Effects of Overpriced Homes in a Slow Market

WASATCH FRONT HOME SECOND QUARTER REPORT

Sales of single-family homes in Salt Lake County fell 9 percent in the second quarter (year-over-year) to 3,298 units sold, down from 3,626 units sold in the second quarter of 2013, according to the Salt Lake Board of Realtors®.

In the first six months of 2014 home sales dropped 7 percent compared to the first half of 2013. Other Wasatch Front counties that experienced falling home sales included: Davis County (down 9 percent); and Utah County (down 6 percent).

“Lower invertory and over priced homes have sent many home buyers back on the fence wating for the market to adjust. Some buyers have been totally priced out of the market. Sluggish market conditions are starting to effect  home prices. Where home price increases are coming to a quick halt, with an increase of  less than 2 percent in the second quarter. The Market is begging to adjust. Says Marty Gale, Principal Broker for Utah Realty Source."  

According to The Salt Lake Board of Realtors® Home sales fell the most in Salt Lake County cities including: Draper, down 14 percent; Herriman, down 21 percent; Magna, down 16 percent; Riverton, down 10 percent; Sandy (84092) down 17 percent; South Jordan, down 12 percent; and Sugar House (84105) down 10 percent. In the second quarter the median home price increased to $254,000, a 2 percent rise compared to a median price of $249,900 in the second quarter of 2013. Sales of condominiums in Salt Lake County climbed to 827 in the second quarter, an increase of 3 percent compared to 802 sales in the second quarter of 2013. During the same period, the median condo price in Salt Lake County climbed to $174,900, up 3 percent compared to a median price of $170,000. New listings increased to 6,584 homes in the second quarter, up 1 percent compared to 6,489 new listings a year ago.

Source:  Salt Lake Board of Realtors®