Utah Real Estate Market: Will Sellers Dominate the Market in 2024? (2024)

The current median home sale price,$550,300is sluggishly growing at 6.7% YoY. Also, homes are sitting on the market for 35 days. All this indicates that Utah real estate market is slightly less competitive.

Additionally, only 3,255 homes were sold in June 2024, down from 3,429 in the previous year. Sellers are receiving fewer offers. Such inactivity in the market is mainly due to the recentNAR settlement. People are anxious about the selling prices and agents’ compensation.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with lowmortgage rates.

Here are some tips for you to sustain in the market:

• If You Are a Home Buyer:The current high-inventory of 152K homes and the expected drop in home prices can benefit you. The low interest rates at6.60%-6.89%are now in buyers’ favor. Also, in case of low housing demand and prices, you can request for seller concessions.
• If You Are a Home Seller:The correction in the home prices is long overdue. In the wake of NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.

So, How Is the Real Estate Market in Utah?

Balanced!

The number of homes for sale increased in June 2024 by36.7%compared to 2023. It’s been consecutively growing for the eighth month in a row.

• Median Days on Market:The median days on the market for homes for sale are 35days, up by 5 days YoY. Homes spending more days on the market indicate less housing demand.
• Housing Inventory and Supply:If you’re a buyer, you have more inventory to choose from. Homes for sale grew by11%YoY. Currently, there are 15,300homes for sale in Utah. Also, the average months of supply are 3 months.
• Average Home Prices:The average median home price in Utah is $419,200. In 2024, experts predict the median sale price may decrease due to the increased inventory. Currently, the sale-to-list price ratio is at 26.6%, with a decline of 2.8 pt YoY.
• Home Sales:As per June 2024 data, home sales decreased by 4.6% YoY! Only 3,255 homes were sold, down from 3,429 in June 2023.
• Average Rent Prices:Rental costs vary statewide. An average tenant in Holladay pays$1,520, while the one living in Kaysville pays$1,785. You should check the rent rates in your region.

Why Is Utah a Buyer’s Market Now?

Buyers have more housing inventory to explore. The additional housing supply can balance the market and keep the home prices in check. Let’s look at some more facts:

• More Days on the Market: The share of homes with more days on the market have increased. In metro cities like Cottonwood Heights, Holladay, and Kaysville, homes spend an average of 10 to 26 days on the market.
• Low Housing Demand: The demand in Orem is low with only 48 homes sold in June, down from 58 last year.
• More Homes Have Price Drops: 32.5% of homes had price drops in June compared to 31.4% last year. The growing rate of price drops suggest a shift toward buyers’ market.
• Low Mortgage Rates: Even the mortgage rates are at record low at around 6.60%-6.89%. So, you can take advantage of low mortgage rates and get pre approved for a mortgage now.

Utah Housing Market Predictions 2024

Here are the predictions for Utah’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: Higher inventory and homes staying for long in the market will bring home shoppers back to the market.
2. Interest Rates are Expected to Drop: Mortgage rates hit 6.34% in July, 2024. NAR predicts the average interest rate will drop to 6.3% by year end. It will attract more buyers to apply for the loans.
3. New Home Constructions Will Shoot Up: 33.4% of single-family homes for sale in Q1 were newly built. Construction of homes has soared, and builders are responding to homebuying demand in Florida. This is fueled by remote work and low mortgage rates.
4. Home Prices Will Drop: Home prices are sluggish now and will gradually start to drop.
5. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. But in 2022, they offered only 86%, and around 70% in 2023. The slow market has affected iBuyers like Opendoor and Offerpad. They lost billions of dollars in Q3, 2023. Their continuous lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has reduced buyer agent’s fees to zero. Let’s understand it through some points:

1. Buyer Agents Will Be Affected: As per the NAR settlement, buyer agent’s fee is removed. Buyers may find it difficult to transact in the market without any agents. Buyer agents may probably become obsolete.
2. Seller Concession Will Increase: The number of offline sale transactions will increase. If sellers don’t have to pay any commissions to the buyer agent, buyers may request for seller concessions. Also, builders have begun to offer huge concessions to attract buyers.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K in 2023!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in Utah Going to Crash?

A housing market crash in Utah is unlikely. Utah home values have been up by about 62.17% over the past 5 years. A positive trend is predicted for the next five years by the analysts. Utah’s job market is also strong. The unemployment rate is only 3%.

Additionally, the average cost of living in Utah is $42,653 compared to the national average of $61,334. So, it is unlikely that Utah’s housing market would crash anytime soon.

If you are looking for a home in the Beehive State, find your dream house here.

2024: Is It a Buyers’ or Sellers’ Market Now?

In the upcoming months of 2024, the housing market is expected to lean more in favor of buyers. Home prices are rising slowly, and the number of homes for sale (152K) has increased by 10.5% year over year. It offers buyers more options.

With mortgage rates around 6.08%, buyers have more purchasing power, and more homeowners are likely to list properties on Utah MLS. The properties for sale in Utah will increase.

So, whether you are looking for a condo in West Valley or a single-family primary home in Clinton, you will find your dream home in upcoming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision

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