September 28, 2020
SALT LAKE CITY — In the wake of some record-setting heatwaves this past summer, the Salt Lake Valley’s housing market was also mirroring that blazing-hot streak.
The demand for new housing stock has risen to historic levels.
A big upward trend in the national housing market has continued based on the latest new home sales data from the U.S. Census Bureau. The figures show new single-family home sales up 43.2% year-over-year in September.
A report from Robert Charles Lesser and Company, a data analytics and strategic planning firm for the real estate industry, states increased market demand is being driven by low interest rates for homebuyers, demographic shifts, along with changing consumer attitudes about where they choose to reside in the era of the new coronavirus.
The report notes that given the fact there is just a 3.3-month supply of new homes available, the current pace of robust sales may not sustainable in the long term.
Considering various factors, including the current sales pace, rising lumber costs and availability of suitable land, there are strong indications that demand for new housing will remain high, However, builders may have trouble keeping up, one Utah observer said.
Jaren Davis, CEO of the Salt Lake Home Builders Association, said demand for new housing has been overwhelming producers’ capacity to provide units, particularly as more and more people choose to make the Beehive State their home.
While the influx of new residents is a major driver in the demand for housing, he said keeping up the supply is also an ongoing challenge.
“The existing house inventory is readily available and the transaction occurs (immediately),” he said. “But in new construction, there isn’t a lot of spec housing out there, meaning the builders built something waiting for the buyers to come in. So what happens when the consumer comes into our assets, they actually agree to a longer term buildout. They’re looking at a plat map, identifying a lot that they want and then getting on a schedule for the construction and that oftentimes would take as long as six months.”
He added that the build-out phases could also be long if the home is larger or has specific features that require more time to construct. The robust demand has also put more pressure on builders to produce a greater volume at a high rate.
The high demand is straining the existing home market as well. The Salt Lake Board of Realtors reported that sales in Salt Lake County for July were the highest on record in the history of the Multiple Listing Service — more than 2,100 sales. It was the first time sales eclipsed the 2,000 mark. Sales last month were also up slightly, the report states.
Meanwhile, Davis noted that the construction industry was designated as an essential service during the COVID-19 pandemic, which has allowed builders to continue producing much needed housing stock.
“You still had that mindset for the social distancing. In our industry, we naturally social distance, the framers aren’t standing next to the plumbers — they’re coming in at different times and they’re standing in different parts of the home,” Davis explained. “We absorbed that fallout from those first months (of the pandemic), had some slowdown in the construction and they’re now back up to full steam.”
He said even at full capacity, the industry still cannot keep up with the demand from prospective buyers.
“If we could build enough inventory for the demand, we would probably be twice as busy,” he said. “Existing housing follows new construction. If there isn’t enough inventory in new construction, prices go up. Because of our lack of ability to meet that demand, prices are pushed upward because there is a shortage of inventory.”
He said those rising prices are putting tremendous pressure on affordability across the Wasatch Front.
Analysts contend the high demand has been exacerbated by the lack of existing home inventory for sale. Dejan Eskic, senior research associate at the University of Utah’s Kem Gardner Institute, said the pandemic prompted many potential sellers out of the market due to fears raised during the initial outbreak in the spring.
“We’ve seen a lot of existing for-sale inventory pull back, so we’re about 52% or so behind where we are usually with existing sales inventory this time of year and throughout the summer,” he said, “That’s created a kind of bottleneck. You have this pent up demand who want to buy, but they have nowhere to go.
“You have the global health pandemic issues as well, people are not comfortable having people walk into their homes,” Eskic said. “They don’t want to move in a pandemic, so that’s preventing them from putting their house on the market as well. You’re seeing this in our market and across the nation, we’re really short on existing home sales.”
Regarding affordability, he said Utah faces the daunting prospect of becoming like California is today where many residents cannot afford to rent or buy based on their typical household wages.
“Really, it comes down to income. Between 2013 and 2018 — that five-year period, income (in Utah) has gone up 18% while housing prices have gone up over 65%,” Eskic said. “In comparison, if we go back to this May and April when this whole thing started, the median price of a single-family home in the state of Utah was about $365,000, now it’s $399,000. That’s about 9% in just five to six months.”
He said civic leaders need to work on some possible solutions or risk the situation worsening.
Utah has the best economy of all states, according to USA Today. “At a time when COVID-19 has sent unemployment soaring into the double digits across much of the country, Utah's monthly jobless rate stands at 5.1 percent, less than half of the 11.1 percent national unemployment rate for June,” the article stated. “Even before the coronavirus hit American shores, economic conditions in Utah were far stronger than they were in most of the country."
Q2 STATS SHOW INCREASED VALUE &
DECREASED TIME ON MARKET
June 22, 2020
SALT LAKE CITY — Sales of existing homes in Utah tumbled in May, but analysts and real estate agents said the market is experiencing strong activity and price increases as summer begins.
“We didn’t slow down, really,” said Christy Vail, with the Utah Association of Realtors. “There might have been two or three weeks where it was a little quiet, but overall, I think people are very positive and forward-thinking about home buying.”
Vail said Utah is faring better than other states and that demand is high right now, partly due to new buyers entering the market because of the low mortgage rates.
“We definitely are seeing multiple offers — that has not changed,” she said.
The Utah Association of Realtors reports that the median sales price for existing homes in Utah is up 4% this year. Nationally, the price increase is 2.3%.
Researchers at the University of Utah’s Kem C. Gardner Policy Institute said the state’s ongoing housing shortage is putting upward pressure on prices.
“Prices aren’t going down,” said research analyst Dejan Eskic. “As a matter of fact, they are still up over last year when we compare month-to-month.”
That housing shortage could get worse, Eskic warned, since the pandemic caused a slowdown in construction during April and May.
“We’re forecasting about a 10% to 12% decline in housing construction-related activity for the year,” he said.
Sales of existing homes in Utah dropped 22% in May when compared to the same month last year, according to preliminary data for the Utah Association of Realtors. Nationally, year-over-year, home sales dropped 26.6% in May.
The COVID-19 pandemic hit just as the busy, springtime home-buying season would have started, possibly delaying completed transactions until now. In fact, the association of realtors said the number of homes currently under purchase contracts is outpacing last year by about 25%.
Some of the summer demand could also be the result of Utah residents being more aware of their housing situations after spending so much time inside their current home because of the pandemic.
“I think people are a little bit more cognizant of their living space and their needs,” Vail said. “And two, I think there are many thoughts of maybe downsizing a little bit.”
