7% |
254 |
+.8% |
6.8 |
| August |
$344,788 |
+14.3% |
272 |
-7.5% |
6.8 |
| September |
$311,271 |
+6.9% |
186 |
-23.5% |
9.7 |
The Salt Lake City real estate market is pretty consistent with the Salt Lake County results. Sales were slowing but were still doing ok until September. In September homes sales plummeted! Why?
Salt Lake County - September 2007 Home Sales
| Month |
Average Sold Price |
Change from Prior Year |
# of Homes Sold |
Change from Prior Year |
Absorption Rate in Months |
| July |
$311,576 |
+11.1% |
1,269 |
-5.2% |
6.6 |
| August |
$316,151 |
+10.3% |
1,294 |
-12.2% |
7.0 |
| September |
$300,066 |
+6.2% |
848 |
-34.2% |
11.0 |
The mortgage crisis reached its peak in September. Prior to that we heard fears of increased foreclosures and falling prices. But in September Countrywide announced anticipated layoffs of 12,000 people and Merrill Lynch released their downgrade of Countrywide. For more on Countrywide and its impact on the market check here.
Even more impact was felt in September with tightening loan restrictions and the vanishing “stated-income” loans. Buyers suddenly had to have a down-payment to buy a home. Some buyers had been pre-approved and were a week away from closing when their lender informed them the loan they were approved on was no longer offered. If they couldn’t come-up with some “down payment” they could not close the loan. It was a tough month with rumors of 50% or more of purchases falling apart.
Have we seen the worst of it? Will things ease up through fall and during the winter months?
If you’re interested in information on any particular zipcode or neighborhood just contact us at 801–582–5882 or at Ask The Broker.
Information for our stats were taken from WFRMLS as of 10/13/2007 and are subject to change at the discretion of the web-master. Zipcodes included for Salt Lake City include 84101, 84102, 84103, 84104, 84105, 84106, 84108, 84109, 84111, 84116.
Authored by Keith Jeppson |
October 12th, 2007
It seems that Countrywide is to the Mortgage industry what Microsoft is to computer and gaming technology. Since co-founding Countrywide in 1969, Angelo Mozilo has built Countrywide into the largest originator of home loans in the United States. Many don’t realize that Countrywide also services loans originated by other lenders totaling a servicing portfolio of about $1.5 Trillion!
It seems that many are looking at Countrywide as a barometer of the industry as a whole. As Countrywide goes, so goes the industry. If they appear on the road to recovery maybe the mortgage and real estate industries will have bottomed out as well.
So, what is happening with Countrywide? Will they follow the path of the 165 other lenders who have closed their doors?
In August we heard Countrywide had maxed out their line-of-credit and received a $2 billion infusion from Bank of America. There was speculation that the feds had some involvement and pressured Bank of America to assist in bailing Countrywide out. But, in an interview with BusinessWeek, Angelo Mozilo refuted the rumors and stated it simply showed Bank of Americas confidence in Countrywide after their extensive due-diligence. During August Countrywide also announced it’s intent to layoff around 12,000 employees and suspend it’s “sub-prime” business. The announcement of Countrywides problems started a decline in stock values from $35 share in July to about $19 per share at the end of August.Â
When asked about is forecast for the future, Mozilo commented that we were in an unpredictable environment. We have seen falling home values for 12–16 months which is certainly indicative of a recession. He did not expect a recovery until early 2009.
In September Countrywide cut 4,935 of the anticipated 12,000 reduction. The reductions were certainly the result of Countrywide getting “out of the sub-prime business” and the reduction in the mortgages in their pipeline. It’s pipeline of loans-in-progress was $42 billion as compared to $65 billion for the same time last year.
September saw the feds cut the federal funds rate to 4.75% and announce a Bush/FHA bail-out program for homeowners affected by rising rates on their variable rate loans. The news has had little impact on home-buyers confidence. Home sales in Salt Lake dropped to 835 units in the entire county. The lowest September sales volume in over 10 years.
The bad news seems to be that investors of security-backed loan packages are still reluctant to get back into the market. That reluctance is not expected to soften much through 2008.
The positive news is we still closed 835 purchase loans in September. Sellers are finally adjusting their prices to the market and buyers are seeing value opportunities.
