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1st Quarter 2023 Results for Salt Lake County

The Greatest Snow Earth is more than just a slogan
Utah’s winter came in like a Lion and is going out like a Shogun
All-time records for snowfall on the Wasatch are being broken
If this Winter was a championship wrestler, it would be Hulk Hogan
Massive pumped up Atmospheric Rivers flowing from the Pacific Ocean
Powder days and face shots have been plentiful when the canyon is open
This winter has been amazing for those who love playing in the snow
Hope we warm up gradually, so we can handle the spring thaw flow

It was snowing when I wrote this, so it was easy to get in the mood to write about this winter.  But poetry is a hobby and real estate is my business, so now that we’ve had a little fun, let’s get into the 1st quarter 2023 results for residential real estate in Salt Lake County.

1st Quarter 2023 Results for Salt Lake County Single Family Homes:

The median price of a single-family home in Salt Lake County decreased, yes decreased, from $603,000 in the 1st quarter of 2022, to $560,000 in the 1st quarter of 2023, down 7.1%.

On the graph below you’ll see that the number of homes listed for sale (green line) and sold (black line), continue to be at record lows due to interest rate shock.  There are some multiple offer situations happening though, and inventory of homes for sale is about half of what it was last fall at its peak.

The number of homes for sale has declined enough to be about equal to the number of homes under contract, so we’re down to about one month of inventory of homes for sale in Salt Lake County.

In some of the more affordable areas like Rose Park, Poplar Grove, Glendale, West Valley City and Magna, where homes can be had for under $450,000, inventory is currently at less than a week.

So it may still feel like winter, but the spring real estate market is already heating up, and there’s not that many homes for sale.

1st Quarter 2023 Results for Salt Lake County Condos & Townhomes

The median price of a condo/townhouse in Salt Lake County decreased from $435,000 in the 1st quarter of 2022, to $415,000 in the 1st quarter of 2023, a 4.6% decrease.

However, the median price is up 2.5% from $405,000 in the fourth quarter of 2022 to $415,000 in the 1st quarter of 2023, so we’re already seeing a small rebound in prices for condos.

The inventory situation with condos and townhomes is pretty much the same as what’s happening with our local single family home market, with record low inventory of condos for sale and selling due to interest rate shock, and about three to four weeks of inventory for sale, if you compare the number of condos for sale to condos under contract.

Interest rates are still in the range of 6% to 6.5% for a 30-year Conventional fixed rate mortgage for buyers with good credit.  The Federal Reserve is still increasing the Benchmark interest rate, but at a much slower pace than they were, and inflation has receded for eight consecutive months, from a high of 9.1% in June 2022 to 6.0% in February 2023.  March inflation numbers will be available next Wednesday April 12th, and the forecast is for inflation to drop to around 5.5%.

It will be interesting to see where inventory of homes for sale and prices go in the second quarter of 2023, and what happens with inflation and interest rates.

I’ve been thinking for some time that the second half of 2023 will be a soft market, with increasing inventory like the second half of 2022, but now I’m not convinced that that will be the case.  It could go either way.

If you have any questions about buying or selling residential real estate in or around Salt Lake, wonder what your home is worth, or know someone that needs help buying or selling, please contact me.  Over 90% of the people I help are repeat customers and referrals from the people I know.  I love what I do, and I can’t do it without you!

Thank you!

Kev

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