Contract signings dropped in March as many housing markets paused as the coronavirus outbreak spread across the country.
The National Association of REALTORS®’ Pending Home Sales Index, a forward-looking indicator based on contract signings, dropped 20.8% in March compared to February. All four major regions of the U.S. saw a drop in contract activity last month.
Contract signings are down 16.3% compared to a year ago.
“The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listing and new contracts,” says Lawrence Yun, NAR’s chief economist. “As consumers become more accustomed to social distancing protocols, and with the economy slowly and safely reopening, listings and buying activity will resume, especially given the record low mortgage rates.”
Yun acknowledges the typical spring buying season will be missed this year due to the pandemic. Further, a “bounce back later in the year” will likely be insufficient to make up for the loss of sales in the second quarter, he adds. Home sales are projected to decline 14% for the year.
Social distancing protocols due to the pandemic have caused the real estate industry to quickly adapt their businesses. Home buyers are still finding ways to proceed. Fifty-eight percent of real estate professionals report that buyers are using virtual tours, and 43% report buyers are taking advantage of e-closings, according to an NAR Flash Survey conducted of real estate professionals between April 19 and 20.
Also, home prices are staying firm. “Although the pandemic continues to be a major disruption in regards to the timing of home sales, home prices have been holding up well,” Yun says. “In fact, due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high.”
Yun projects the national median home price to increase 1.3% for 2020. However, he cautions there will be many local market variations. Also, the upper end of the market will likely face a reduction in home prices.
On the heels of a roller-coaster stock market and emergency rate cut from the U.S. Federal Reserve as fears about the spread of coronavirus (COVID-19) impact the U.S., mortgage rates hit a historic low this week. The average 30-year fixed-rate mortgage plummeted to 3.29 percent, an all-time low, according to Freddie Mac.
“The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history,” Freddie Mac Chief Economist Sam Khater said in a statement. “Meanwhile, mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down.”
“Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”
Last week, the 30-year fixed-rate mortgage averaged 3.45 percent and at this time last year, it averaged 4.41 percent. The 15-year fixed-rate mortgage averaged 2.79 percent, down from 3.83 percent at this time last year. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18 percent, down 3.87 percent at this time last year.
Ruben Gonzalez, the chief economist at Keller Williams, said the recent downward trend in the 10-year Treasury yield, in response to coronavirus concerns, has been pointing to the potential of record-low mortgage rates for some time.
“So far, the perceived risk in the real estate market appears to be low based on the path of the spread between 30-year mortgage rates and the 10-year Treasury, though it has trended higher over the previous two weeks,” Gonzalez said.
Those same forces driving rates down could eventually drive up the concerns of the risk to the overall economic climate of the country, which in turn could impact the housing market. But in the near term, lower rates should provide a boost in demand, even as inventory remains low, Gonzalez said.
“While buyers may already be somewhat wary due to the potential of a larger outbreak, most cities so far are not directly impacted by COVID-19,” Gonzalez said. “We are certainly keeping an eye on how the situation is developing and evaluating what kind of logistical challenges may develop in our industry.”
In New York City specifically, agents told Inman that they’re seeing prospective homeowners incentivized to buy right now.
“Buyers, even first time purchasers, seem more motivated rather than deterred due in part to the effect the outbreak is having on the stock markets,” Kristen Jock, an agent with Compass, said. “With talk of rates dropping more, it is actually incentivizing investment in homeownership.”
SANDY — While the cost of buying a home in the Salt Lake City metro area is predicted to rise to record levels in 2020, the number of people buying homes is also expected to reach historic levels for the second year in a row.
And the building pressure isn’t just in Salt Lake County, a real estate group says.
“You’re seeing it in the rural areas as well,” Utah Association of Realtors President Dave Robison said. “One of the best performing counties was Box Elder County, their sales went up 15%, and then Summit County went up 15%, Utah County went up 12%.
“One of the interesting statistics right now — this is the first time I’ve ever seen it — but Utah County has more homes for sale on the market than Salt Lake County,” he added.
The Utah Association of Realtors reported last week that homes sales in Utah climbed to a record high of 54,274 in 2019 — the most since the organization began keeping records in 2003, according to Robison. That exceptional sales activity is due to various reasons.
“It’s people moving in from out of state (and) it’s our low unemployment,” he said. “It’s our own population growing. It’s multiple factors.”
He said the high demand has resulted in rising sales prices for properties as well, with the median price statewide registering at $320,000 last year — up 7.7% from 2018. The number of homes sold for less than $300,000 declined 12% because the supply of such properties has dwindled over the years “because they don’t exist; they are disappearing,” he added.
Robison attributed the sales spike in other counties to the fact many prospective homeowners are priced out of the market in some of the more established, sought-after areas along the Wasatch Front.
Utah County has more homes for sale on the market than Salt Lake County.
“This is kind of why Box Elder County is booming right now, because of affordability. It’s more affordable,” he said.
The pressure on prices isn’t likely to let up soon.
“Right now, it doesn’t look like it’s going to flatten out at all, simply because we have a shortage of homes and we have a high demand,” Robison said. “The builders are not building fast enough for our demand.”
He said that from 1980 through 2006, local homebuilders “overbuilt” by 10% of what market demand was, however, that isn’t happening in the current market environment. In fact, the Realtor group’s data showed the housing affordability index fell nearly 7% in 2019 to register at 96.
This index measures housing affordability for the region. The report noted that an index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. The index declined from 120 in 2017 down to 103 in 2018, before dropping to 96 last year.'
Robison added that local municipalities are struggling with meeting the growing housing demand in a climate of ever-increasing home prices. One solution could be higher density units, like twin homes and condominiums, he said.
“The bulk of what people are going to be able to afford is going to be townhomes and condos,” he said. “Because it’s simple, it’s just going to be too expensive to own a single-family home anymore.”
He added that due to construction costs, consumer demand and the land costs, developers may move in the direction of building more townhomes as a way to maintain profitability. He said cities will also have to create building ordinances that support the development of more densely populated housing units, which has not always been popular in many Salt Lake area communities.
Meanwhile, he said if interest rates remain low as they have been lately, then prospective buyers will likely continue to flood the market, which will be good for Utah homeowners who are receiving greater and greater amounts for their properties over the past decade.
“When you look at interest rates, if interest rates go up a point, it reduces (homebuyers’) purchase ability by almost 12%. The interest rates being low, makes it very, very favorable for a buyer,” Robison said. “Now, for sellers, it’s definitely favorable for their selling price because we’re seeing the highest median price range we’ve ever had. So, it’s definitely favorable for them.”
