The 3rd quarter 2018 housing statistics showed that median home prices increased an impressive 10.73% to stand at a new record high of $323,000. But even with these encouraging figures, there are signs of a slowdown in the appreciation. When compared to the previous quarter home prices have barely changed ($320,000), with the advent of rising interest rates putting the squeeze on homebuyers. Now don’t get me wrong this does not mean the housing market is crashing, it’s just a sign that we may be in more of a balanced market.
Another sign of a slowdown is the sudden increase in spec homes listed for sale. A spec home is a new construction home that was built without a contract to buy. For some time now, new home builders have found it hard to keep pace with demand, but now we are starting to see spec homes being listed on the MLS and buyer incentives being offered.
There are still certain areas of the market that remain very strong, especially in first time home buyer segment. In fact, it may be even more competitive in this area given that interest rate increases are reducing buying power, meaning that more people are seeking cheaper priced homes.
Single-family homes saw a 9.44% rise in the median sales price, to stand at $360000, but was up just $2000 on the 2nd quarter’s numbers.
Best Performing Single Family Home Zip Codes
Taylorsville/Murray 84123 up 16.53% $332,000
Holladay 84117 up 17.10% $562,089
Salt Lake City 84104 up 16.53% $233,000
The condo sales price was even stronger, with a 12.37% increase in the median sales price to $211,150. But again, this was only a marginal improvement over the 2nd quarters $209,633.
Best Performing Condo Zip Codes
Holladay 84124 up 45.64% $291,200
West Valley City 84119 up 24.87% $187,000
South Salt Lake 84115 up 26.56% $193,000
While there are some signs of home prices stalling, the market on a whole remained strong in the 3rd quarter. There is still a lack of inventory and the market for first time home buyers showed no sign of easing. In fact with rising interest rates, affordability for first-time buyers is becoming more of a problem.
For a complete list of prices by zip code please visit our Salt Lake County Home Prices page.