Lack Of Options Leads To Bidding Wars For Utah Homebuyers

Mar 24, 2021, 8:50 PM | Updated: 10:52 pm

LEHI, Utah – Homebuyers in the Beehive State are facing intense competition and bidding wars due to strong demand and a lack of available homes for sale, according to real estate experts.

“I’ve never seen it this crazy, as far as how hectic it is,” said Jeremy Holmgren, the Utah manager for Zions Bank Mortgage. “There’s so little inventory. Rates are still really low, so the buying power is there and it’s just a crazy, crazy time to buy a home.”

Holmgren calls it the perfect storm affecting the Utah housing market that includes a lot of cash offers and out-of-state buyers moving to the state.

“A lot of California buyers coming in and it just creates a very difficult situation for the standard homebuyer who’s looking to buy their first home or upgrade to their second home,” he said.

A report by Redfin found that: “Nine out of 10 Redfin offers in Salt Lake City in January faced competition, the highest bidding-war rate of the 24 metros included in this analysis.”

The Utah Association of Realtors reported that at the end of February, Utah had 4,091 properties available for sale compared to 11,283 properties in February 2020, which equates to a nearly 64% fewer homes on the market.

Jed Nilson is the vice president of the Utah Association of Realtors and also a homebuilder. He said he’s seen firsthand how the ultra-low housing inventory is affecting people.

“Just recently we released four townhomes for sale and received 40 offers,” he said.

The association’s latest report shows that the median sales price for homes in Utah has jumped 15% over the last year.

“It’s becoming extremely challenging if you’re a buyer that has a limited down payment,” Nilson explained, “In many cases, people are having to pay their typical down payment plus an amount above appraised value.”

A new study from the Inspection Support Network found that the Salt Lake City area had the 7th fewest homes for sale out of all large U.S. metros, and that the Ogden-Clearfield area had the 2nd fewest homes for sale among mid-size metros.

“Until the demand for buying in Utah goes down and the inventory goes up, I think we’re going to be in this situation for a while,” Holmgren said.

KSL 5 TV Live

Unaffordable Utah

(FILE) Two signs advertising bedrooms for rent....

Daniel Woodruff

Rent costs are up nationally, but what about Utah?

While some aspects of inflation are cooling down, the cost of renting has continued rising.

10 days ago

KSL’s Matt Gephardt price shopped several items at traditional grocery stores and specialty food ...

Matt Gephardt

Gephardt Busts Inflation: Will shopping specialty food markets save you money?

To save money on your groceries, a specialty food market might not come to mind. But KSL Consumer Investigator Matt Gephardt found branching out to specialty food markets might help you bust some grocery inflation.

12 days ago

High food prices are squeezing Utah families, and going to the grocery store can be a frustrating e...

Daniel Woodruff

Is grocery shopping ‘frustrating and stressful’? Here are ways to stretch your dollars

High food prices are squeezing Utah families, and going to the grocery store can be a frustrating experience.

13 days ago

SEATTLE, WA - OCTOBER 31: A Redfin real estate yard sign is pictured in front of a house for sale o...

Alex Veiga, AP Business Writer

Redfin agrees to pay $9.25 million to settle real estate broker commission lawsuits

Redfin has agreed to pay $9.25 million to settle federal lawsuits that claim U.S. homeowners were saddled with artificially inflated broker commissions when they sold their homes.

20 days ago

(KSL TV)...

Eliza Pace

Study finds nearly 40% of homeowners don’t believe they could afford their home if buying today

A new study shows 40% of U.S. homebuyers don't believe they could afford their home if they bought it today.

24 days ago

New homes on a street lined with new homes built by DR Horton in Lehi. (Greg Anderson, KSL TV)...

Lindsay Aerts

Utahns are ‘fed up and priced out,’ new Utah survey finds

The study conducted by the Utah Foundation reveals that housing affordability and politicians ignoring voters are the top two concerns among Utahns.

26 days ago

Sponsored Articles

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 Internet Safety Tips for Kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Lack Of Options Leads To Bidding Wars For Utah Homebuyers