“Conforming” loans are available! People who qualify with modest to good credit scores, money for a down payment, and verifiable income can buy a home. We’re back to where we should have been before this real estate frenzy began.
I believe Countrywide will survive this debacle. It will Morph to meet the market and remain the kingpin in the mortgage market.
Authored by Keith Jeppson |
October 12th, 2007
Is Dave Fox a SportsCaster or Real Estate Con-Man?
Last night KUTV aired an interview with Dave Fox discussing his recent guilty plea for participating in Mortgage fraud. Dave appeared contrite and about his participation in the real estate scam. KUTV put Dave on “administrative leave” after he was charged. However, with the “plea and abeyance” settlement and his cooperation with state investigators, KUTV is allowing Dave to return to “the aire”. KUTV stated, “Though the ordeal has brought a level of embarrassment to Fox and KUTV, station managers — KUTV General Manager David Phillips and News Director Tanya Vea — ultimately decided to allow Fox to return to his position as sports anchor, something he says he has been “desperate” to do.”
So what did Dave Fox do? Was he a conspirator or a victim? Was there a Fox in the hen-house?
According to Dave Fox and other news articles Dave signed closing documents provided by his lender stating he intended to occupy the home he was purchasing as his principal residence. By signing that document he was qualified for a lower interest rate, by about .5%. He lied! He fraudulently misled the lender who gave him a reduced interest rate based on his signed occupancy statement.
It doesn’t excuse Dave’s actions, but this kind of fraud goes on consistently in investment loans. Yes, I’d even say it has been common place. Investors, flipping or holding their real estate investment, want to keep mortgage payments as low as possible. That 1/2% interest rate savings can mean $125 less in interest each month on a little $300k mortgage.
This is classic Utah Mortgage Fraud. Check-out our post last June on Utah Real Estate Fraud. Red flags should have been flying everywhere for Dave!
Dave would not have been caught or charged with any crime if there had not been some deeper scheme going /on that imploded and brought his actions to the surface. He was likely caught as the lender started investigating the mortgage, which was likely in default, and discovered that Dave lied about his intended occupancy. Check these reports in the “Daily Herald” and you’ll see that Dave was involved in a much larger Real Estate Valuation scam in the River Bottoms in Provo. The Utah County Attorney felt Dave was not apart of the larger scheme stating, “Mr. Fox has taken what we feel is appropriate action for his responsibility in this, and we are perfectly satisfied with this resolution,” said Mariane O’Bryant, deputy Utah County attorney.”
So, Dave goes back on the aire. He learned his lesson, and the public has learned from his lesson.
Promoters and con-men don’t usually use their own money in their scams. They look for reputable, financially strong friends, associates, and anyone who will listen to their pitch, to finance their scams. In real estate these are called “straw-buyers”. People putting up their credit and signatures to get loans to purchase the target properties. Dave appears to simply been a straw-buyer promised great rewards for the use of his credit and purchasing power.
Be careful whenever asked to put your credit and net-worth at stake for a promoter of any sort. And never lie to try and get a better deal. It’s just not worth it! Dave Fox put his job and his family in jeopardy and he compromised his personal integrity for the sake of a 1/2% higher interest rate?
Â
Authored by Keith Jeppson |
October 11th, 2007
Rooting Out the Rotten Tomatoes
Workers separate tomatoes at the sprawling Central de Abastos market in Mexico City on June 10
Gregory Bull / AP
So how much damage can a few rotten tomatoes really do? The tomato-linked salmonella outbreak announced by the Food and Drug Administration (FDA) on June 3 has claimed 228 victims in 23 states over 58 days (and counting). It has put 25 people in the hospital and may have had a role in hastening the death of a cancer patient. And then there’s the flurry of panic as many of the tomatoes that American consumers take for granted every day suddenly disappear — from McDonald’s hamburgers; from the salsa at Chipotle Mexican Grill; from Burger King, Taco Bell and Sonic; and from the grocery shelves at Kroger, Wal-Mart and Target. Didn’t we just go through this with bagged spinach? With peanut butter? With pet food?
Because the FDA’s tomato-recall recommendation is so specific — including only three types, grown in certain regions during a certain time — and because many national chains pulled their tomato stock within days of the announcement, most of the infected samples have likely been removed. But the outbreak remains ongoing; its source has not yet been determined, and the government is investigating new cases every day. It may be a few more weeks before the delicious staple fruit is given the all-clear.
