The real estate market has been experiencing a bit of a yo-yo effect in recent months, and Salt Lake County is no exception. While mortgage rates have come down slightly, the fact that it’s an election year is adding some uncertainty to the mix.

In this Q3 2024 update, we’ll dive into the key trends that shaped Salt Lake's real estate market. From the number of homes sold to changes in median prices and how long homes are sitting on the market, this analysis will help you make sense of where things stand and what to expect as we head into the final quarter of the year.

Number of Homes Sold

In Q3 2024, 2,190 homes were sold in Salt Lake County, a slight uptick of 2% compared to Q3 2023. This modest increase signals a steadying in the market, with more transactions than last year.

When comparing Q3 to Q2 2024, there was a 6.2% drop in homes sold. Summer is typically the busiest time in real estate, so seeing fewer homes sold in the third quarter is expected as the market cools down after the peak months. Despite this, the overall number of homes sold is still relatively strong, signaling that Salt Lake's market remains competitive—just not at the feverish pace we’ve seen in previous years.

While there has been an increase in home sales compared to last year, the overall pace of buying remains cautious. This could be attributed to various factors, such as rising interest rates and the uncertainty often associated with election years, which can make buyers and sellers more hesitant.

Median Sales Price

The median sales price for a home in Salt Lake County for Q3 2024 came in at $624,999, which marks a 3.3% increase compared to the same quarter last year.

This year-over-year price increase reflects the county’s resilience, even as higher mortgage rates make affordability a bigger concern for buyers. But note that homes are still fetching strong prices.

Looking at the comparison to Q2 2024, there’s been no changes in median prices. Buyers are less likely to rush into a purchase, and sellers might adjust their prices slightly to reflect that.

However, home prices remain elevated, and the overall trend is one of steady, long-term appreciation. For buyers, this means acting quickly could still be wise before prices creep higher.

Median Days on Market

Homes in Salt Lake County spent an average of 28 days on the market in Q3 2024, which is 6 days longer than the same period last year.

This increase suggests buyers are taking more time to consider their options, likely weighing the impact of higher mortgage rates and broader economic uncertainties. But 28 days is still a relatively short time for homes to sell, indicating that well-priced properties continue to attract attention fairly quickly.

When compared to Q2 2024, the median Days on Market increased by 10 days, which is typical for this time of year. Summer is when the market moves the fastest, and by fall, things begin to slow down.

That’s not necessarily a bad thing—it just means the frantic pace of the summer months is winding down. Sellers should be mindful that homes may take a bit longer to sell as the year progresses, and it might require more realistic pricing or flexibility to close deals in a market that is starting to balance out.

New Listings

There were 2,885 new listings in Salt Lake County in Q3 2024, a decrease of 3.3% compared to Q3 2023. This decline indicates that fewer properties are being offered for sale, potentially due to sellers waiting for more favorable market conditions or are hesitant due to high mortgage rates.

Fewer homes coming onto the market means tighter inventory, which can support higher prices but also creates more competition among buyers. The comparison to Q2 2024 is even more, with new listings down 11.2%.

This seasonal slowdown is typical, as many sellers aim to list their homes during the busier summer months. However, the sharp decline could indicate that some homeowners are opting to stay put, possibly waiting out the current market conditions before listing. For buyers, this means fewer options to choose from, which could lead to more competition for the available homes and potentially push prices higher in the coming months.

Mortgage Rates

As of October 10, 2024, the average 30-year FRM rate was 6.32%, reflecting the largest one-week increase since April. This jump came after a stronger-than-expected September jobs report, which pushed rates up. While higher rates make buying a home more expensive, they’re also a reflection of the economy’s underlying strength, which should help support a healthy housing market moving forward.

Mortgage rates remained elevated, causing buyers to think carefully before jumping into the market. But, it's worth noting that the Federal Reserve did cut the Fed Funds rate in September, which indirectly helped ease some of the upward pressure on mortgage rates. Although this didn’t lead to a dramatic drop, it did provide some relief in an otherwise challenging rate environment.

Buyers may be feeling the pinch, but sellers should still find plenty of demand for well-priced homes, especially as inventory remains low. With election year uncertainties on the horizon, it’s possible we’ll see continued caution from both buyers and sellers. But despite the higher rates, Salt Lake's housing market remains resilient, and the fundamental demand for homes in the area should keep things moving.

Final Thoughts

Salt Lake's market is shifting, but opportunities are still out there. Whether you're buying or selling, now's the time to stay ahead of the game. Got questions or need some advice? Reach out—let's chat!