Home News N. Utah housing market edges toward ‘normal’ as sales plunge and prices start to level off

N. Utah housing market edges toward ‘normal’ as sales plunge and prices start to level off

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Call it the “new anomaly” of our home.

Home sales across Wasatch Front — already Fall due to soaring prices Rising interest rates have plunged inventory shortages to deeper lows, according to data released Thursday.

From April to June, approximately 7,148 single-family homes were handed over across the five county areas centered around Salt Lake City. The number of quarterly sales is small. Sales were down almost 10% year-on-year, driven by Salt Lake County, where sales were down 15% year-on-year.

[Go to www.sltrib.com/homeprices to see home prices and sales in the five-county region by ZIP code.]

Condominium sales, usually more affordable, worsened, down 23% from this time last year.

(Rick Eagan | Tribune File Photo) A house for sale at Rose Park in April 2022.

However, if you are considering purchasing, you can get the following comforts: After months of slim picking In the second quarter, the active list of sellers surged 175% in the Salt Lake, Utah, Weber, Davis and Tooele counties. As a result, inventories have risen to near pre-pandemic levels.

Chief Economist of the Salt Lake Real Estate Commission Chem C. Gardner Institute of Policy Studies, University of Utah. “Utah’s real estate market is approaching normal after two years of enthusiastic markets where multiple offers are tens of thousands of dollars above the asking price.”

It’s getting closer, but it’s not there yet — or, as Eskic said, it’s “crazy normal”.

Prices have skyrocketed, but could slow

Prices continued to rise rapidly in the previous quarter, with the latest median single-family homes in Salt Lake County reaching $ 625,000, up nearly 20% from $ 525,000 in the previous year.

From a perspective, the same median was $ 300,000 six years ago.

Home prices rose 14% to 35% in April, May, and June on all Salt Lake County zip codes, with the exception of 84103, which includes Capitol Hill, Avenue, and Federal-Heights. In that region, the median fell slightly to $ 865,000.

Overall, the county’s most expensive zip code is 84108, extending from Foothill Drive to the Emigration Canyon, with a median selling price of $ 925,000 for the most recent quarter, followed by Draper’s $ 84020 ($ 880,200). )was. 84092 covers the eastern side of Sundi ($ 880,000); 84124 contains part of the Holiday and heads east towards Mount Olympus.

The cheapest district was in West Valley City at 84119, with a median of $ 438,750. 84006 ($ 410,000) in Copperton; 84104 ($ 409,000) across the Glendale district of Salt Lake City.

It will take more than a few months for the Federal Reserve’s inflation targeting rate hike (currently above 5% for standard 30-year mortgages) to significantly slow these price increases. There is a possibility.

(AP Photo / J. Scott Apple White, File) The Federal Reserve Board in Washington, DC raised interest rates this week after inflation was rampant, but it put a “sledge hammer” on the U.S. and Utah housing markets. It brought it, said one economist.

However, the early signs are beginning to surface. Homes in Salt Lake County have been on sale for almost 18 months above list price (often dramatically above). However, sometime in June, it began to turn around, and for the first time since May 2020, the selling price fell below 100% from the list price.

Dave Anderton, a spokesman for the Salt Lake Real Estate Commission, said: “In 2020 and 2021, the asking price started and people were earning $ 30,000, $ 50,000, or $ 100,000 beyond that.

“It’s gone, and there aren’t multiple offers,” he said.

It obviously already helps some buyers.

“We are a little lucky.”

Bill Hooper, a 64-year-old retired aerospace manager from Taylorsville, and his wife hope for a “flat sizing” to avoid having to walk up and down, a new home in Salt Lake City. I searched for about 18 months. Stairs.

The price range is over $ 1 million, but when I look at Millcreek, Cottonwood Heights, Sandy, Draper, and Midvale, I haven’t found anything yet. This means that until Tuesday, the couple closed their home on the same street, where they lived for almost 20 years, at a price well below budget.

“We didn’t end the fight for it,” Hooper said, adding that interest rates probably reduced some of the competition. “We were a little lucky in that regard.”

Utah’s home Eskic forecast price hike will continue to ease as interest rates rise further, but in the state The population is steadily increasing and the employment market is recovering rapidly.

“I don’t want to say they’re crashing,” he said, “but they’re dramatically slowing down.”

(Briana Scroggins | The Tribune Special) A home for sale at Edgewood Drive in Ogden. According to researchers, the city of Weber County is one of the first cities in the United States to see price premiums begin to fall as interest rates rise.

According to a national survey, Ogden in Weber County is Boise, Denver, Portland, Seattle, San Francisco, and Los Angeles.

“A fall in premium is an early warning sign that prices have leveled off and are likely to fall,” he said. Ken Johnson, Florida Atlantic University Real Estate Economist. “Look back at this point as the starting point for the downhill of the next housing cycle.”

Squeeze lessees and delay construction

All of this has a huge impact on Utah’s renters. Buyers aren’t eligible for a loan or can’t afford a monthly mortgage that is expected to surge by more than $ 1,200 in the coming months, forcing many to continue renting for sale. It is locked out of the market.

It puts upward pressure on rental demand, along with other pandemic-related factors such as immigration and soaring buildings, despite the construction of thousands of new apartments throughout Salt Lake City and Utah. Rents are skyrocketing.

(Leah Hogsten | Tribune File Photo) The old apartment building is in the shadow of a new high-rise apartment in downtown Salt Lake City.

Zamper, Earlier this week, an online apartment rental site reported that monthly rents for two-bedroom units in Salt Lake City were up 17% from this time last year to $ 1,590 and one-bedroom flats were $ 1,260 per month. According to the latest Zumper report, it ranks the Utah capital as the 55th most expensive rental market in the country.

Experts say these trends are likely to have a variety of implications for new home construction. According to a recent report, Utah is a nationwide leader in new homes and rentals as homebuilders scramble to catch up with an estimated 30,000-45,000 home shortages across the state.

However, Eskic said some builders could begin to recede as future buyers leave the market and demand further softens. “So it’s a bit like whac-a-mole,” he said. “You benefit one group, but someone else gets hurt.”

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