Housing Demand is Strong, but Inventory Shrinks

SANDY (April 28, 2016) – The Salt Lake Board of Realtors® today reported fewer single-family homes were sold in Salt Lake County in the first quarter of 2016, while sales of condominiums increased.

“Demand for housing is strong, but a limited supply of housing inventory pushed sales down,” said Cheryl Acker, president of the Salt Lake Board of Realtors® and branch broker of Salt Lake-based Realtypath. “In contrast, more buyers are looking for more affordable options and moving to condos and townhomes.”

There were 2,569 single-family homes sold in the first three months of 2016, a 2 percent decline compared to 2,614 sales in the first quarter of 2015. Condominium sales increased to 730 units sold, a 1 percent increase compared to 720 sales a year ago.

New listings of homes fell to 4,994 in the first quarter, down 8 percent from 5,406 new listings a year earlier. In Salt Lake County there is currently less than a four-month supply of housing inventory, based on sales trends of single-family homes over the past year.

Single-family home sales increased in Utah (up 8 percent), Tooele (up 4 percent) and Weber (up 4 percent) counties. Davis County home sales dropped 3 percent. Overall, sales of single-family homes across the Wasatch Front were flat year-over-year – 5,692 sales in this year’s first quarter compared to 5,691 sales last year.

The median price of a single-family home in Salt Lake County climbed to $271,400 in the first quarter, up 6 percent compared to $255,000 in the first quarter of 2015. Condo prices increased 5 percent to $188,250 from $179,650 a year ago.

The top five most expensive ZIP code areas across the Wasatch Front in the first quarter for single-family homes were: the Avenues (84103) $451,000; Emigration Canyon (84108) $437,500; Draper (84020) $431,750; Holladay (84124) $413,500; and Sandy (84092) $399,900. Four of these five areas in the first quarter saw a drop in home sales. Only the Avenues saw sales rise.

The average cumulative days a listing was on the market in the first quarter in Salt Lake County fell to 59 days, down from 79 days in the first quarter of 2015.

 

This article was taken from the Salt Lake Board of Realtors