Source: "Utah Home Sales Hit New Heights in 2019; Trend Expected to Continue," Jason Lee. KSL.com. Dec 20, 2019.
Utah home prices increased at the fourth-highest rate of all states in the 12-month period ending Sept. 30, according to FHFA. In Utah, prices during the period increased 7.84 percent. At 11.55 percent, Idaho saw the biggest home-price gains in the nation. Illinois ranked last, with home prices inching up 1.89 percent. Nationally, home prices increased 4.94 percent.
Copyright Salt Lake Board of Realtors®. December 16, 2019.
MEDIAN SINGLE-FAMILY HOME PRICE SURPASSES $380,000
Salt Lake County home prices climbed to an all-time high in the third quarter, according to the Salt Lake Board of Realtors®. The median single-family home price in the July-through-September period reached $381,500. That's up 7.5 percent compared to a median price of $355,000 in last year’s third quarter. Just three years ago, the median single-family home price reached $300,000, which was then an all-time high price. The previous peak home price was in the third quarter of 2007, when home prices topped $256,000 (or $298,085 in inflation-adjusted dollars). Home prices increased across all Wasatch Front counties including: Davis, up 6.2 percent; Tooele, up 2.6 percent; Utah, up 4.4 percent; and Weber, up 10.3 percent. Sales of single-family homes in Salt Lake County were flat (up 0.7 percent) in the third quarter year-over-year. Davis County saw sales increase 9.8 percent. Sales in Tooele County were up 4.7 percent. Utah County sales were up 11.8 percent. Sales in Weber County were up 12.1 percent. In the third quarter, the typical Salt Lake home was on the market 37 days before it sold – six days longer than the average time for a home to sell during the third quarter of 2018.
Copyright Salt Lake Board of Realtors®. November 18, 2019.
Utah had the second highest house-price appreciation of all states in the second quarter year-over-year, according to a new report by the Federal Housing Finance Agency. In the 12 months ended June 30, house prices in the Beehive State increased 7.73 percent. Only Idaho showed greater house appreciation over the same period. Rounding out the top five states were Tennessee, Georgia and Arizona. At 1.21 percent, Delaware had the lowest appreciation. The index is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.
Copyright September 2019. Salt Lake Board of Realtors®.
It’s been another amazing summer for real estate along the Wasatch Front! Lately, there has been some talk about changes in the future, but according to the data below, the housing market in Utah has been steady and solid.
Utah typically follows behind other major markets like parts of California, Las Vegas and Phoenix. The one huge advantage we have is our job market and stable population. Look at the number of new listings vs the number of homes under contract (below)!
Salt Lake County is currently at a little over 1.5 months worth of inventory; Utah County is slightly over 2 months; Davis County is just above 1.3 months (respectively). All three counties are very much Sellers' Markets. Most real estate professionals would say a "Flat Market" is usually around 4 months of inventory.
MAY HOUSING WATCH
TWO CONSECUTIVE MONTHS OF RISING HOME SALES
More homes were sold in May compared to May 2018 in Salt Lake County and Davis counties, according to UtahRealEstate.com. In Salt Lake County, home sales were up 10 percent. The gains followed a strong showing in April. Previously, sales had been down in Salt Lake County for six consecutive months (October through March).
The price of homes continued to rise. In Salt Lake County, the median price of homes (all housing types) sold in May was $348,989, up 9 percent compared to the May 2018 median price. In Davis County, the median price increased 10 percent to $330,000.
Nationally, total existing-home sales were down 1.1 percent from a year ago (5.40 million in May 2018). The median existing-home price for all U.S. housing types in May was $277,700, up 4.8 percent from May 2018 ($265,100). May's price increase marks the 87th straight month of year-over-year gains.
Properties across the nation remained on the market for an average of 26 days in May, up from 24 days in April and equal to the 26 days in May of 2018. Fifty-three percent of homes sold in May were on the market for less than a month.
Realtor.com®'s Market Hotness Index, measuring time-on-the-market data and listing views per property, revealed that the hottest metro areas in May were Rochester, N.Y., Fort Wayne, Ind,; Lafayette-West Lafayette, Ind.; Boston-Cambridge-Newton, Mass,; and Midland, Texas.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.07 percent in May, down from 4.14 percent in April. The average commitment rate across all of 2018 was 4.54 percent.
First-time buyers were responsible for 32 percent of homes sales in May, unchanged from 32 percent the month prior, and up from 31 percent recorded in May 2018. NAR's 2018 Profile of Home Buyers and Sellers - released in late 2018 - revealed that the annual share of first-time buyers was 33 percent.
All-cash sales accounted for 19 percent of transactions in May, down from April a year ago (20 percent and 21 percent, respectively). Individual investors, who account for many cash sales, purchased 13 percent of homes in May, down from 16 percent in April, and from 14 percent a year ago.
Distressed sales - foreclosures or short sales - represented 2 percent of sales in May, down from 3 percent in April, and from 3 percent in May 2018. Less than 1 percent of May 2019 sales were short sales.
Source: Salt Lake Realtor Magazine®. June 2019.
Salt Lake City's Home Prices Keep Climbing
BIG PRICE GAINS IN UTAH HOUSING MARKETS:
OGDEN, SALT LAKE CITY, & PROVO
The housing markets of Salt Lake City, Provo, Ogden and other Northern Utah cities outpaced the nation in 2018, in terms of home-price gains. They’re expected to do more of the same through 2019 and into 2020.
Here is Zillow’s forecast for the Ogden housing market: “Ogden home values have gone up 20.0% over the past year and Zillow predicts they will rise 12.5% within the next year.” They also labeled this real estate market as being “hot” in spring 2019, based on the average time on market, frequency of price cuts, and other factors.
The chart below, provided by Zillow on April 1, 2019, shows the stunning rise of home prices in Ogden, Utah. It also shows the company’s forecast for this particular housing market, into the spring of 2020 (green shaded area).
Chart: Zillow’s home value index for Ogden, Utah.
EXISTING HOME SALES REBOUND IN FEBRUARY
In February, existing home sales experienced their largest monthly gain in four years, according to the latest report from the National Association of Realtors.
Total existing home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, spiked 11.8% from January to a seasonally adjusted rate of 5.51 million in February, the highest monthly increase since December 2015. However, the report reveals sales are 1.8% below February 2018’s rate.
