Salt Lake’s real estate market is finally calmer but not cheaper

Signs of a cooling market persist in Salt Lake County, according to the latest data from the Utah Association of Realtors.

Why it matters: After two-plus years of plummeting inventory and soaring home prices, buyers have waited a long time for a little relief.

Yes, but: Rising borrowing costs coupled with already high home prices are causing sales to slow, Dave Anderton, communications director of the Salt Lake Board of Realtors, tells Axios.

What's happening: Current buyers have more homes to choose from. But the leap in mortgage rates has squeezed people’s purchasing power, Scott Robbins, executive board member of the Utah Association of Realtors, said.

By the numbers: Inventory grew 69.1% compared to this time last year, per the Utah Association of Realtors’ local market update for September.

• Meanwhile, pending sales are down 48.8% year over year.
• The median sales price rose 6.3% year over year, but it’s fallen in recent months.
• In May, the median sales price was $555,000, and in September it was $521,000.

Sellers aren’t getting 100% of their asking price anymore. On average, homes sold for 95.7% of the list price in September 2022.

• This time last year, homes were selling for 100.8% of the listing price.
• More than half (56.4%) of Salt Lake City sellers dropped their asking prices this summer.

Homes are sitting on the market longer, too. In September 2022, homes sold in 32 days on average, compared to 19 days in September 2021.

What’s next: Come winter, Robbins expects prices will continue to soften.

• “To make their house more competitive and more attractive, sellers will probably have to reduce their asking price,” Robbins told Axios.