Home Prices Hit Record High
Home Prices at All-Time High
SANDY (Aug. 10, 2017) – Wasatch Front home prices in this year’s second quarter climbed to their highest point ever, according to the Salt Lake Board of Realtors®. 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%
Troy Peterson, president of the Salt Lake Board of Realtors®, said this is the strongest seller’s market he has seen. “Competition is fierce for homes priced under a half-million dollars,” Peterson said. “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 where they fell 7 percent. The median priced condo in Salt Lake increased to $224,000, up 11 percent year-over-year.
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, according to Peterson, who added he’s never seen anything like the current market in his 22 years of selling real estate. A recent $950,000 listing received three offers, each offer coming in at $1 million.
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.
About the Salt Lake Board of REALTORS®
The Salt Lake Board of Realtors® is the Wasatch Front’s voice of real estate and the No. 1 source for housing market information. Established in 1917, the Salt Lake Board of Realtors® is a leader in protecting private property rights. As Utah’s largest real estate trade association, the Salt Lake Board of Realtors® assists its members to serve the public through continuing education, advocacy and a professional code of ethics.