A new study ranks northern Utah’s metropolitan areas among the top 10 slowest real estate markets. Still, two economists recommend home her shoppers rent rather than buy.
In the Salt Lake City and Provo Orem metropolitan areas, home prices have fallen sharply and sales have slowed sharply.
new reportIn fact, the Northern Utah region ranks 6th and 9th, respectively, among the top 92 city markets that see this reversal as interest rates rise.
Another analysis suggests that Salt Lake City, Ogden, and Provo may also be better places to rent than to buy a home.
By late August, the western states had the worst housing markets. Boise, Idaho. Austin, Texas. Phoenix; San Jose, California; Salt Lake City and Provo follow closely, according to an analysis by financial technology firm SmartAsset.
According to SmartAsset, the ranking is based on a composite score of two fundamental indicators: falling home prices and signs of slowing demand, both trends changing dramatically in both communities.
Salt Lake City’s inclusion on SmartAsset’s list is due to the high percentage of home listings that have seen price reductions (42%, or roughly two in five) and the number of monthly homes sold compared to last year. This is because the Utah’s capital city is also down 42% for him.
The Salt Lake Real Estate Association, which covers five county areas centered on Salt Lake County, said: Home sales drop across the Wasatch front Preliminary figures show a 27% increase in August and a 32% increase in September.
This equates to 400 to 500 households changing hands each month compared to the peak of the pandemic. At the same time, the median price for single-family homes in Salt Lake County appears to have hit a May high of $650,000, down at least 8% from its August high of $601,000.
“The bidding war is over,” said Commission Chairman Steve Perry.
The Provo-Orem area also saw significant price reductions, according to SmartAsset, with 45.6% of listings seeing price reductions, up from just over a quarter of Fall 2021 listings. New home listings in 2018 and August nearly doubled the number of homes sold.
Statewide, listings again surpassed 10,000 units. This is where he frequently stalled in 2018-2019 before COVID-19 and its impact on home buying intensified.
In 2020 and 2021, active listings dipped to 4,000 as demand increased and sellers were hesitant to list their homes.
The additional home listings help provide more options for prospective buyers compared to a year ago when inventory was low. But for many shoppers, the expected monthly payment for these homes, which in some cases he has doubled, is no longer affordable due to recent rate hikes. Hence the slowdown in sales.
florida real estate researcher Salt Lake City, Provo, and Ogden currently rank among the top U.S. cities where consumers should “strongly consider renting rather than buying.”
Their national rankings show that all 100 US markets surveyed are currently favoring renting over buying a home, but Ogden, Provo and Salt Lake City It was one of the cities with the highest trend.
Spokane, Washington tops the list, followed by Austin, Tennessee; followed. Estate.
Utah was one of four states with two cities in the top 10 cities, according to the researchers. The others were Texas, Washington, and North Carolina.