Interest Rates Continue to Lower Sales Prices & Benefit Buyers I January 2024

01-3-2024 | Utah Housing Market Data

Interest Rates Continue to Lower Sales Prices & Benefit Buyers

Happy New Year! 

We hope this finds you in uplifted spirits and a recharged battery after time spent with friends and family for the holidays. ❣️

In December, median sales prices in Salt Lake City County decreased 5% from the last three months’ average (November, October, September). The Federal Reserve’s decision to increase interest rates in late 2022 impacted many people’s purchase potential. Because buyers taking out loans have more limited budgets, sellers have been forced to reduce their sales prices. 

The good news? Because fewer people are choosing to buy now, there’s many more homes to choose from! (And at a lower price for cash buyers!) December 2023’s home inventory was 3.2% higher than December of 2022, and last month’s average days on market (55) increased by 13% compared to the previous three months’ average.

That being said, if buying a new home is on your New Year’s resolutions list, you’re in luck! Here are just a few reasons why:

  • Market momentum is in your favor: While we can’t predict what 2024 holds, the correlation between interest rates and inflation indicates the Federal Reserve will likely continue to lower rates in the next few months. Now is the time to take advantage of a slower market – you can always refinance later! 
  • Better selection of homes: Increased inventory in tandem with lower home prices allows buyers to find the home that perfectly aligns with their evolving needs. If you’ve been dreaming of a specific location, big kitchen, or expansive patio area, it’s the perfect opportunity to find exactly what you want. 
  • More time to perform due diligence: In a more competitive market, those in the market for a home might be forced to pull the trigger before they’re ready. Our current climate allows buyers to meticulously inspect properties without feeling rushed. 
  • Increased negotiation leverage: Since housing supply currently outweighs demand, buyers can ask homeowners to make repairs and other optimizations without fear that they’ll simply sell to another more low-maintenance buyer. 

The bottom line: Those in the market for a new home should capitalize on market conditions and shop and buy before interest rates decrease, home prices skyrocket, and inventory declines. 

If you’re thinking about selling, don’t stress! There are so many reasons to sell, and market conditions shouldn’t be anywhere near the top of the list. Evolving needs should always drive your selling decisions. And with our team’s dedicated marketing and positioning, you can rest assured you’ll get top dollar for your investment. 

Whether you’re thinking about buying or selling, we’re here to help! Shoot us a text at 801.949.9878 or email julia@splanhomes.com, and we’ll set up a time to chat.

2024 will be an incredible year for real estate, and we can’t wait to see what’s to come with you by our side.

Can’t wait,

Julia and Kate


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