With the second quarter of the year behind us, it's time to sit down and look at how the market fared in Salt Lake County. Whether you’re a homeowner considering selling, a prospective buyer eyeing your dream home, or simply curious about current trends, staying informed is key.

This Q2 2024 update delves into the essential metrics that define the market’s health. By analyzing these factors, we can gain valuable insights into the current state of Salt Lake’s real estate market and its potential future direction.

Number of Homes Sold

In Q2 2024, Salt Lake saw 2,227 homes sold, marking a 1.55% decrease compared to Q2 2023. This year-over-year decline shows that the overall Spring market activity is lower than last year. Compared to the previous quarter, there was an increase of 21.69%. This rise is a seasonal uptick, as Spring typically brings more activity to the real estate market.

So, what’s going on? High mortgage rates are a major factor. They haven’t budged and likely won’t until the end of the year at the earliest. This damages buyer interest, even with more homes on the market. More options haven’t led to more sales because many buyers are priced out or are being cautious.

Overall, Q2 2024 sales figures reflect a holding pattern and this trend is likely to persist until significant changes in mortgage rates stimulate more robust buyer activity.

Median Sales Price

The median sales price for homes in Salt Lake reached $625,000 in Q2 2024, representing a 5.04% increase from Q2 2023 and a 5.93% increase from last quarter. This rise in median prices shows that low supply still equates to higher prices.

Additionally, the year-over-year increase in median prices indicates that demand has remained strong enough to push prices higher. Q2 2024 saw the second highest median sales price for the last five years.

Despite an increase in available homes, prices in Salt Lake continue to climb. This suggests buyers are confident prices will keep rising, leading them to pay 10.5% above the asking price on average in June 2024.

Median Days on Market

In Q2 2024, homes for sale spent a median of 18 days on the market. This is an increase of 3 days from Q2 2023, but a decrease of 17 days compared to the previous quarter. The drop in the median Days on Market of the prior quarter reflects the typical seasonal increase in buyer activity during Spring, as homes tend to sell faster in this period.

The quick turnover of homes compared to last year shows that demand remains strong. Sellers are likely to find buyers relatively swiftly, selling nearly as fast as they have been. However, there is less pressure in the market right now to act fast, so buyers are taking longer to choose a home to offer on.

New Listings and Inventory

In Q2 2024, Salt Lake saw 3,199 new listings for single-family homes. This is a 1.2% increase from Q2 2023 and a 38.01% increase from the previous quarter.

Many sellers were waiting for rates to come down so they could turn around and buy but rates are just not coming down. So, people are starting to move forward with their plans regardless.

The active housing inventory in Utah increased by 22% between June 2023 and June 2024. However, it remains 11% lower than pre-pandemic levels (June 2019). This means there are still fewer houses available than before the pandemic, indicating an ongoing supply shortage. While the increase in inventory is a positive sign for buyers, it hasn't fully returned to pre-pandemic market conditions.

Higher mortgage rates, compared to the record lows during the pandemic, have made buying a house less affordable. The housing market has not kept pace with demand in recent years, meaning there aren’t enough houses to meet the buyer’s needs, even with the recent inventory boost.

Mortgage Rates

As of July 3, 2024, the average 30-year FRM was 6.95%. Rates are expected to decline later this year but until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. There is such a huge demand of buyers waiting for the rates to drop, that when they finally do, demand is expected to soar and prices will likely skyrocket.

While mortgage rates influence the housing market, they’re not the sole determining factor. The number of homes available, buyer sentiment, and how the economy is doing all affect the market too.

Conclusion

Salt Lake’s real estate market in Q2 2024 saw notable trends in home sales, prices, and market activity. Despite more homes being listed, a persistent supply-demand imbalance keeps the market competitive.

As always, if you have any questions regarding selling or buying, you have direct access to the best of the best for all your answers. Don’t hesitate to reach out and let’s talk about how to achieve your real estate goals.