Soaring mortgage interest rates slow home sales in Utah
Sandy — Soaring mortgage interest rates are slowing home sales in Utah and across the country. The average 30-year, fixed-rate mortgage increased to 6.3 percent today, according to Freddie Mac.
Higher rates are disqualifying home buyers from financing. Home sales of all housing types in August fell to 1,204, down 27 percent from sales in August 2021.
“The Federal Reserve’s aggressive rate hikes seem to be having little effect on inflation, but a chilling effect on the housing market,” says Steve Perry, president of the Salt Lake Board of Realtors®. “We are selling about 400 fewer homes a month than the 10-year average.”
Active listings on UtahRealEstate.com topped 10,000 homes, a 150 percent increase over the 4,000 active listings at this time last year. The number of homes for sale has reached a balanced level.
“The bidding wars are over,” Perry adds. “Offers above asking price and waiving of appraisals have ended. Home buyers have more choices and options when purchasing a house.”
The single-family median home price in August was $601,000, up 10 percent from $545,000 in August 2021. Single-family home prices in Salt Lake County peaked at $650,000 in May, but are down 8 percent as of August.
Single-family home prices have increased 63 percent since the start of the pandemic, from March 2020 to May 2022, when prices climbed from $400,000 to more than $650,000 in Salt Lake County.
In August, the median number of days a home was on the market was 22, more than three times longer than a year ago.
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.
UtahRealEstate.com is where real estate listings originate, and it is the official property information platform for real estate professionals in the state of Utah. We proudly serve approximately 96% of all Realtors® in the state of Utah, according to T3 Sixty 2021 Real Estate Almanac. UtahRealEstate.com operates one of the largest Multiple Listing Services (MLS) in the United States.