Utah’s home buying frenzy calming down, prices remain high

Sep 28, 2021, 9:11 PM | Updated: 10:47 pm

SANDY, Utah – The Beehive State’s housing market is catching its breath, according to the Utah Association of Realtors, but prices remain high and inventory low.

“The big story from the August report is we’ve got sales that have slowed a bit from earlier this year,” said Deanna Devey, the association’s director of communications and operations. “But we’re still seeing a huge increase in prices.”

The new report showed the median sales price for a home in Utah jumped 26% from one year ago to $455,000.

In August of 2020, the median sales price was $360,000.

Homes for sale in Utah spent an average of 18 days on the market before going under contract. That’s a decrease of nearly 54% from one year ago, when homes were on the market for an average of 39 days, according to the August report.

“While, yes, it’s such good news that we’re not seeing the crazy frenzy that we saw before, it’s still a very competitive market,” Devey said.

 “The biggest difference you find is that, instead of getting 30 offers on a home, it might take you a couple weeks, instead of one weekend, to get an offer,” said Dave Robison, the owner of goBE Realty. “You might still end up with a couple offers.”

Robison, who was the 2020 president of the Utah Association of Realtors, said the big problem facing the state’s housing market is the lack of inventory.

“We have about 5,700 homes for sale,” Robison explained. “For it to be normal — for the market to not be boiling — we need 20,000 homes. We need a great deal amount of new inventory on the market for it not to be boiling.”

The August Monthly Indicators report said home builders are struggling to keep up with demand.

“Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials,” the report said.

Both Devey and Robison expect that builders in Utah will be listing more new homes for sale as we approach the end of the year.

“Between now and December, we’re actually going to see the builders put a lot of inventory on the market,” Robison said. “That’s a good thing. It’s something to look forward to.”

The reason, Robison said, is that many builders switched to spec homes earlier this year because of the rapidly rising prices, and now, those homes are nearing completion.

“I think that we’ll see more inventory coming on to the market and that’s great news for buyers,” Devey said. “We’ve had some awesome homebuilding that’s happened this year.”

In August, Utah had a 1.2-month supply of housing inventory. A six-month supply is considered a balanced market between buyers and sellers, the association said.

KSL 5 TV Live

Unaffordable Utah

New townhomes...

Eliza Pace

Utah ranked No. 5 worst state to find a starter home

In a recent study, Utah was ranked the fifth worst state to find a starter home. Here's why.

10 days ago

A new study highlighted six "million-dollar cities" in Utah with an average listed home price of ov...

Daniel Woodruff

Utah has more ‘million-dollar cities’ as home prices climb

A new Zillow study put Utah in the top 15 states with the most "million-dollar cities." But other places in Utah aren't incredibly less expensive, economists say.

18 days ago

Lehi homes...

Daniel Woodruff

Governor highlights bills to help Utah homebuyers, but will they make a difference?

Gov. Spencer Cox on Thursday highlighted several new bills he just signed into law that are aimed at getting more buyers into the market.

24 days ago

a sign announcing rent...

Daniel Woodruff

Utah senators kill compromise bill giving tenants more notice of rent increases

A Utah lawmaker’s push to give tenants more notice of rent increases hit a wall as Republicans on a Senate committee voted not to advance it.

2 months ago

Homes under construction...

Daniel Woodruff

Utah lawmakers eye changes to first-time homebuyer program

Utah's new first-time homebuyer program could soon be changing.

2 months ago

two flags in front of the Utah Capitol...

Daniel Woodruff

Proposal to expand Utah’s earned income tax credit stalls at Legislature

A bill that would have expanded Utah’s earned income tax credit by making it refundable failed to pass out of a legislative committee Tuesday afternoon.

3 months ago

Sponsored Articles

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.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Utah’s home buying frenzy calming down, prices remain high