Home News Home sales down 41% in Utah; prices still up from one year ago

Home sales down 41% in Utah; prices still up from one year ago

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Sandy, Utah — Utah home sales in October were down nearly 41% from a year ago, but the median sales price rose 7% over the same period, according to the Utah Real Estate Association.

“The market has cooled rapidly this year as persistently high inflation and soaring borrowing costs have reduced buyers’ purchasing power,” the association’s monthly report said.

The median home sale price in Utah was $492,000 in October, compared with $460,000 a year ago. However, the price has fallen from its peak of $539,000 in May this year.

“The U.S. housing market is undergoing significant change, with affordability continuing to be an obstacle for buyers and sellers,” the report said. “Mortgage rates have doubled since March, and with limited housing supply, home prices continue to rise, but the pace of price increases is picking up.”

Stephanie Grable, a National Realtor of Keller Williams’ The Stern Team, said the market is moving toward a neutral market and consolidating into a buyer’s market.

“What we did during the pandemic was not sustainable. It was abnormal. It was not normal,” she said.

Grable said buyers and sellers are again negotiating prices, concessions and repairs.

“Before the pandemic, sellers and buyers were really negotiating,” she explained. “We forgot what it was like for about two years.”

The number of homes available for sale in Utah has increased nearly 94% since this time last year, with 12,237 active listings, according to the October Real Estate Report.

Grable expects more buyers to come back when interest rates fall. Until then, she reminds us, with twice as many homes on the market today, buyers have more choice and less competition.

“There are no bidding wars now,” she said. “So you have the option of getting the house you want and refinancing that interest rate later.”

Homes are on the market for an average of 46 days before an offer is accepted, the report said. That’s double his number of market days last October.

“Many homeowners are waiting to sell their homes until market conditions improve, while other sellers are increasingly cutting prices and offering concessions to attract more buyers.” the report said.

Homeowners who sold their homes in October received 94.9% of the original list price (concessions not taken into account). A year ago, the seller received 100.3% of the original list price.

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