Third quarter real estate stats are out for Salt Lake County and frankly, they are a bit odd. The median sold price in the Q3 here was $600,000, which is down almost 6% over Q2 of this year. BUT if we look at stats from last year, we see a growth pattern in sales of 9%. Interest rates on 30 year mortgages are now up to 7% or more and less buyers are coming into the market right now, so predictions for this final quarter aren’t looking too great. The Fed is definitely going to keep raising interest rates until inflation cools and we’re seeing massive price reductions of homes on the market. Nationally, new listings in September fell 22% over the previous month, and 17% of listings under contract/sale pending failed to close. Sales are down 20% over 2021. In the County, Q3 sales were down 18.8% compared to Q2 and down 30% compared to the same time in 2021.
‘Run, don’t walk to the nearest exit’ is starting to be the war cry for some sellers, as ‘days on market’ in Q3 moved to 22 days, VS six days on the market until recently. If you love house porn you’ll notice on many listings that sellers are willing to ‘help pay buyers closing costs’ or are offering incentives like new carpeting. This is the time of year when people begin to seriously nest-cold weather, holidays. And given those vibes it’s when the market generally slows down. Although we’ve seen only smoking statistics for the last few years here, we will experience a slow down as predictors are saying that the housing market needs this kind of correction to balance out housing supply and demand.
I can’t stress enough that if you can qualify for a loan, there are options to get better rates. The ‘two-one’ buy down is a great product, wherein if rates are at 7, you loan starts at 5% for a year, then 6% for another year, and then fixes at 7% for the rest of the loan. You can refinance if rates go down and the initial discount will hopefully allow for you to get raises at work to afford that 7% rate down the road. PLUS buyers are starting to get great deals as the market softens. There’s no better time in Utah to shop for homes than during the colder months. Why? It’s nice to know how that potential house fares in winter! When you walk into an empty house, does it feel drafty although the heat is on? How’s the insulation in the attic, around the doors and windows, and under the floors? Does the furnace growl like your stomach in the morning? Since it’s cool to cold here about half of the year, a well-built home with good insulation is a must. And if seller’s are willing to chip in to the deal to make you more comfortable by giving you a credit towards closing costs or added insulation…well, it doesn’t cost a dime to make an offer!