NAR Chief Economist Lawrence Yun said a powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound.
The median existing home price for all housing types increased to $249,500 rising 3.6% from last February’s rate of $240,800. This marks the 84th straight month of year-over-year gains.
Total housing available for sale increased from January, moving forward from 1.59 million existing homes on the market to 1.63 million in February. Notably, this is a 3.2% increase from last year’s total of 1.58 million.
“The housing market is poised for a rebound as existing-home sales soared in February after hitting an over three-year low last month,” Trulia Chief Economist Cheryl Young said. “With spring home buying season around the bend, sliding mortgage rates and moderating home prices will continue to boost demand and drive sales.”
Copyright, National Association of Realtors®. March, 2019.
SALT LAKE COUNTY HOME SALES FALL FOR FOURTH CONSECUTIVE MONTH
Salt Lake area homes sales (all housing types), fell in January to 898 units sold, a 17 percent drop compared to 1,077 units sold in January 2018. It was Salt Lake County's fourth consecutive month of falling home sales year-over-year.
In Davis County, there were 269 units sold in January, a 10 percent decline compared to the same month a year ago. It was the second consecutive month of falling sales for Davis County.
Meanwhile, the median price of homes sold in January continued to increase. In Salt Lake County, the median price in January increased to $320,375, an 8 percent rise compared to a median price of $296,500 in January 2018. In Davis County, the median home price hit $315,000, a 15 percent increase compared to median price of $275,000 a year earlier. Nationally, home sales (all housing types), were down 9 percent in January compared to January 2018, according to the National Association of Realtors®.
Lawrence Yun, NAR's chief economist, sad January home sales of 4.94 millions were the lowest since November 2015. However, Yun does not expect the numbers to decline further going forward. "Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months."
The U.S. median existing-home price for all housing types in January was $247,500, up 3 percent from January 2018 ($240,800). January's price increase marks the 83rd straight month of year-over-year gains.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.46 percent in January from 4.64 percent in December. The average commitment rate for all of 2018 was 4.54 percent.
Nationally, all-cash sales accounted for 23 percent of transactions in January, up from December and a year ago (22 percent in both cases). Individual investors, who account for many cash sales, purchased 16 percent of homes in January, up from 15 percent in December, but down from a year ago (17 percent).
Copyright, Salt Lake Board of Realtors®. February 2019.
Surging prices and limited supply pushed home sales on the Wasatch Front to their lowest level in three years, with Utah’s urban counties seeing significant market slowdowns as 2018 ended. Full pricing and sales data by ZIP code illuminate what is now an extended trend.
As prices and mortgage interest rates continued to rise, 6,781 single-family homes changed hands over the five-county area in the past three months, nearly 9 percent fewer than sold in fall 2017, according to new figures published Monday by the Salt Lake Board of Realtors.
All five Wasatch Front counties saw home sales decline for the fourth quarter of 2018, according to the latest data, ranging from 4 percent down in Weber County and 5 percent in Davis, to an 11 percent drop in rapidly growing Utah County and a sizable 14 percent decline in Tooele County. Sales for October, November and December fell 10 percent in Salt Lake County.
Prices, meanwhile, leapt over the same period. In Salt Lake County, the median home price stood at $350,000 at year’s end, fully $25,000 higher than it was in those same three months a year prior. Across the wider Wasatch Front, the median home price was at $334,000, 11 percent higher year over year.
Several experts said Monday the sustained trend of rising prices had combined with hikes in mortgage rates to force some first-time buyers out of the market. For the population center of Salt Lake County, the 2018 sales decline came after total homes sales for 2017 dipped about 1 percent below their levels for 2016, the county’s third highest year for sales on record.
“While new listings are on the rise, overall inventory levels are not keeping up with homebuyer demand,” Scott Robbins, president of the Salt Lake Board of Realtors and a Draper-based agent with Sotheby’s International Realty, said in a statement.
The new data also come as issues in Utah with housing affordability are claiming the attention of city officials, business leaders and state lawmakers. According to the board’s latest report, six ZIP codes along the Wasatch Front now have median home prices above $500,000:
• 84004; Alpine ($577,500)
• 84103; (spanning the Avenues), Salt Lake City ($562,580)
• 84020; Draper ($530,000)
• 84310; Eden ($529,200)
• 84108; East Bench ($521,125)
• 84117; Holladay ($519,500)
• 84664; Mapleton ($491,406)
• 84095; South Jordan ($488,800)
•84093; Sandy ($480,000)
•84317; Huntsville ($480,000)
Experts say that even though new homes are coming on line along the Wasatch Front, a combination of rising costs for undeveloped land, building materials, construction labor and other items continues to push up median housing prices.
And in further evidence of market tightening, the quarterly data released Monday also show a typical Wasatch Front home listed for sale was on the market for only 40 days before it sold, three days shorter than for the fourth quarter of 2017.
A representative for one of the region’s major lenders predicted that additional interest rate hikes by the Federal Reserve in 2019 could further depress buyers’ purchasing power and leave more Utahns struggling to afford a new mortgage, even as job and wage growth in Utah continue to drive home demand.
“Affordability has become an issue,” said Roger Jones, senior vice president and mortgage division manager for Zions Bank, who added that would-be first-time buyers and existing homeowners seeking to move up in the market were both being sidelined.
Jones predicted that some buyers would be drawn to mortgages with adjustable interest rates that locked in lower rates in the first years, as a hedge against the possibility of rate upticks through 2019 and beyond.
Many ZIP codes with the highest volume of fourth-quarter 2018 home sales nonetheless saw year-over-year declines. Data show sales were strongest in Clearfield, Farr West, Lehi, Herriman, Layton, Eagle Mountain, Kearns and Roy.
Of 36 ZIP codes within Salt Lake County, only nine saw home sales at the end of 2018 that exceeded sales for the same period a year before — all are areas on the Salt Lake Valley’s western and southern suburbs.
And of 21 ZIP codes in Utah County, only six had higher fourth-quarter sales in 2018 than the year before, centered on Lehi, Provo, Alpine and Mapleton.
The fourth-quarter picture for condominium sales, often an indicator of buyers seeking bargains, was mixed.
Prices for condos rose dramatically in all five Wasatch Front counties, ranging from 8.1 percent in Davis County to 17.8 percent in Weber County. But sales were flat or declined slightly in Weber, Utah and Salt Lake counties, leapt by a dramatic 36.8 percent in Tooele County and plunged by 23 percent in Davis County.
