Real Estate Market Update

Salt Lake City, May 2023

Summer is officially here and we’re excited to share some great news. Our local real estate market continues its upwards trend! Prices, inventory levels and sales have all continued their steady climb back up from last winter’s low. 

Here’s a look at at May’s numbers from the Salt Lake Market Trends Report.

May 2023, Detached Homes | Salt Lake County 

• $600,000 Median Sales Price, up 3.58% from April 
• $679,570 Median List Price, up 4.55% from April 
• 799 Units Sold, up 25.24% from April 
• 37 Average Days on Market, down -11.9% from April 
• 1,765 Number of Properties for Sale, up 9.09% from April 
• 1,074 New Listings, up 18.81% from April 

 

Listings finally increased. 

If you’re a buyer right now you’ve probably finally noticed an increase in listings to choose from. Inventory levels are still quite a bit lower than previous years, but at least we’re moving in the right direction and we expect the number of listings entered to show an increase in June as well.

 

 

No surprise here, home prices didn’t crash after all.

The median sales price of single family homes in Salt Lake continues to rise month-over-month, averaging a significant 4.46% increase in value from the beginning of the year. This is quite a bit of rebound from last year’s decline. To date, median sales prices are only -7.69% lower than this time last year, which for us here in Utah was the absolute peak of the market. 

 

The massive misfire by forecasting experts seriously rattled consumer confidence, affecting sales.

You couldn’t escape the doomsday reporting this winter when national experts from Moody’s Analytics, Goldman Sachs and so many others predicted a huge crash in values this spring. These forecasts put doubt in the minds of almost everyone about the strength of the residential real estate market. In fact the December Consumer Confidence Survey from Fannie Mae showed 37% of Americans thought prices would fall over the next 12 months – the largest percentage ever recorded. 

The negative forecasts certainly caused people to hesitate about their plans to make a move in 2023. And it had a direct impact on the unusually low inventory levels this spring. But now, six months later, Goldman Sachs and so many others are excited to claim that the “housing market is surprisingly stable” because despite the interest rate and economic headwinds, our real estate market continues to steadily move forward. 

Fewer sales, stubbornly high interest rates, low inventory but also price stability. 

Utah’s real estate market continues to show stability in large part due to our continued economic growth. Although many folks have paused the decision to move this year because of interest rates, many are still moving forward. Deciding when to buy and sell is deeply personal. Many of the factors prompting a change happen irrespective of what interest rates are doing, such as a new job or lifestyle change. We still have a lack of supply in Utah, so even with today’s current market dynamics, prices are stable. 

Bottom Line: The housing market is much stronger than many think. 

If you’re ready to make a move, let’s chat. Call us today at 801.949.9878. You can look through the entire May Market Trends Report for Salt Lake and Summit County here, but if you would like specific information about your neighborhood, reach out to us. We’d love to talk.