Taking tomatoes off shelves and menus may contain the outbreak, but it doesn’t explain it. On May 22, the New Mexico Health Department notified the Centers for Disease Control and Prevention that it knew of seven people recently infected with Salmonella Saintpaul, an unusual strand of the bacteria that accounted for only 400 of the 1.4 million cases of salmonella infection reported last year. And it was precisely because occurrences of the Saintpaul strand are so rare that the report caught the CDC’s attention. When Texas and a few other states reported cases of people being infected by bacteria with the same “genetic fingerprint,” a multistate search for Salmonella Saintpaul was launched. While the CDC tracked reported illnesses, the FDA interviewed victims to find out what they had eaten (and where). The common answer was tomatoes.
There have been 13 outbreaks of salmonella in tomatoes since 1990, which puts the fruit on the list of high-risk foods that are prone to infection. But unlike the bagged spinach from the 2006 E. Coli scare, the tomatoes don’t come with a traceable bar code. “When you’re dealing with tomatoes, it is much, much more complex,” explains Dr. David Acheson, the FDA’s associate commissioner for foods. The FDA’s great tomato hunt has an ever-expanding list of suspects. A salmonella victim can point to the supermarket (or restaurant) that sold the offending fruit, but that store probably sources its tomatoes from several suppliers, each of which uses several distributors — and distributors buy from any number of growers.
“Each set of questions just multiplies into a fan of information that has to be sorted through to understand where the links cross over,” says Acheson. Although the FDA has managed to rule out some regions — northern Florida is safe because its tomatoes weren’t ready for harvest at the time of the outbreak — it will be some time until the true source is found. “We’re not quite there yet,” says Acheson, “but we’re getting very close.” But Dr. Ian Williams, chief of the CDC’s OutbreakNet team, warns that the source may never be found due to the fruit’s short shelf life. “You don’t expect to find an infected tomato sitting on someone’s counter 10 days after the outbreak,” says Williams.
Still, the lag time between the initial outbreak and the government’s reaction is startling: the first Salmonella Saintpaul victim fell ill on April 16, but the FDA didn’t announce the tomato link until June 3. Williams says part of the problem identifying salmonella outbreaks is that a lot of victims don’t see the symptoms — diarrhea, fever, vomiting — as sufficiently severe to warrant a visit to the doctor, and so they go undiagnosed. “There may be a delay in reporting outbreaks because people do not have a stool specimen tested,” he says. Officials have not yet identified an infected tomato, and because of the fruit’s short shelf life, they probably never will.
The FDA unveiled a tomato-safety initiative in 2007 that sought to identify causes of salmonella infection, but Acheson admits that studying preventive techniques doesn’t help the FDA deal with outbreaks. The FDA has no plans to change the initiative in the face of the recent outbreak.
Even if the FDA can pinpoint the source of the outbreak, it’s hard for consumers to know where their tomatoes are grown. Certain imported foods are required to carry country-of-origin labels, but that doesn’t apply to domestic produce. “I’m not aware of any tomato outbreak that was not domestic,” says Acheson. There is no such thing as a mandatory state-of-origin label for food, and federal authorities have yet to create such a law. “Saying ‘product of the U.S.’ isn’t necessarily going to confer safety,” he says. So much for reassurance.
Vi ste jeben.
Authored by Keith Jeppson |
September 28th, 2007
Rooting Out the Rotten Tomatoes
Workers separate tomatoes at the sprawling Central de Abastos market in Mexico City on June 10
Gregory Bull / AP
So how much damage can a few rotten tomatoes really do? The tomato-linked salmonella outbreak announced by the Food and Drug Administration (FDA) on June 3 has claimed 228 victims in 23 states over 58 days (and counting). It has put 25 people in the hospital and may have had a role in hastening the death of a cancer patient. And then there’s the flurry of panic as many of the tomatoes that American consumers take for granted every day suddenly disappear — from McDonald’s hamburgers; from the salsa at Chipotle Mexican Grill; from Burger King, Taco Bell and Sonic; and from the grocery shelves at Kroger, Wal-Mart and Target. Didn’t we just go through this with bagged spinach? With peanut butter? With pet food?
