Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022.
Laura Seitz, Deseret News
The Salt Lake City metro area is among the top housing markets in the U.S. to see the most dramatic yearly declines in home sales and boosts to for-sale inventory since high interest rates have taken a toll on the national market.
That’s according to RE/MAX’s October National Housing Report, which surveyed 53 metro areas across the nation. Of those 53, the report shows the overall number of home sales across the country are down 13.5% compared to last month — and down 30.7% compared to October of last year.
“October revealed a vastly different housing market from one year ago, with 30.7% fewer closings, 36.8% more homes for sale, and the average home taking nearly a week longer to sell, at 35 days on market,” the report states.
As a result, the national median home sales price declined by 0.3% to $399,000 from September’s $400,000. That’s the third straight month of price declines.
“The historic pace and magnitude of interest rate increases have created a reset and softened the housing landscape as intended,” Nick Bailey, president and CEO of RE/MAX, said in a prepared statement. “In these conditions, homebuyers should be able to consider multiple properties instead of fighting over one. For many buyers, it’s less about the actual interest rate right now, and more about affording the down payment and monthly mortgage payments, and whether the property fits their needs.”
Salt Lake City housing market: Where it stands
Of the 53 markets surveyed by RE/MAX, Salt Lake City stands out for multiple metrics. It had the biggest year-over-year decline in closed transactions. It was also among the top five markets with the biggest increase to days on market and months’ supply of inventory.
Utah — and other states in the West including Idaho — were flooded with homebuyers amid the pandemic housing frenzy. Set free by remote work and lured by quality of life opportunities, including abundant outdoor recreation at relatively more affordable price points compared to big cities, many buyers looked to the West. For fast-growing states like Utah and Idaho, that turned an already boiling housing market red hot.
But now, days of low borrowing rates — some months even under 3% — are over as the Federal Reserve continues to battle record inflation with aggressive rate hikes. The result has been a dramatic housing market correction, with areas in the West slowing faster and more dramatic than other markets across the nation.
The West’s sharp housing market correction: Here’s how fast home prices have fallen in 4 months
Source:: Deseret News – Utah News
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