It’s been over two weeks since fall officially started
But summer has been persistent and hasn’t departed
No need for the seasons to be so formal
But this unseasonable warmth is definitely not normal
So enjoy it while it last, but hope for rain and cool weather
Because we’re still in a drought and we’re all in this together.
We just finished up the 3rd quarter of 2024, so let’s take a look at the results for the residential real estate market in Salt Lake County.
3rd Quarter Median Price Change in Salt Lake County:
The median price of a single family home in Salt Lake County increased from $605,000 in the 3rd quarter of 2023, to $620,000 in the 3rd quarter of 2024, a modest 2.5% increase.
In the chart below you can see that prices have been pretty stable since the first quarter of 2022, with the median price of a single family home appreciating just 2.8%, from $603,000 in the 1st quarter of 2022 to $620,000 in the 3rd quarter 2024.
During the ten years leading up to 2022, we experienced a 217% increase from the 1st quarter of 2012 to the 1st quarter of 2022, when the median price of a single family home in Salt Lake County increased from $190,000 to $603,000. That works out to an 8.1% annual appreciation rate for that 10 year period.
If you extend the time frame from 1st quarter 2012 to the 3rd quarter of 2024, the curve flattens, with an annual rate of appreciation of 6.6%.
The median price of a condo/townhome in Salt Lake County increased from $415,000 in the 3rd quarter of 2023, to $420,000 in the 3rd quarter of 2024, a 1.2% increase.
In the chart below you can see that prices have been pretty stable since the first quarter of 2022, with the median price of a condo/townhome depreciating 3.4%, from $435,000 in the 1st quarter of 2022 to $420,000 in the 3rd quarter 2024.
During the ten years leading up to 2022, we experienced a 206% increase from the 1st quarter of 2012, when the median price of a condo/townhome in Salt Lake County was $142,000, to $435,000 in the 1st quarter of 2022. That works out to be a 7.5% annual appreciation rate
If you extend the time frame from the 1st quarter 2012 to the 3rd quarter of 2024, the curve flattens, with an annual rate of appreciation of 5.4%.
Interest Rates:
The Lock-in effect continues to restrain the number of homes listed for sale and the current interest rates continue to limit the number of home buyers looking to purchase a home, but interest rates have been coming down since early May 2024.
A year ago the average 30-year mortgage rate was at 7.5% per Freddie Mac, and peaked at 7.8% in late October 2023. Since then rates have fluctuated, but have been on a five month downward trend with the average 30-year mortgage rate at 6.1% last week. The last time we saw rates at this level was briefly in February 2023.
The Federal Reserve dropped the Federal Funds rate by 0.5% a few weeks ago, after 2 consecutive months of inflation (CPI) under 3.0%, but this didn’t change mortgage rates because the move was anticipated.
So will rates continue to decline? Even the experts have a difficult time predicting where interest rates will be a year from now or even months from now, but I have heard that lenders have started hiring again after laying off a lot of staff two years ago, so they must believe that the volume of loans will increase.
If rates do drop further as we approach spring in 2025, and we see the 30-year mortgage rate get down closer to 5%, I expect the market to heat up as more buyers enter the market, but currently, it’s more of a buyer’s market than a seller’s market in Salt Lake County.
If you or someone you know has any questions about buying or selling real estate in the Salt Lake metro area, if you’re wondering what your home is worth, or if you need a contractor referral, I’d love to hear from you!
Thank you for your repeat business and your referrals!!!
Kev