Because the FDA’s tomato-recall recommendation is so specific — including only three types, grown in certain regions during a certain time — and because many national chains pulled their tomato stock within days of the announcement, most of the infected samples have likely been removed. But the outbreak remains ongoing; its source has not yet been determined, and the government is investigating new cases every day. It may be a few more weeks before the delicious staple fruit is given the all-clear.
Taking tomatoes off shelves and menus may contain the outbreak, but it doesn’t explain it. On May 22, the New Mexico Health Department notified the Centers for Disease Control and Prevention that it knew of seven people recently infected with Salmonella Saintpaul, an unusual strand of the bacteria that accounted for only 400 of the 1.4 million cases of salmonella infection reported last year. And it was precisely because occurrences of the Saintpaul strand are so rare that the report caught the CDC’s attention. When Texas and a few other states reported cases of people being infected by bacteria with the same “genetic fingerprint,” a multistate search for Salmonella Saintpaul was launched. While the CDC tracked reported illnesses, the FDA interviewed victims to find out what they had eaten (and where). The common answer was tomatoes.
There have been 13 outbreaks of salmonella in tomatoes since 1990, which puts the fruit on the list of high-risk foods that are prone to infection. But unlike the bagged spinach from the 2006 E. Coli scare, the tomatoes don’t come with a traceable bar code. “When you’re dealing with tomatoes, it is much, much more complex,” explains Dr. David Acheson, the FDA’s associate commissioner for foods. The FDA’s great tomato hunt has an ever-expanding list of suspects. A salmonella victim can point to the supermarket (or restaurant) that sold the offending fruit, but that store probably sources its tomatoes from several suppliers, each of which uses several distributors — and distributors buy from any number of growers.
“Each set of questions just multiplies into a fan of information that has to be sorted through to understand where the links cross over,” says Acheson. Although the FDA has managed to rule out some regions — northern Florida is safe because its tomatoes weren’t ready for harvest at the time of the outbreak — it will be some time until the true source is found. “We’re not quite there yet,” says Acheson, “but we’re getting very close.” But Dr. Ian Williams, chief of the CDC’s OutbreakNet team, warns that the source may never be found due to the fruit’s short shelf life. “You don’t expect to find an infected tomato sitting on someone’s counter 10 days after the outbreak,” says Williams.
Still, the lag time between the initial outbreak and the government’s reaction is startling: the first Salmonella Saintpaul victim fell ill on April 16, but the FDA didn’t announce the tomato link until June 3. Williams says part of the problem identifying salmonella outbreaks is that a lot of victims don’t see the symptoms — diarrhea, fever, vomiting — as sufficiently severe to warrant a visit to the doctor, and so they go undiagnosed. “There may be a delay in reporting outbreaks because people do not have a stool specimen tested,” he says. Officials have not yet identified an infected tomato, and because of the fruit’s short shelf life, they probably never will.
The FDA unveiled a tomato-safety initiative in 2007 that sought to identify causes of salmonella infection, but Acheson admits that studying preventive techniques doesn’t help the FDA deal with outbreaks. The FDA has no plans to change the initiative in the face of the recent outbreak.
Even if the FDA can pinpoint the source of the outbreak, it’s hard for consumers to know where their tomatoes are grown. Certain imported foods are required to carry country-of-origin labels, but that doesn’t apply to domestic produce. “I’m not aware of any tomato outbreak that was not domestic,” says Acheson. There is no such thing as a mandatory state-of-origin label for food, and federal authorities have yet to create such a law. “Saying ‘product of the U.S.’ isn’t necessarily going to confer safety,” he says. So much for reassurance.
Vi ste jeben.
Authored by Keith Jeppson |
August 28th, 2007
Rooting Out the Rotten Tomatoes
Workers separate tomatoes at the sprawling Central de Abastos market in Mexico City on June 10
Gregory Bull / AP
So how much damage can a few rotten tomatoes really do? The tomato-linked salmonella outbreak announced by the Food and Drug Administration (FDA) on June 3 has claimed 228 victims in 23 states over 58 days (and counting). It has put 25 people in the hospital and may have had a role in hastening the death of a cancer patient. And then there’s the flurry of panic as many of the tomatoes that American consumers take for granted every day suddenly disappear — from McDonald’s hamburgers; from the salsa at Chipotle Mexican Grill; from Burger King, Taco Bell and Sonic; and from the grocery shelves at Kroger, Wal-Mart and Target. Didn’t we just go through this with bagged spinach? With peanut butter? With pet food?