Copyright, Salt Lake Board of Realtors®. January 2019.
Copyright, UtahRealEstate.com. January 2019.
COUNTIES SEE RISE IN HOME SALES
Salt Lake home sales in July increased 2 percent year-over-year, reversing two consecutive months of declines, according to the Salt Lake Board of Realtors®. There were 1,651 units sold (all housing types) in Salt Lake County in July. Nearly, three of four units sold (74 percent) were for single-family homes. Davis County saw its sales rise 3 percent in July.
The median price continued to skyrocket. In Salt Lake County, the median price of a home sold in July climbed to $329,900, up 12 percent compared to the median price in July 2017. In Davis County, the median price increased to $310,000, up 11 percent year-over-year.
Nationally, existing-home sales subsided for the fourth straight month in July, to their slowest pace in over two years, according to the National Association of Realtors®. The West was the only major region with an increase in sales last month.
"Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market," said Lawrence Yun, NAR chief economist. "Listings continue to go under contract in under a month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties. Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand."
First-time buyers were 32 percent of sales in July, which is up from 31 percent last month but down from 33 percent a year ago. NAR's 2017 Profile of Home Buyers and Sellers - released in late 2017 - revealed that the annual share of first-time buyers was 34 percent.
"Despite first-time buyers struggling to achieve homeownership, Realtors® in most areas say demand is still the strongest at the entry-level segment of the market, said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. "For prospective first-timers looking to begin their home search this fall, it is expected that competition will remain swift. That is why it's important to be fully prepared with a pre-approval from a lender, and to begin conversations with a Realtor® early about what you're looking for and where."
All-cash sales were 20 percent of transactions in July, down from 22 percent in June, but up from 19 percent a year ago. Individual investors (who account for many cash sales), purchased 13 percent of homes in July (unchanged from last month and a year ago). Distressed sales - foreclosures and short sales - were 3 percent of sales in July (lowest since NAR began tracking in October 2008), unchanged from last month and down from 5 percent a year ago. Two percent of July sales were foreclosures and 1 percent were short sales.
Copyright, Salt Lake Board of Realtors®. September 2018.
SALT LAKE MEDIAN HOME PRICE CLIMBS TO $352,500
Salt Lake County home prices continued to climb in the second quarter of 2018, according to the Salt Lake Board of Realtors®. The median single-family home price in the April-through-June period, increased to $352,500, up 7.8%...compared to a median price of $327,000 in last year's second quarter. Home prices increased across all Wasatch Front counties including: Davis, up 9.8%; Tooele, up 20.9%; Utah, up 10.1%; and Weber, up 9.6%. The median sales price of Salt Lake County condominiums, also increased in the second quarter to $237,300, up 5.5%, compared to a median price of $225,000 a year earlier.
Copyright, Salt Lake Board of Realtors®. June 2018.
HOME SALES FALL IN MAY
Copyright Salt Lake Board of Realtors® July 2018.
UTAH IN TOP 10 FOR INCREASED HOUSE PRICES
Utah ranks in the Top 10 states when it comes to the highest percent change in house appreciation, according to the House Price Index by the Federal Housing Finance Agency. The report noted that Utah home prices have appreciated 46.03 percent in the past five years. Nevada posted the highest appreciation at 81.84 percent. Connecticut was the lowest at 7.91 percent. The U.S. five-year average was 34.71 percent. Salt Lake City ranked No. 22 of 383 U.S. metropolitan areas in highest appreciation. Over the past five years home prices in the Salt Lake City area have increased 47.24 percent. The HPI is a broad measure of the movement of single-family house prices. It serves as a timely, accurate indicator of house price trends at various geographic levels.
Copyright Salt Lake Board of Realtors® May 2018.
The median price of a single-family home sold in Salt Lake County in 2017 climbed to $325,000, up 10 percent compared too $295,000 in 2016. The cumulative median days a single-family home was on the market in 2017 was 15. Nearly three-of-four (71 percent) single-family homes sold in 2017 were priced under $400,000. Twenty-one percent of single-family homes sold in 2017 were priced between $400,000 to $599,999. Just 8 percent of all sales were for homes sold at $600,000 or more.
Copyright Salt Lake Board of Realtors® February 2018.
Salt Lake County home sales posted positive gains in November year-over-year. Total sales (all housing types) increased 1 percent to 1,439 units sold, up from 1,418 units sold in November 2016. November was the second consecutive monthly increase of home sales on a year-over-year basis.
The median price of homes sold in November in Salt Lake County increased to $302,000, up 13 percent year-over-year. The median cumulative days a house was on the market in Salt Lake County was 26 days, up from 18 days in November 2016.
In Davis County, home prices increased 2 percent to a median price of $265,000. Home sales in November fell 7 percent in Davis County.
Nationally, total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 3.8 percent higher than a year ago and are at their strongest pace since December 2006 (6.42 million), according to the National Association of Realtors®. Across the country, unsold inventory is at a 3.5-month supply at the current sales pace, which is down from 4.0 months a year ago.
"The anticipated rise in mortgage rates in 2018 could further cut into affordability if these staggeringly low supply levels persist," said NAR Chief Economist Lawrence Yun. "Price appreciation is too fast in a lot of markets right now. The increase in homebuilder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages."
First-time homebuyers were 29 percent of sales in November, which is down from 32 percent both in October and a year ago. NAR's 2017 Profile of Home Buyers and Sellers - released earlier this year - revealed that the annual share of first-time buyers was 34 percent.
Copyright Salt Lake Board of Realtors® January 2018.
Salt Lake County home sales were up in October. This followed a six-month decline in monthly sales year-over-year. For the month, 1,617 homes (all housing types) were sold, up 8 percent compared to 1,500 sales in October 2016. From January through October, there were 15,103 total units sold, a 1 percent decline from 15,305 homes sold during the same period last year.
Copyright Salt Lake Board of Realtors® December 17, 2017.
The price of a single-family home has increased to its highest point ever before. In the July-August-September quarter, the median price of a Salt Lake County single-family home increased to nearly $330,000, a 10 percent rise year-over-year and a 67 percent climb (nominal dollars) compared to the third quarter of 2011 when home prices bottomed at $197,000. Adjusted for inflation, home prices today are 54 percent higher than in 2011.
