Salt Lake Home Prices at Record High
SANDY (Oct. 31, 2016) – 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, according to the Salt Lake Board of Realtors®.
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 dampened 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.
“Limited housing inventory and high demand continues to push home prices higher,” said Cheryl Acker, president of the Salt Lake Board of Realtors® and a Realtor® with South Jordan-based Utah Key Real Estate. “More housing inventory is needed to help balance current demands.”
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. Based on sales trends of single-family homes over the past year in Salt Lake County there is currently less than 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 2 percent), Utah (up 1 percent), and Tooele (up 7 percent) counties. Home sales fell slightly in Weber County.
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.
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 better serve the public through continuing education, advocacy and a professional code of ethics.