Salt Lake City Market Update August 2022
/I’ve been being asked what the real estate market is like with the new, higher interest rates and if housing prices will fall dramatically. Let’s discuss the info coming out from the experts at The National Board of Realtors and the University of Utah.
I haven't seen a lot of expectations for prices to fall dramatically from the experts. There has been a housing shortage here for the last few years and the demand hasn't been exhausted yet. The higher interest rates have definitely slowed the market and prices are not actively rising, but they haven't really fallen yet. The last statistics released were from June of this year. Houses were selling at 100.9% of the listing price. Same time last year they were selling at about 104.4% of listing.
I'm not one of the so-called experts, but as someone on the ground it feels very slow right now. Seller's are more willing to negotiate and give some concessions to buyers than they were a year ago. Or really even 4 months ago. The rising interest rates have definitely had their effect. Buyers are more wary of paying higher prices because their mortgage is significantly higher at these rates. I think prices may lower slightly for a bit, but because our inventory is still pretty low, I don't think that will last. I do think, however, that the prices will rise much slower than they did last year (27%!).
If you’re looking to buy or sell, contact me and we’ll get started!