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SANDY. Utah home sales in October fell nearly 41% year-over-year, according to the Utah Association of Realtors, while the median sale price rose 7% over the same period.
“Stubbornly high inflation and rising borrowing costs have eroded buying power and led to a rapid market cooling this year,” the association said in a monthly report.
The median home sale price in Utah was $492,000 in October, up from $460,000 a year ago. However, prices have fallen from a peak of $539,000 in May of this year.
“The housing market in the US is undergoing major changes, and housing affordability continues to be a barrier to buyers and sellers,” the report said. “Mortgage rates have doubled since March, and home prices remain high due to limited supply of homes, although price growth is slowing at an increasingly rapid pace.”
Realtor Stephanie Grable of The Stern Team at Keller Williams said the market has moved to a neutral market that is merging with the buyers’ market.
“What we did during the pandemic was unsustainable. This was an anomaly. It was not normal,” she said.
Grable said buyers and sellers are once again haggling over prices, concessions and repairs.
“Before the pandemic, sellers and buyers were actually negotiating with each other,” she explained. “We forgot what it was like for about two years.”
According to the October Real Estate Report, the number of homes available for sale in Utah jumped nearly 94% year-over-year to 12,237 active listings.
Grable expects more buyers to return if interest rates fall. Until then, she reminds that with the doubling of the number of homes on the market, buyers now have more options and less competition.
“There are no price wars now,” she said. “So you have the option to get the house you want and refinance that rate later.”
The report states that homes are on the market for an average of 46 days until an offer is accepted. This is twice as much as in October last year.
“Many homeowners are waiting for market conditions to improve in order to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract more buyers,” the report says.
Homeowners who sold their homes in October received 94.9% of their original list price before rebates. A year ago, sellers received 100.3% of their original list price.