Rising Demand Meets Low Supply | Utah Market Trends

05-15-2023 | Real Estate

Real Estate Market Update

Salt Lake City | April 2023

The sun is out and it seems we’re finally headed into some real summertime weather! Ready for an update on Salt Lake’s housing market? Let’s get to it!

Open houses are busy, multiple offers on well-presented and accurately priced homes are common, and cash buyers still make up a strong segment of our market.  

We’ve all had enough time to adjust to the reality of current interest rates, and now that rates are trending sideways, buyers and sellers who were once on the fence seem to be ready to make their move in 2023.

April 2023, Detached Homes | Salt Lake County
-$575,000 Median Sales Price, 0% change from March
-$663,000 Median List Price, up 2% from March
-619 Units Sold, down -19% from March
-879 New Listings, up 6% from March
-1,599 Number of Detached Homes for Sale, 0% change from March
-42 Average Days on Market, down -25% from March

Sellers are in a strong position. We are right in the middle of our peak selling season and it is clear that the housing market has firmly tilted back in favor of sellers. There just aren’t enough homes for sale to meet demand, and this scarcity is driving prices up again, despite current interest rates.

The value of a typical home in Salt Lake increased 2.74% in the last three months. Although prices are down from last year’s peak, they still stand 29% higher than in 2020. Homeowners have an incredible amount of equity to leverage.

The drought in new listings is deepening. The flow of new listings to the market did not increase in April as it usually does, defying the decades-old trend of new listing activity rising in the spring. Currently we have about -34% fewer listings than the spring of both 2022 and 2021. And notably, listings were in high demand and short supply during that time too.

Where are the sellers? Partially to blame is the “golden handcuffs” effect, a fun way of saying that homeowners who are locked into low interest rates are reluctant to sell and buy again at significantly higher rates. We also see that some sellers are holding back because they think the market is worse than it actually is right now, which is understandable given the current news cycle, but buyer demand is actually really strong right now. Finally, Utah in particular has been so chronically under-housed for so long, that we just can’t catch up. Utah’s economic growth continues to fuel demand and put upwards pressure on our scarce supply of homes.

Lower inventory is holding back sales. With fewer homes on the market to buy, sales are naturally down too. It is important to note that our lower sales aren’t due to a lack of demand. If listing activity increases, so will our sales numbers.

The bottom line. The market is busy. Buyers are ready. Sellers who are also ready have a lot of equity to leverage, and can sell their home at a premium if it is presented and priced well.

If you’re curious about how much equity you have in your home, reach out! We are happy and grateful to help you and anyone you send our way!

Be sure to look through the entire April 2023 Market Trends Report for both Salt Lake and Summit County to see all the details. And if you missed last month’s market insight, you can catch it here!

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