Despite facing challenges from rising mortgage interest rates, home prices in Salt Lake County saw a modest increase during the third quarter, according to UtahRealEstate.com.
The report found the median price of a single-family home in Salt Lake County rose to $594,125 in the July-August-September period, marking a 1 percent uptick from $589,900 during the same quarter in 2022. Among the counties along the Wasatch Front, only Weber County experienced a similar upward trend, with prices climbing by 2 percent to reach $445,000, up from $435,000 year over year. Davis County, on the other hand, saw a 1 percent decline in home prices, while Utah County experienced a 4 percent decrease and Tooele County saw a 5 percent drop.
The increase in mortgage rates has been notable in 2023, surging by two full percentage points. It peaked at 7.79 percent in the final week of October, according to Sam Khater, chief economist at Freddie Mac. However, in November, rates showed a slight decrease, averaging at 7.29 percent.
Dejan Eskic, chief economist at the Salt Lake Board of Realtors, noted the persistent trend among prospective homebuyers who are eagerly awaiting a reduction in interest rates and an expansion of housing inventory.
“This is why we have seen home sales decline across the Wasatch Front over the past 18 months,” Eskic said.
In Salt Lake County, the sales of single-family homes dipped to 2,103 units, marking an 11 percent decline compared to the 2,362 units sold in the third quarter of 2022. Weber County also experienced a 3 percent decrease in sales, while Tooele County saw a 5 percent decline, Davis County experienced a 16 percent drop, and Utah County had a substantial 25 percent decrease in sales.
The median price of condominium sales in Salt Lake County experienced a marginal decrease of 1 percent, settling at $410,000, compared to $412,990 from the previous year. Condominium sales also decreased by 4 percent during the quarter.
In total, there were 5,156 single-family homes sold along the Wasatch Front during the third quarter, reflecting a 16 percent decrease from the 6,114 sales in the same quarter of 2022. The median price of single-family homes sold stood at $563,000, marking a 2 percent decrease from the $575,000 recorded in the third quarter of the previous year.