SANDY, Utah — According to the Utah Association of Realtors, October home sales in Utah fell nearly 41% year over year, while the average selling price rose 7% over the same period.
“Stubbornly high inflation and rising borrowing costs have eroded buyers’ purchasing power and caused the market to cool off rapidly this year,” the association’s monthly report said.
The median home selling price in Utah was $492,000 in October, compared to $460,000 a year ago. However, prices have fallen since peaking at $539,000 in May this year.
“The US housing market is in the midst of a major upheaval, and affordability continues to be a barrier for buyers and sellers,” the report said. “Mortgage rates have doubled since March and home prices remain high due to a limited supply of homes, although price gains are slowing at an accelerating pace.”
Broker Stephanie Grable of The Stern Team at Keller Williams said the market has shifted to a neutral market transitioning to a buyers market.
“What we did during the pandemic was unsustainable. That was an anomaly. It wasn’t normal,” she said.
Grable said buyers and sellers are once again negotiating prices, concessions and repairs.
“Before the pandemic, sellers and buyers actually negotiated with each other,” she explained. “We forgot what that was like for about two years.”
According to the October Real Estate Report, the number of homes for sale in Utah has increased nearly 94% to 12,237 active listings since this time last year.
Grable anticipates that more buyers will return as interest rates fall. Until then, she reminds buyers that with twice the number of homes on the market, buyers currently have more options and less competition.
“There are no bidding wars at the moment,” she said. “So you have the option to get the house you want and refinance that rate later.”
Homes stay on the market for an average of 46 days before an offer is accepted, the report said. That’s twice as many market days as last October.
“Many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and making concessions to attract a larger number of buyers,” the report said.
Homeowners who sold their home in October received 94.9% of their original listing price (excluding concessions). A year ago, sellers received 100.3% of their original listing price.