Home values refuse to decline as homeowners hang on to houses and buyers persist.

We’re halfway through 2023 and what a ride it has been! Six months ago we hit our winter low median home sales price of about $535,000. But we’ve steadily climbed back up since, reaching a solid $600,000 median home sales price for both May and June 2023. We also hovered around $600,000 last summer before the rise in rates really took hold of our market.

How did our prices appreciate so much in the face of the highest mortgage-rate environment in more than a decade? Perhaps you’ve heard – there is still a housing shortage and Utah’s economy is robust.

According to the Kem C. Gardner Policy Institute’s latest monthly consumer sentiment report, “[t]he Utah economy continues to demonstrate resiliency with low unemployment and strong job growth.” In fact, Utah’s consumer sentiment in June reached its highest level in more than a year.

After almost a year of different opinions, it seems most national analysts are now quietly revising their housing forecasts for 2023 and no longer expect home prices to show significant declines this year. A lot of us in the trenches who talk to buyers and sellers everyday are not surprised at all that the market continues to move forward and prices have remained steady.

Current inventory levels have essentially put a stop to further price declines. So many sellers have been deterred from listing their homes and entering the market due to interest rates, that it is entirely possible we’ve found the current floor for pricing. For example, take a look at how many times we’ve hovered around a $600,000 median home sales price the last two years. It feels like a natural, organic, sustainable price level – one that isn’t quickly altered by volatile rates or national news.

Reduced supply has softened the effects of reduced demand – that’s essentially what’s happened so far in 2023. Buyers persist despite affordability challenges and lean inventory. Because we buy homes when we have a new job and need a place to live. We buy homes to belong to a community we love with neighbors we care about. And we buy homes so that we have a safe place to be when the news seems a bit too chaotic and uncertain.

Knowing all this, is it a good time to make a move? That is a very personal decision and there is no one-size-fits all answer. But we can tell you there are great opportunities out there so if you are considering a move, pick up the phone! Let’s talk and take a look at your options.

As always, reach out anytime with any real estate questions you may have. We are happy to help you and anyone you send our way!

Make sure and take a look at the June 2023 Market Trends Report for Salt Lake and Summit County to really dig into the numbers!