Home prices in Salt Lake County have reached an all-time high, according to data released last week by the Salt Lake Board of Realtors. The price of a single-family home has now surpassed the inflation-adjusted peak home price, which was reached prior to the Great Recession.
Home prices in Salt Lake County have reached an all-time high, according to data released last week by the Salt Lake Board of Realtors. The price of a single-family home has now surpassed the inflation-adjusted peak home price, which was reached prior to the Great Recession.
Single-family home prices in the third quarter of 2016 climbed to a median price of $301,000. The previous peak home price was in the third quarter of 2007 when home prices topped $256,000 (or $298,085 in inflation-adjusted, 2016 dollars).
The higher prices and limited housing inventory have dampened sales. Single-family homes sold in the third quarter fell to 3,694 units, a 5 percent decline compared to 3,881 units sold in the third quarter of 2015. The median single-family home price in Salt Lake County increased 7 percent compared to $279,000 last year.
“Limited housing inventory and high demand continues to push home prices higher,” said Cheryl Acker, president of the Salt Lake Board of Realtors, who works at South Jordan-based Utah Key Real Estate. “More housing inventory is needed to help balance current demands.”
Condominium sales in the third quarter in Salt Lake County increased to 1,151 units sold, a 7 percent increase compared to 1,044 sales a year ago. The median price of Salt Lake condos increased to $200,000, up 6 percent from $188,500 a year ago. Condo sales also increased in Tooele and Weber counties (up 11 and 10 percent, respectively). However, fewer condos were sold in Davis and Utah counties (down 1 and 6 percent, respectively).
New listings of homes on the market in Salt Lake County in the third quarter ticked up slightly to 6,235 units, a 1 percent increase compared to 6,166 listings in the third quarter of 2015. Based on sales trends of single-family homes over the past year in Salt Lake County, there is currently less than a four-month supply of housing inventory. The months of supply is the measure of how many months it would take for the present inventory of homes on the market to sell, given the current pace of home sales. A normal housing market is typically characterized by a five- to six-month supply of housing inventory. Levels below five months represent a seller’s market. Home buyers gain the advantage when levels start rising above six months.
Single-family home sales increased in Davis (up 2 percent), Utah (up 1 percent) and Tooele (up 7 percent) counties. Home sales fell slightly in Weber County.
The average cumulative days a listing was on the market in the third quarter in Salt Lake County fell to 33 days, down from 48 days in the third quarter of 2015.