The top 10 most expensive Wasatch Front ZIP codes in the third quarter were:
1. The Avenues (84103) $608,000, up 22%
2. Emigration Canyon (84108) $550,000, up 16%
3. Alpine (84004) $497,000, up 5.9%
4. Draper (84020) $465,000, up 5.0%
5. Holladay (84117) $465,000, up 21%
6. Eden (84310) $460,900, up 7%
7. Holladay (84124) $456,000, up 11%
8. Sandy (84092) $449,000, up 12%
9. South Jordan (84095) $441,592, up 8%
10. Canyon Rim (84109) $428,850, up 6%
Sales of single-family homes in Salt Lake County fell to 3,442 units sold in the third quarter, a 9 percent drop compared to sales a year ago during the same period. Home sales were down 1 percent in Davis County, down 2 percent in Tooele County, down 4 percent in Utah County, and up 0.4 percent in Weber County.
The 10 hottest ZIP codes for sales of single-family homes were:
1. Clearfield (84015) 334
2. Tooele (84074) 306
3. Lehi (84043) 284
4. Farr West (84404) 279
5. Herriman (84096) 223
6. Eagle Mountain (84005) 219
7. Roy (84067) 215
8. West Jordan (84081) 190
9. South Ogden (84403) 188
10. Kearns (84118) 185
Condominium sales in Salt Lake County increased to 1,179 units sold in the third quarter, up 1 percent compared to 1,171 units a year ago. The medium price of a condo reached $219,000, up 10 percent compared to $200,000 in the third quarter of 2016.
2017 President, Salt Lake Board of Realtors®
Copyright Salt Lake Board of Realtors®. October 27, 2017.
Higher home prices and limited housing inventory in Salt Lake County pushed home sales of all housing types down 6 percent in August, the fifth consecutive month of falling sales. Year-to-date, home sales are down 3 percent for the January through August period. In neighboring Davis County, home sales increased 2 percent. Meanwhile, home prices (all housing types) continued to rise, which is good news for home owners, who are seeing increased equity. The median sales price in Salt Lake County climbed to $291,200 in August, up 8 percent compared to $270,000 in August 2016. There is roughly a two-month supply of housing inventory in Salt Lake County, continuing a strong seller’s market. This means if no new listings were added to the market, existing housing inventory would be sold in two months.
Copyright. Salt Lake Board of Realtors. October 2, 2017.
Wasatch Front home prices in this year’s second quarter climbed to their highest point ever. The median Wasatch Front home price reached $300,000, up from $275,000 a year ago. In Salt Lake County, the median single-family home price was $327,000, a 10 percent increase from last year.
The top five most expensive housing areas by ZIP code in the second quarter were:
1. Emigration Canyon (84108) $561,000, up 19.4%
2. The Avenues (84103) $502,000, up 2.7%
3. Eden (84310) $501,000, up 24.5%
4. Alpine (84004) $497,000, up 5.9%
5. Draper (84020) $482,250, up 8.0%
Competition is fierce for homes priced under a half-million dollars. Many sellers continue to make the sale of their home contingent on them finding another property. Buyers typically offer more than asking price and compete with several other offers.
The higher prices and limited housing inventory are putting a drag on existing home sales. In the second quarter, there were 8,201 single-family homes sold across the Wasatch Front, down 7 percent from 8,810 sales a year earlier. It was the first decline in sales for a second quarter in four years. In Salt Lake County, home sales were down 5 percent. Utah County saw a 6 percent drop. Davis and Weber counties each saw declines of 11 percent. The biggest drop was in Tooele County were sales fell 15 percent year-over-year.
While overall home sales were down, many areas saw double-digit increases. Taylorsville (84129) saw sales rise 38 percent. Provo (84604) sales were up 25 percent. In Holladay, sales climbed 22 percent. Nearly half (46 percent) of all single-family homes sold along the Wasatch Front were in Salt Lake County. Utah County captured 22 percent of all single-family home sales.
Condominium sales were up in all counties on the Wasatch Front, except Salt Lake County were they fell 7 percent. The median priced condo in Salt Lake increased to $224,000, up 11 percent year-over-year.
The average cumulative days a single-family home was on the market in the second quarter along the Wasatch Front fell to 9 days, down from 10 days in the second quarter of 2016.
©August 2017. Troy Peterson, 2017 President, Salt Lake Board of Realtors®
Salt Lake Board of Realtors® July, 2017.
Closed home sales in Salt Lake County rose 1 percent in March year-over-year to 1,471 homes sold. The median sales price increased to $283,000 (all housing types), up 11 percent compared to March 2016. The inventory of homes for sale in the county fell to 2,401 in March, down 28 percent compared to March 2017. Despite the small uptick in sales, a limited supply of housing inventory and higher home prices pushed overall home sales down 5 percent year-over-year in the first three months of 2017.
Salt Lake Board of Realtors® March 8, 2017.
As tight inventories left home buyers facing fewer choices, home sales across the Wasatch Front fell in the first three months of 2017 compared to the same period a year earlier. In the first quarter, sales of single-family homes along the Wasatch Front dropped 5 percent compared to the first quarter of 2016.
New listings in the first quarter are down 6 percent from a year ago. That represents more than 500 fewer homes for sale along the Wasatch Front this year compared to last year. This is one of the strongest seller’s markets ever. Competition is fierce for homes priced under $500,000. Many sellers are making the sale of their home contingent on them finding another property.
Utah’s hot economy, strong net migration, and new household formations are making it difficult for first-time buyers to find homes. Competition even exists for higher-priced homes.
While sales of single-family homes are showing declines, condominium sales are on the rise. In Salt Lake County condo sales climbed 6 percent in the first quarter year-over-year. Typically, condos are less expensive than single-family homes, driving many first-time buyers to consider them.
The median price of a single-family home on the Wasatch Front increased to $280,000, up from $255,000 a year ago. Salt Lake County had the highest single-family home price of the five counties along the Wasatch Front at a median of $300,000 in the first quarter, up 10 percent from a year ago. Utah County home prices were the second highest at a median of $287,000, an 8 percent year-over-year rise. Homes in Weber County were the most affordable along the Wasatch Front at a median price of $205,000.
The average cumulative days a single-family home was on the market in the first quarter in Salt Lake County fell to 48 days, down from 59 days in the first quarter of 2016.
Troy Peterson. 2017 President, Salt Lake Board of Realtors®
Copyright April 26, 2017
Home sales across the Wasatch Front increased 9 percent in the final three months of 2016 compared to the same period a year earlier, according to the Salt Lake Board of Realtors®. The median price of a single-family home settled at $270,000, up 6 percent compared to the fourth quarter of 2015.
