Higher mortgage interest rates slow sales, yet some areas see price increases
Home sales across Salt Lake County in January fell as mortgage interest rates remained near 15-year highs.
In Salt Lake County, 590 homes sold (all housing types) in January, down 36% compared to 927 sales in January 2022. January represented the fewest number of homes sold in a single month since January 2011, when 571 homes were sold. Multi-family homes saw the biggest percent decrease for the month at a decline of 46%. Single-family homes were down 33%.
“Mortgage interest rates continue to hinder sales,” said Rob Ockey, president of the Salt Lake Board of Realtors®. “However, we expect the 30-year mortgage rate will trend lower in the coming months, as the spread between the 30-year mortgage and 10-year Treasury returns to its historical average (around 170 basis points). If that happens, we could see rates around 5.5%.”
The 30-year fixed-rate mortgage increased to 6.5% as of Feb. 23, up from 3.9% a year ago, according to Freddie Mac.
The median single-family home price in Salt Lake County settled at $533,500 in January, 9% lower than the median price in January 2022. Despite the overall county median price decline, some areas saw prices increase. In Salt Lake County’s Canyon Rim area (84109), the single-family median home price increased to $1.1 million in January, up 36% from $810,000 in January 2022. In Holladay (84117), home prices increased to $860,000, up 4% from $824,000 a year earlier. In West Valley City (84119), prices increased to $435,000, up 0.3% from $433,900.
From March 2020 through May 2022, the pandemic spurred a home-buying rush. This caused the median single-family home price to jump nearly 60% in Salt Lake County. The median single-family home price peaked in May 2022 at $650,000. Since May 2022, single-family home prices have fallen 22%.
“A majority of homeowners are sitting on plenty of equity,” Ockey added. “There is still strong demand by people to buy a home. The limiting factor is higher interest rates.”
In January, the median time a home was on the market was 51 days, up from 11 days a year earlier.
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. The Salt Lake Board of Realtors® is the largest shareholder of UtahRealEstate.com, one of the leading Multiple Listing Services (MLS) in the United States. Since 1917, the Salt Lake Board of Realtors® has been a leader in promoting homeownership and protecting private property rights. The Salt Lake Board of Realtors® empowers its members to better serve the public by providing continuing education, advocacy, and a professional code of ethics.
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