Estimated read time: 6-7 minutes
- Utah's spring housing market shows unpredictability with mixed signals from real estate agents.
- Existing home sales fell 5.9% in March, raising concerns amid economic uncertainty.
- Increased housing inventory offers buyers more choices, though high prices and rates persist.
SALT LAKE CITY — Spring isn't just the time when flowers begin bursting into bloom. It's also traditionally the busiest season for home sales, as would-be buyers with a summertime move in mind start shopping.
This year, though, the spring housing market is already showing signs of wilting. Existing home sales in the U.S. fell in March by 5.9%, the biggest monthly decline since November 2022.
Still to come are the effects of the economic uncertainty sparked by President Donald Trump's on-again, off-again tariffs announced on April 2 and his recent pressure on the Federal Reserve chairman, moves that have roiled the financial world.
The spring housing market in Utah is already being seen as oddly unpredictable.
A 'weird' housing market
"It's just weird," Sugarhouse real estate agent Max Strayer said. "I don't like using that word when talking about the whole of the Salt Lake City market. But it's very difficult to track right now."
Strayer, the managing partner of a real estate office in Salt Lake City's eclectic 9th and 9th neighborhood, said some properties for sale are attracting big crowds at open houses and selling fast, similar to what happened during the COVID-19 pandemic buying frenzy.
At the same time, other houses on the market are stagnating, he said, with buyers seemingly split between those "rushing in because of the state of the economy and the world," worried the market is going to get worse, and those who are taking their time.
"It's kind of all over the place," said Strayer, who got his start in real estate about eight years ago.
Still, he said the current market feels good compared to what he saw when mortgage rates shot up from record lows three years ago as the Fed started hiking benchmark rates to slow post-pandemic inflation.
"I don't think it's a fantastic market for either buyer or seller but it's healthy," Strayer said, adding, "We've been through way worse markets than this. I'm sure we'll have worse markets in the future and we'll have better markets in the future."
Ogden real estate agent Stephanie Taylor, the incoming president of the Utah Association of Realtors, said when it comes to this spring's housing market, "weird might be a good description for it."
Utahns unsure if now's the time to buy
Taylor said overall home sales in Utah were down nearly 3% in March compared to the same month in 2024. Also headed in the wrong direction is another key indicator, pending home sales, which fell 4%.
"It tells us there's a lot of market uncertainty," she said, citing recent drops in the stock market that have left Utahns looking for a new place to live wondering if home prices are going to do the same.
"Your average homebuyer just doesn't know," Taylor said. "It leaves them in a place where they think, 'Should I wait, will I be better off? Or should I move forward?' We hear it everyday in our discussions with homebuyers. It's hard for them to know if the right time to buy is now."
She said would-be buyers are also contending with the fear that the nation's economic turmoil could end up putting them in a position where they would no longer be able to afford the home they've purchased.
"It's interesting times," Taylor said.
But there are some positives for buyers, such as a 34% increase in housing inventory in March compared to the same month a year ago. The added homes are across all price ranges, she said, including below the $500,000 mark that now denotes affordability.
"Homebuyers haven't had this much selection since before the pandemic," Taylor said. However, with homes remaining on the market for less than six months, it's technically still considered a seller's market.
With 18 years in the business, she's predicting the spring housing market will improve. By the end of March, yearly sales were up nearly 30% for homes priced above $1.5 million and above, although Utahns earning a median wage are still priced out of the market.
"I'm an optimist," Taylor said. "Everyone needs a roof over their head, right? The benefits of it increasing in value naturally and having tax benefits make it a safer option in times of uncertainty."
Uncertainty affecting consumer confidence
Not everyone is so upbeat about the direction the spring housing market will take.
"That's a super-loaded question right now," said Danny Wall, director of the Master of Real Estate Development program at the University of Utah's David Eccles School of Business. "I would say the key word right now is uncertainty."
A lot of that uncertainty is coming from the federal government, he said, with the administration's policies potentially increasing the cost of building new homes on top of triggering volatility in financial markets.
"We're seeing signs throughout the economy that consumers are becoming more cautious and consumer confidence has dropped quite a bit," Wall said, adding, "If you're not feeling secure and safe and certain economically, it makes it harder to make large acquisitions."
That hesitancy, along with high interest rates, high prices and a supply shortage, fueled in part by homeowners staying put so they can hold onto lower-rate mortgages, likely adds up to less demand, he said.
"My guess is that there won't be quite as many buyers," Wall said, even though with many homebuilders buying down interest rates "there's still deals out there to be done. But I think the political climate right now might have a cooling effect on sales."
Are would-be homebuyers really cautious?
Jim Bringhurst, who is also a real estate agent in Sugarhouse, said it's too early to tell what Utah's spring housing market will look like. But, he pointed out, a house he recently listed at $1.6 million had a lot of showings and a full-price offer in just a couple of days.
He doesn't see the current economic situation as having that big of an impact on homebuyers.
"It's been hard over the last several years. Prices have gone up on everything. I think a lot of it has to do with what they're hearing, too. I think people are still moving and still need to make a change," Bringhurst said. "There's some caution. I don't think it's huge."
During his 30 years in the business, he said, there have been much worse housing markets.
"I still think our market is still pretty healthy and I think Utah does a lot better than some states. In general, our economy is pretty strong," Bringhurst said. "We have people wanting to move here from other states."