Salt Lake County accounted for 44 percent of all single-family home sales in the fourth quarter. Utah County was the second most active, capturing 22 percent of all single-family sales across the five counties making up the Wasatch Front.
The most popular areas in terms of home sales occurred in ZIP Codes with more affordable home prices. Clearfield, Tooele, Farr West, Taylorsville, and Lehi were the top five hottest selling areas. These five cities accounted for nearly 20 percent of all existing Wasatch Front home sales in the fourth quarter.
The price of a single-family home across the Wasatch Front increased to $270,000, up 6 percent from $255,000 a year ago. Salt Lake County had the highest home prices at a median of $290,000. Utah County home prices were the second most expensive at a median price of $275,000.
By ZIP Code, Alpine had the highest median home price on the Wasatch Front at $607,500. The Avenues in Salt Lake City came in No. 2 at a median price of $525,000. Emigration Canyon was in third place at $476,000. Holladay and Eden rounded out the top five most expensive ZIP Codes at median values of $473,237 and $472,450 respectively.
For the year, sales of single-family homes in Salt Lake County increased 1.3 percent to 13,600 sales, the highest level of existing single-family homes sales in 10 years and the third highest level in the county’s history (exceeded only by the pre-recession years of 2006 and 2007).
Troy Peterson, President, Salt Lake Board of Realtors®
January 30, 2017
The price of a single-family home in Salt Lake County has now surpassed the inflation-adjusted peak home price, which was reached prior to the Great Recession.
Single-family home prices in the third quarter of 2016 climbed to a median price of $301,000. The previous peak home price was in the third quarter of 2007 when home prices topped $256,000 (or $298,085 in inflation-adjusted dollars).
The higher prices and limited housing inventory have slowed sales. Single-family homes sold in the third quarter fell to 3,694 units sold, a 5 percent decline compared to 3,881 units sold in the third quarter of 2015. The median single-family home price in Salt Lake County increased 7 percent compared to $279,000 last year.
Single-family home sales increased in Davis (up 2 percent), Utah (up 1 percent), and Tooele (up 7 percent) counties. Home sales fell slightly in Weber County.
Condominium sales in the third quarter in Salt Lake County increased to 1,151 units sold, a 7 percent increase compared to 1,044 sales a year ago. The median price of Salt Lake condos increased to $200,000, up 6 percent from $188,500 a year ago. Condo sales also increased in Tooele and Weber counties (up 11 and 10 percent respectively). However, fewer condos were sold in Davis and Utah counties (down 1 and 6 percent respectively).
New listings of homes on the market in Salt Lake County in the third quarter ticked up slightly to 6,235 units, a 1 percent increase compared to 6,166 listings in the third quarter of 2015. There is currently less than a four-month supply of housing inventory in Salt Lake County based on sales over the past year.
The months of supply is the measure of how many months it would take for the present inventory of homes on the market to sell, given the current pace of home sales. A normal housing market is typically characterized by a five- to six-month supply of housing inventory. Levels below five months represent a seller’s market. Home buyers gain the advantage when levels start rising above six months.
The average cumulative days a listing was on the market in the third quarter in Salt Lake County fell to 33 days, down from 48 days in the third quarter of 2015.
Strong Home Sales Across Salt Lake County and Utah
Home sales in Salt Lake County increased 6 percent in August year-over-year. The rebound in August follows a lackluster July in which sales fell 13 percent. Limited inventory and higher home prices have dampened sales in recent months. The median sales price in August (all housing types) increased to $270,000, up 8 percent compared to $249,000 a year earlier. In Davis County, home sales climbed 12 percent in August. The median price increased to $255,000, up 10 percent year-over-year. Statewide, there were 4,961 homes sold in August, up 8 percent compared to closings in August 2015. The median Utah home price in August increased 10 percent to $250,000.
October 2016, Salt Lake Board of REALTORS®
More Housing Needed as Home Sales Slide
Sales of U.S. existing-homes eased up in August for the second consecutive month despite mortgage rates near record lows as higher home prices and not enough inventory for sale kept some would-be buyers at bay, according to the National Association of Realtors®. Only the Northeast region saw a monthly increase in closings in August, where inventory is currently more adequate. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 0.9 percent to a seasonally adjusted annual rate of 5.33 million in August from a downwardly revised 5.38 million in July. After last month's decline, sales are at their second-lowest pace of 2016, but are still slightly higher (0.8 percent) than a year ago (5.29 million). Lawrence Yun, NAR chief economist, says recent job growth is not yielding higher home sales. "Healthy labor markets in most the country should be creating a sustained demand for home purchases," he said. "However, there's no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold."
September 2016, Salt Lake Board of REALTORS®
Salt Lake Ranks Among the Top 500 Most
Expensive U.S. Housing Markets
September 2016, Salt Lake Board of REALTORS®
Single-Family Sales Fall; Condo Sales Surge
SANDY (July 29, 2016) – The Salt Lake Board of Realtors® today reported a drop in the number of single-family homes sold in Salt Lake County in the second quarter of 2016, while sales of condominiums showed a double-digit percent increase.
Sales of single-family homes in the most recent quarter fell to 3,863 units, a 3 percent decline compared to 3,991 units sold in the second quarter of 2015. The median single-family home price in Salt Lake County climbed to $296,000, up 8 percent compared to $275,000 last year.
“Limited housing inventory continues to restrict home sales,” said Cheryl Acker, president of the Salt Lake Board of Realtors® and a Realtor® with South Jordan-based Utah Key Real Estate. “The higher price points of single-family homes have led many first-time buyers to purchase lower priced townhomes and condominiums.”
Condominium sales in the second quarter increased to 1,208 units sold, a 16 percent increase compared to 1,044 sales a year ago. The median price of Salt Lake condos surpassed the $200,000 mark in the second quarter, rising to $203,450 from $188,750 a year ago.
New listings of homes on the market in Salt Lake County ticked up slightly to 6,819 units, a 0.3 percent increase compared to 6,797 listings in the second quarter of 2015. Based on sales trends of single-family homes over the past year in Salt Lake County there is currently a four-month supply of housing inventory.
The months of supply is the measure of how many months it would take for the present inventory of homes on the market to sell, given the current pace of home sales. A normal housing market is typically characterized by a five- to six-month supply of housing inventory. Levels below five months represent a seller’s market. Home buyers gain the advantage when levels start rising above six months.
Single-family home sales increased in Davis (up 6 percent), Weber (up 6 percent) and Tooele (up 19 percent) counties. Sales in Utah County fell 0.3 percent.
