Utah home listings surge, signaling shift to buyer’s market

The number of active home-for-sale listings in Utah jumped 33 percent in the past year and a full 66 percent since June 30, 2023, according to the Salt Lake Board of Realtors, as reported on UtahRealEstate.com. 

The number of homes for sale in the state was 13,444 as of June 30, up from 10,138 at this time last year and up from 6,192 in June 2023. Listings are also up 117 percent from 6,192 homes on the market as of June 30, 2020, during the COVID-19 pandemic.

“The reason active listings are rising is primarily due to higher mortgage interest rates, which have reduced affordability for many buyers,” said Claire Larson, president of the Salt Lake Board of Realtors. “An increase of over 5,000 listings from just two years ago means buyers now have more options and greater negotiating power on price and terms.”

Additional contributors to the growing inventory include increased new home construction and a selloff of investment properties by landlords facing cooling home appreciation and rising carrying costs, Larson said.

“Many homes are simply staying on the market longer due to more cautious buyers and affordability challenges,” Larson added. “Days-on-market has increased, leading to an accumulation of listings.”

Based on the home sales pace over the past six months, Utah currently has approximately a six-month supply of housing inventory — meaning that if no new homes were listed, all existing homes would sell within six months.

In real estate terms, a balanced market occurs when supply and demand are roughly equal — typically defined as five to six months of inventory. A buyer’s market — where inventory exceeds demand — is considered to exist when supply exceeds six months. Conversely, a seller’s market, driven by high demand and limited supply, occurs when inventory drops below five months.

“The Utah housing market is moving away from a seller-dominated environment,” said Dejan Eskic, chief economist at the Salt Lake Board of Realtors. “The substantial rise in active listings reflects a combination of increased seller activity and slowing buyer demand. While we’re not yet in a full-fledged buyer’s market across the board, the balance of power is clearly beginning to shift — especially in mid-to-high-end segments and less in-demand areas.”

Price reductions are becoming more common, particularly among higher-priced homes and those located in less desirable areas — a reflection of seller expectations still adjusting to current market conditions, according to UtahRealEstate.com.

Founded in 1994, UtahRealEstate.com is the leading provider of real estate technology in Utah and one of the largest multiple listing services in the United States. The company provides one of the top-ranked real estate websites in the country, serving more than 8 million consumers each year. It also provides multiple listing services to approximately 20,000 real estate professionals, accounting for nearly 97 percent of all Realtors in Utah.