Because the FDA’s tomato-recall recommendation is so specific — including only three types, grown in certain regions during a certain time — and because many national chains pulled their tomato stock within days of the announcement, most of the infected samples have likely been removed. But the outbreak remains ongoing; its source has not yet been determined, and the government is investigating new cases every day. It may be a few more weeks before the delicious staple fruit is given the all-clear.
Taking tomatoes off shelves and menus may contain the outbreak, but it doesn’t explain it. On May 22, the New Mexico Health Department notified the Centers for Disease Control and Prevention that it knew of seven people recently infected with Salmonella Saintpaul, an unusual strand of the bacteria that accounted for only 400 of the 1.4 million cases of salmonella infection reported last year. And it was precisely because occurrences of the Saintpaul strand are so rare that the report caught the CDC’s attention. When Texas and a few other states reported cases of people being infected by bacteria with the same “genetic fingerprint,” a multistate search for Salmonella Saintpaul was launched. While the CDC tracked reported illnesses, the FDA interviewed victims to find out what they had eaten (and where). The common answer was tomatoes.
There have been 13 outbreaks of salmonella in tomatoes since 1990, which puts the fruit on the list of high-risk foods that are prone to infection. But unlike the bagged spinach from the 2006 E. Coli scare, the tomatoes don’t come with a traceable bar code. “When you’re dealing with tomatoes, it is much, much more complex,” explains Dr. David Acheson, the FDA’s associate commissioner for foods. The FDA’s great tomato hunt has an ever-expanding list of suspects. A salmonella victim can point to the supermarket (or restaurant) that sold the offending fruit, but that store probably sources its tomatoes from several suppliers, each of which uses several distributors — and distributors buy from any number of growers.
“Each set of questions just multiplies into a fan of information that has to be sorted through to understand where the links cross over,” says Acheson. Although the FDA has managed to rule out some regions — northern Florida is safe because its tomatoes weren’t ready for harvest at the time of the outbreak — it will be some time until the true source is found. “We’re not quite there yet,” says Acheson, “but we’re getting very close.” But Dr. Ian Williams, chief of the CDC’s OutbreakNet team, warns that the source may never be found due to the fruit’s short shelf life. “You don’t expect to find an infected tomato sitting on someone’s counter 10 days after the outbreak,” says Williams.
Still, the lag time between the initial outbreak and the government’s reaction is startling: the first Salmonella Saintpaul victim fell ill on April 16, but the FDA didn’t announce the tomato link until June 3. Williams says part of the problem identifying salmonella outbreaks is that a lot of victims don’t see the symptoms — diarrhea, fever, vomiting — as sufficiently severe to warrant a visit to the doctor, and so they go undiagnosed. “There may be a delay in reporting outbreaks because people do not have a stool specimen tested,” he says. Officials have not yet identified an infected tomato, and because of the fruit’s short shelf life, they probably never will.
The FDA unveiled a tomato-safety initiative in 2007 that sought to identify causes of salmonella infection, but Acheson admits that studying preventive techniques doesn’t help the FDA deal with outbreaks. The FDA has no plans to change the initiative in the face of the recent outbreak.
Even if the FDA can pinpoint the source of the outbreak, it’s hard for consumers to know where their tomatoes are grown. Certain imported foods are required to carry country-of-origin labels, but that doesn’t apply to domestic produce. “I’m not aware of any tomato outbreak that was not domestic,” says Acheson. There is no such thing as a mandatory state-of-origin label for food, and federal authorities have yet to create such a law. “Saying ‘product of the U.S.’ isn’t necessarily going to confer safety,” he says. So much for reassurance.
Vi ste jeben.
