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SANDY — Home sales in Utah fell nearly 41% in October compared to one year ago, according to the Utah Association of Realtors, while the median sales price increased 7% during the same period.
"Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year," said the association's monthly report.
The median home sales price in Utah was $492,000 in October, compared to $460,000 a year ago. However, prices have fallen from the peak of $539,000 in May of this year.
"The U.S. housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers," the report said. "Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace."
Realtor Stephanie Grable with The Stern Team at Keller Williams said the market has shifted to a neutral market that's merging into a buyers' market.
"What we did during the pandemic, that wasn't sustainable. That was an anomaly. That was not what's normal," she said.
Grable said buyers and sellers are once again bargaining over prices, concessions and repairs.
"Prior to the pandemic, sellers and buyers actually negotiated with each other," she explained. "We forgot what that was like for about two years."
The number of homes available for sale in Utah jumped nearly 94% from this time last year to 12,237 active listings, according to the October real estate report.
Grable anticipates that more buyers will return if interest rates fall. Until then, she reminds that with double the homes on the market, buyers currently have more options and less competition.
"Right now the bidding wars don't exist," she said. "So you have the option to go get that house that you want and refinance that rate later."
Homes are sitting on the market for an average of 46 days until an offer is accepted, the report said. That's double the market days experienced last October.
"Many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers," the report said.
Homeowners who sold their homes in October received 94.9% of their original list price, not accounting for concessions. One year ago, sellers were receiving 100.3% of their original list price.
