SANDY, Utah — The real estate market in Utah is witnessing a significant shift as the number of active home listings surged to 13,444 by June 30, representing a 33% increase from 10,138 listings a year earlier.
This increase translates to over 5,000 additional homes on the market, marking a remarkable 66% rise compared to just six months prior, on June 30, 2023.
The data, provided by the Salt Lake Board of Realtors® and UtahRealEstate.com, indicates a substantial change in the housing inventory, particularly when compared to the 6,192 homes listed on June 30, 2020, during the early days of the COVID-19 pandemic.
Claire Larson, president of the Salt Lake Board of Realtors®, attributed the rise in active listings primarily to soaring mortgage interest rates that are eroding affordability for many potential buyers.
“An increase of over 5,000 listings from just two years ago means buyers now have more options and greater negotiating power on price and terms,” Larson noted.
Furthermore, the growing inventory is influenced by heightened new-home construction and landlords selling off investment properties due to diminishing home appreciation and escalating carrying costs.
“Many homes are simply staying on the market longer due to more cautious buyers and affordability challenges,” Larson added, emphasizing that the days-on-market for properties have increased, contributing to the accumulation of listings.
Current statistics show that Utah has approximately a six-month supply of housing inventory based on home sales over the past half-year.
This figure implies that, if no new homes were listed, all existing homes would sell within six months.
In real estate terms, a balanced market is identified when supply and demand are roughly equal, typically characterized by five to six months of inventory.
A buyer’s market occurs when inventory exceeds six months, pointing to a surplus of homes compared to demand, while a seller’s market thrives on high demand with limited supply when inventory dips below five months.
Dejan Eskic, chief economist at the Salt Lake Board of Realtors®, highlighted the transition in the Utah housing market, stating, “The substantial rise in active listings reflects a combination of increased seller activity and slowing buyer demand.”
While the market is not fully entrenched in a buyer’s market, the dynamics of power are shifting, especially in mid-to-high-end segments and less sought-after regions.
As a consequence, price reductions are becoming more frequent, particularly among higher-priced homes and those situated in less desirable locations, as sellers adjust their expectations to current market realities.
About the Salt Lake Board of Realtors®:
The Salt Lake Board of Realtors® acts as the Wasatch Front’s voice of real estate and serves as the essential source for housing market insights.
As the largest shareholder of UtahRealEstate.com, which stands as one of the premier Multiple Listing Services in the United States, the organization has been a leader in promoting homeownership and safeguarding private property rights since its inception in 1917.
About UtahRealEstate.com:
Established in 1994, UtahRealEstate.com has emerged as the leading real estate technology provider in Utah and one of the largest multiple listing services nationwide, catering to over 8 million consumers annually and offering services to approximately 20,000 real estate professionals, which accounts for nearly 97% of all Realtors® in the state of Utah.
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