Overall, sales of single-family homes across the Wasatch Front increased 1 percent year-over-year – 8,686 sales in this year’s second quarter compared to 8,562 sales last year. The median single-family home price for the Wasatch Front increased 9 percent to $274,900 compared to a median price of $253,000 in last year’s second quarter.
The top five priciest ZIP code areas across the Wasatch Front in the second quarter for single-family homes were: the Avenues (84103) $489,000; Emigration Canyon (84108) $472,750; Alpine (84004) $469,500; Draper (84020) $449,457; and Holladay (84117) $426,000. Four of the five most expensive ZIP codes in the second quarter saw a drop in home sales. Draper home sales were flat.
The average cumulative days a listing was on the market in the second quarter in Salt Lake County fell to 37 days, down from 59 days in the second quarter of 2015.
Home sales in Salt Lake County in April showed a modest increase, rising 1 percent year-over-year. There were 1,523 homes and condominiums sold during the month. That’s more homes than were sold in April of 2005, the peak year of housing sales prior to the Great Recession. Year-to-date, (January through April) home sales are up 0.5 percent compared to the same four-month period in 2015. In Davis County, sales of homes in April climbed 8.2 percent to 489 sales. Year-to-date, Davis County homes sales are up 1.2 percent.
The biggest barrier facing home buyers today is a limited supply of housing inventory. The “months of supply” is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. A normal housing market is typically characterized by a five- to six-month supply of housing inventory. Levels below five months represent a seller’s market. Home buyers gain the advantage when levels start rising above six months.
In April there was a 2.0-month supply of inventory in Salt Lake County, down 39.4 percent compared to a 3.3-month supply of inventory last year. Just 2,917 homes were listed for sale in Salt Lake County in April, down 34.8 percent compared to 4,473 homes for sale the prior year. Like Salt Lake County, Davis County is experiencing a shortage of housing inventory. In April, the supply of housing inventory fell to 1.8 months, down from 3.2 months a year ago.
On the bright side, pending home sales (or homes under contract) increased 10 percent in April year-over-year. And, new listings showed a 1.4 percent rise in April.
Lawrence Yun, chief economist for the National Association of Realtors®, noted in a statement that housing gains in the South and West propelled pending sales in April to their highest level since February 2006. "The ability to sign a contract on a home is slightly exceeding expectations this spring even with the affordability stresses and inventory squeezes affecting buyers in a number of markets," he said. "The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market."
The median sales price of Salt Lake homes sold in April increased to $257,500 (all housing types), up 5.1 percent compared to a median price of $245,000 in April 2015. In Davis County, the median sales price increased 11.7 percent to $248,400. Homes listed in April sold on average in just 35 days, down from 49 days a year ago. For more housing stats information visit: http://slrealtors.com/home-
2016 President, Salt Lake Board of Realtors®
The Avenues Ranks No. 1 in Highest Wasatch Front Home Prices
Salt Lake Quarterly Housing Report
Home sales in Salt Lake County in the fourth quarter showed a modest increase, but slowed considerably compared to previous quarters. There were 2,899 single-family homes sold in the final three months of 2015, a less than 2 percent increase compared to 2,857 sales a year earlier. In each of the first three quarters of 2015, home sales in Salt Lake County posted double-digit gains year-over-year (15 to 16 percent each quarter). Home sales also slowed in Davis County in the final quarter of 2015, up just 0.51 percent year-over-year. Utah County home sales fell nearly 3 percent.
According to the National Association of Realtors®, the Wasatch Front sales declines were not unique, with sales across much of the country sagging. This was a result of delayed closings resulting from the rollout of the RESPA-TILA Know Before You Owe initiative, which took effect on Oct. 3. The rule was implemented to offer greater transparency into the mortgage and closing process.
Unlike other Wasatch Front counties, Weber and Tooele counties in the fourth quarter saw home sales climb at 13 percent and 23 percent respectively.
In the final quarter of 2015, the median single-family home price in Salt Lake County reached $267,500, a nearly 5 percent rise compared to a median price of $255,000 a year earlier. The median home price in Davis County was $245,000, a 9 percent climb compared to $224,000 last year.
The bright spot in the fourth quarter was condominium sales. As first-time buyers struggled to qualify for escalating home values, many turned to townhomes and condominiums. In Salt Lake County condo sales increased to 822 units sold in the fourth quarter, a 16 percent rise compared to 706 sales in the fourth quarter of 2014. Utah County saw its condo sales rise 15 percent. The median price of condos sold in Salt Lake was $194,750, up nearly 13 percent from a year ago.
The average cumulative days a listing was on the market in the fourth quarter in Salt Lake County was 54 days, down from 75 days in the fourth quarter of 2014. Thank you and let us know how we can serve you.
SALT LAKE BOARD OF REALTORS®
Salt Lake Pending Home Sales Climb
Home sales in Salt Lake County in February were down year-over-year (a drop of 7 percent), but pending sales showed a 6 percent rise for the same month, suggesting the spring selling season is heating up. The number of new listings fell 7 percent in February, making an already robust seller’s market even stronger. The days on the market (until sale) fell to 28 days, down from 55 days a year earlier. The median home price (all housing types) for all units sold in February increased 8 percent to $248,000 year-over-year. Housing inventory levels in Salt Lake County when measuring sales trends over the past year are currently at 3.65 months. More housing inventory is desperately needed.
April, 2016. SALT LAKE BOARD OF REALTORS®
After being overthrown last year by Houston, Austin regains the number one spot as the fastest-growing city in the U.S., according to a new analysis by Forbes. Adding to its allure, Austin boasts booming technology, pharmaceutical and biotech industries as well as low-cost of living.
Forbes.com compiled its annual list of America’s Fastest-Growing Cities by ranking the 100 largest metro areas and their surrounding suburbs. For its rankings, they factor in population growth for 2015 and 2016, year-over-year job growth for 2015, the metro’s economic growth rate, unemployment, and median annual pay for college-educated workers in the area.
The following cities topped Forbes’ list as the fastest-growing populations and economies (included below with each city’s population growth for 2015 and projected growth rate for 2016):
1. Austin, Texas
2. San Francisco, Calif.
3. Dallas, Texas
4. Seattle, Wash.
5. Salt Lake City, Utah
6. Ogden, Utah
7. Orlando, Fla.
8. San Jose, Calif.
9. Raleigh, N.C.
10. Cape Coral, Fla.