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SANDY — Home prices in Utah continued moving higher as the median sales price reached a record high of $405,000 in March, according to data compiled by the Utah Association of Realtors.
That equates to a price increase of nearly 20%, compared to March of 2020 when the median home sales price was $338,000. In March of 2019, the median sales price in Utah was $305,000.
"It's insane," said Dave Robison, the owner of goBE Realty, to describe Utah's housing market. "It's unheard of. It's unprecedented. We've never seen anything like it."
Rising prices didn't stop buyers from completing purchases in March. In fact, Utah set a record for the most homes sold (4,390 homes) during any March since the association's records started in 2003.
That's probably the hardest conversation to have is to tell someone, 'Guess what? You can't afford a home now.'
–Dave Robison
The association's March report said new homebuilders were working to add homes to the market, but that supply chain issues and rising construction prices were limiting new home construction.
"Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months," said the March "Monthly Indicator" that was released on April 23.
Robison said Utah's housing shortage has made it especially difficult for first-time buyers who are competing against dozens of other potential buyers.
"You may have to put offers on 30 homes, or something, if you're in that lower price bracket," he said.
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With the price of lumber skyrocketing, real estate experts are warning homebuyers to pay close attention to contracts with builders and understand who is responsible for rising construction costs.Robison, who was the 2020 president of the Utah Association of Realtors, said some of his clients were getting priced out of the market.
"That's probably the hardest conversation to have is to tell someone, 'Guess what? You can't afford a home now,'" he said.
Current interest rates have helped buyers absorb the rising home prices, Robison said. He worries about future generations being able to stay in Utah.
"The public as a whole is really being hurt by this right now because it affects our entire culture," Robison said. "It affects everybody. We really need a lot more housing and we need it more affordable."
