Salt Lake City home prices jump over 27%, second largest increase in the U.S., says report

Utah Housing Crunch
Crazy Housing Market

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SALT LAKE CITY (ABC4) – Compared to last year, home prices in Salt Lake City are up 27.3%. That is the second-largest increase in home-sale prices in the U.S., according to a new report.

Despite this, Salt Lake City saw the third-largest decrease in year-over-year sales when comparing September 2021 to September 2020, RE/MAX’s latest report shows. Utah’s capital went from over 1,800 closed transactions in September 2020 to over 1,500 in 2021.

Additionally, Salt Lake City saw the second-largest increase in median home sale prices, jumping from $385,000 in September 2020 to $490,000 last month – a 27.3% increase. According to RE/MAX, only one metro market beat out Salt Lake City for an increase in median home price – Boise, Idaho.

Still, the housing market in Salt Lake City may be slowing down.

WATCH: Breaking down ‘The State of the State’s Housing Market’

Josh Horner of RE/MAX Masters in Salt Lake City released the following statement:

“The number of offers received per property has dropped over the last few months. We believe this drop is due to a segment of buyers who stopped looking for homes at this time because they simply couldn’t compete. Remaining, however, are the buyers who can really compete with cash or high offers, investors, and even institutional buyers. It might be a slightly smaller segment of buyers but they’re the serious ones. The demand for housing from local Utahns as well as out-of-state buyers remains strong. We’ve listed and sold 13 homes in the last few months in Sugarhouse and Park City; all of which went under contract in 1 to 20 days.
Nationwide the housing market is also solid. Utah, however, seems to be stronger and perhaps more durable than other markets. Utah’s population growth continues to rise; in fact, according to the recent U.S. Census Bureau, Utah is now one of the fastest-growing places in the nation. Couple that with low taxes, a favorable business climate, and major projects like the $4 billion airport renovation, a 20,000 acre inland port, and a brand new ski resort on the backside of Deer Valley. Utah currently has a very durable economy and real estate market.”

This RE/MAX report supports a recent study by the Kem C. Gardner Policy Institute at the University of Utah. Released earlier this month, that study found which areas in Utah have seen the biggest spikes in home prices.

For more on that report, click here.

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