The housing market in Salt Lake County experienced a slowdown in April, primarily due to the rising mortgage interest rates, according to a report from the Salt Lake Board of Realtors. Home sales declined significantly, with only 908 closings recorded, reflecting a 32.4 percent decrease compared to the 1,343 sales in April 2022.
Rob Ockey, president of the Salt Lake Board of Realtors, emphasized the impact of higher mortgage rates on homebuyers, stating, “Increased mortgage interest rates have resulted in a considerable rise in monthly payments, posing affordability challenges for potential buyers. Additionally, homeowners are reluctant to sell their properties and lose their current low interest rates.”
In April, the median price for all housing types in Salt Lake County dropped to $495,000, marking a 10.8 percent decrease compared to the previous year. The median price for single-family homes was $577,000, down 8.9 percent from $633,000 in April 2022. Similarly, multi-family homes (including condominiums, townhomes and twin homes) settled at $423,750, experiencing a 5.8 percent decline from the previous year.
However, the limited supply of houses is exerting upward pressure on prices in the new year, the report said. The price of a single-family home increased to $577,000 in April, representing an almost 8 percent rise from $535,750 in January. The days on the market for single-family homes decreased from 53 days in January to 19 days in April. On average, all housing types remained on the market for 23 days in April, showing a significant increase compared to the five days in April 2022.