Rising home mortgage interest rates have apparently put the brakes on home sales in Utah. Sales of all housing types fell to 1,344 transactions in June in Salt Lake County, the lowest number for a June month in a decade and 27 percent lower than sales in June 2021, according to numbers reported by the Salt Lake Board of Realtors.
June was the 13th consecutive month of falling year-over-year sales. Over the past 10 years, there have been an average of 1,741 closings in June, the board said.
“Unfortunately, the Federal Reserve’s effort to curb inflation is having a negative impact on home buyers, who are backing out of deals or don’t qualify for financing because of higher interest rates,” said Steve Perry, president of the Salt Lake Board of Realtors. “In Salt Lake County, there were 400 fewer home sales this June than in a typical June month. Nationally, 60,000 housing deals were canceled by buyers because of higher borrowing costs, according to Bloomberg News.”
Home sales were also down in counties across the Wasatch Front. Utah County was down 19 percent, Davis County saw its sales fall 9 percent. Tooele County was down 13 percent and Weber County was down 15 percent.
Total dollar volume of homes sold in June in Salt Lake County fell to $852.6 million, down 15 percent from $1 billion in June 2021. Under-contract listings decreased 21 percent to 1,952 from a year earlier.
The median sales price for all housing types sold in June in Salt Lake County increased to $545,000, up 16 percent from a median price of $470,000 in June 2021. The median single-family home price increased to $628,000, up 14 percent from $550,000 a year ago. New listings in Salt Lake County increased to 2,149, up 9 percent from 1,965 in June 2021, according to the board report.