Salt Lake Home Prices at Record High
The price of a single-family home in Salt Lake County 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 dollars).
The higher prices and limited housing inventory have slowed sales. Single-family homes sold in the third quarter fell to 3,694 units sold, 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.
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.
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. There is currently less than a four-month supply of housing inventory in Salt Lake County based on sales over the past year.
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.
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.
2016 President of the Salt Lake Board of Realtors®