Authored by Keith Jeppson |
August 22nd, 2007
Rooting Out the Rotten Tomatoes
Workers separate tomatoes at the sprawling Central de Abastos market in Mexico City on June 10
Gregory Bull / AP
So how much damage can a few rotten tomatoes really do? The tomato-linked salmonella outbreak announced by the Food and Drug Administration (FDA) on June 3 has claimed 228 victims in 23 states over 58 days (and counting). It has put 25 people in the hospital and may have had a role in hastening the death of a cancer patient. And then there’s the flurry of panic as many of the tomatoes that American consumers take for granted every day suddenly disappear — from McDonald’s hamburgers; from the salsa at Chipotle Mexican Grill; from Burger King, Taco Bell and Sonic; and from the grocery shelves at Kroger, Wal-Mart and Target. Didn’t we just go through this with bagged spinach? With peanut butter? With pet food?
Because the FDA’s tomato-recall recommendation is so specific — including only three types, grown in certain regions during a certain time — and because many national chains pulled their tomato stock within days of the announcement, most of the infected samples have likely been removed. But the outbreak remains ongoing; its source has not yet been determined, and the government is investigating new cases every day. It may be a few more weeks before the delicious staple fruit is given the all-clear.
Taking tomatoes off shelves and menus may contain the outbreak, but it doesn’t explain it. On May 22, the New Mexico Health Department notified the Centers for Disease Control and Prevention that it knew of seven people recently infected with Salmonella Saintpaul, an unusual strand of the bacteria that accounted for only 400 of the 1.4 million cases of salmonella infection reported last year. And it was precisely because occurrences of the Saintpaul strand are so rare that the report caught the CDC’s attention. When Texas and a few other states reported cases of people being infected by bacteria with the same “genetic fingerprint,” a multistate search for Salmonella Saintpaul was launched. While the CDC tracked reported illnesses, the FDA interviewed victims to find out what they had eaten (and where). The common answer was tomatoes.
There have been 13 outbreaks of salmonella in tomatoes since 1990, which puts the fruit on the list of high-risk foods that are prone to infection. But unlike the bagged spinach from the 2006 E. Coli scare, the tomatoes don’t come with a traceable bar code. “When you’re dealing with tomatoes, it is much, much more complex,” explains Dr. David Acheson, the FDA’s associate commissioner for foods. The FDA’s great tomato hunt has an ever-expanding list of suspects. A salmonella victim can point to the supermarket (or restaurant) that sold the offending fruit, but that store probably sources its tomatoes from several suppliers, each of which uses several distributors — and distributors buy from any number of growers.
“Each set of questions just multiplies into a fan of information that has to be sorted through to understand where the links cross over,” says Acheson. Although the FDA has managed to rule out some regions — northern Florida is safe because its tomatoes weren’t ready for harvest at the time of the outbreak — it will be some time until the true source is found. “We’re not quite there yet,” says Acheson, “but we’re getting very close.” But Dr. Ian Williams, chief of the CDC’s OutbreakNet team, warns that the source may never be found due to the fruit’s short shelf life. “You don’t expect to find an infected tomato sitting on someone’s counter 10 days after the outbreak,” says Williams.
Still, the lag time between the initial outbreak and the government’s reaction is startling: the first Salmonella Saintpaul victim fell ill on April 16, but the FDA didn’t announce the tomato link until June 3. Williams says part of the problem identifying salmonella outbreaks is that a lot of victims don’t see the symptoms — diarrhea, fever, vomiting — as sufficiently severe to warrant a visit to the doctor, and so they go undiagnosed. “There may be a delay in reporting outbreaks because people do not have a stool specimen tested,” he says. Officials have not yet identified an infected tomato, and because of the fruit’s short shelf life, they probably never will.
The FDA unveiled a tomato-safety initiative in 2007 that sought to identify causes of salmonella infection, but Acheson admits that studying preventive techniques doesn’t help the FDA deal with outbreaks. The FDA has no plans to change the initiative in the face of the recent outbreak.
Even if the FDA can pinpoint the source of the outbreak, it’s hard for consumers to know where their tomatoes are grown. Certain imported foods are required to carry country-of-origin labels, but that doesn’t apply to domestic produce. “I’m not aware of any tomato outbreak that was not domestic,” says Acheson. There is no such thing as a mandatory state-of-origin label for food, and federal authorities have yet to create such a law. “Saying ‘product of the U.S.’ isn’t necessarily going to confer safety,” he says. So much for reassurance.
Vi ste jeben.