SALT LAKE CITY (ABC4) — Utah’s housing market may be on the rebound according to a forecast commissioned by the Salt Lake Board of Realtors.
The report predicted Salt Lake County home sales will increase in 2024 by 16%, reaching about 13,000 homes. The Board of Realtors said this would be an improvement over last year’s 12-year-low of only 11,195 home sales.
Forecasters credited the potential increase in home sales to more favorable mortgage rates, improved consumer sentiment and an increase in listings. Mortgage rates are reportedly expected to fall to the 6-6.5% level over the next year with a further drop to 5.5-6% in 2025.
As mortgage rates begin to soften, however, the prices of Salt Lake County homes are expected to rise. Forecasters anticipate a 3% raise in median sales price for all homes, bringing the median to $530,000. Single-family homes are predicted to grow by 2.4% to about $600,000 and condos, townhomes and twin homes are expected to see a 5% increase in price to about $436,000.
Still, the Kem C. Gardner Policy Institute has indicated consumer sentiment in Utah has been on a steady increase since October 2023, reaching its highest rating since October 2021.
“The recent trend indicates economic optimism and coincides with the resiliency seen in the Utah and U.S. economies over the past few years,” the Policy Institute’s consumer report read.
Despite a more positive outlook on housing and consumerism, however, the price points of housing may still be an issue. The Salt Lake Board of Realtors said affordability will continue to prevent home sales from recovering to pre-pandemic levels, when roughly 18,000 homes were sold annually in Salt Lake County, alone.
Utah lawmakers have begun to take action and address Utah’s housing concern. In his budget for the 2025 fiscal year, Utah Gov. Spencer Cox set the ambitious goal to create 35,000 new starter homes by 2028. In addition to helping fund the construction of new houses, Cox’s budget includes an additional $50 million to be invested into first-time homebuyer assistance.