Utah Housing Market Analysis - July 2024
The Utah housing market in July 2024 presents a dynamic landscape with notable shifts in various key metrics. This analysis delves into the current state of the market, highlighting year-over-year (YoY) changes and providing insights into the trends shaping the real estate environment in Utah.
Median Sales Price and List Price
The median sales price for homes in Utah stands at $559,200, reflecting a modest increase of 1.6% YoY. This upward trend indicates a steady appreciation in home values, albeit at a slower pace compared to previous years. Conversely, the median list price has experienced a decline, now at $583,100, down by 3.3% YoY. This discrepancy between sales and list prices suggests a potential softening in seller expectations or a more competitive market environment.
Price Per Square Foot
The median price per square foot has risen to $258, marking a 3.6% increase YoY. This metric underscores the growing value of residential space in Utah. Similarly, the median list price per square foot has also seen an uptick, now at $271, up by 2.9% YoY. These increases highlight a consistent demand for housing, driving up the cost per unit area.
Sales and Inventory
Home sales have shown a robust performance with 3,308 homes sold in July 2024, representing a significant 7.8% increase YoY. Pending sales have also risen to 4,029, up by 7.6% YoY, indicating a healthy pipeline of transactions. New listings have surged to 4,616, a 7.9% increase YoY, suggesting that more homeowners are entering the market. Inventory levels have expanded to 11,368, up by 12.2% YoY, providing buyers with more options and potentially easing some of the competitive pressures.
Market Dynamics
The months of supply, a critical indicator of market balance, has increased to 3.40 months, up by 10.0% YoY. This rise suggests a shift towards a more balanced market, moving away from the extreme seller's market conditions seen in recent years. The median days on market have also increased to 39 days, a 6.0% rise YoY, indicating that homes are taking slightly longer to sell.
Sale to List Ratios and Price Adjustments
The average sale to list ratio has slightly decreased to 98.9%, down by 0.2% YoY, reflecting a minor adjustment in the negotiation dynamics between buyers and sellers. The percentage of homes sold above list price has dropped to 24.4%, a 4.1% decrease YoY, suggesting that bidding wars are becoming less common. Price drops have become more frequent, now at 35.3%, up by 3.6% YoY, indicating that sellers are more willing to adjust their pricing to attract buyers. Additionally, the percentage of homes going off market within two weeks has decreased to 30.2%, down by 3.5% YoY, further highlighting a cooling in the market's rapid pace.
Conclusion
In summary, the Utah housing market in July 2024 is characterized by a mix of rising home values and increased inventory, coupled with a slight cooling in market dynamics. The modest increase in median sales prices and price per square foot reflects ongoing demand, while the rise in inventory and new listings suggests a more balanced market. The extended days on market and increased price drops indicate that buyers may have more negotiating power than in previous years. Overall, these trends point to a market that is stabilizing after a period of rapid growth, offering opportunities for both buyers and sellers.
