BUSINESS + ECONOMY

Home sales down, home prices up to start 2019

Jan 10, 2019, 3:16 PM
home sales down, home prices up, construction...
Getty Images

SALT LAKE CITY — Home sales are down slightly, while home prices are up at the start of 2019. And with housing permits up 8.4 percent over last year nationwide, that means more construction is coming.

Utah needs it, according to Abby Osborne with the Salt Lake Chamber of Commerce.

“For the first time in 40 years, we have more household formations than housing units. So we have a gap,” Osborne says. “We have a 54,000 shortage. It’s the old adage of supply and demand. We have intense demand, and not enough supply in the market.”

That supply and demand issue is behind the rising prices of housing. The median home value in Utah is almost $321,000. As a result, University of Utah Finance Professor Scott Schaeffer says traditional building is no longer enough.

“Nobody wants a big development built by them, but on the other hand, nobody wants to be priced out of a neighborhood,” Schaeffer says.

Zions Bank Senior Economist Robert Spendlove agrees.

“The affordability of housing is becoming a real problem,” he says.

Local leaders say the inventory is tight. In many cases, homes are only on the market for about a month. It could tick up more in the spring, but DMBA Financial Planner Shane Stewart says Utah is unique, in that it doesn’t experience the same booms or crashes that other places tend to get.

“Housing’s very – extremely cyclical, in that it gets very high and then it tapers off and goes down,” Stewart says. “We’ve been very high recently, and so it’s natural for it to slow down. Local experts are saying, ‘[Utah will have] a slow down, sure,’ but they’re pretty optimistic about the coming next couple of years.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

savings system right on the money...
Mark Jones

Economists are worried of a recession in 2023, financial expert weighs in

Many economists are fearing a recession in 2023 despite the U.S. economy ending last year better than expected.
1 day ago
A new service called Cottonwood Connect could address parking problems at the ski resorts in Big an...
Kate Davis and Simone Seikaly

Cottonwood Connect offers a new way to get up Cottonwood Canyons

The goal is to fill gaps left when UTA limited ski bus service. The shuttle will run Thursday through Sunday through mid-April.
1 day ago
The U.S. economy expanded at a 2.9% annual pace from October through December, ending 2022 with mom...
PAUL WISEMAN AP Economics Writer

US economy slowed but still grew at 2.9% rate last quarter

Most economists think the economy will slow further in the current quarter and slide into at least a mild recession by midyear.
1 day ago
About 87% of Tuesday's US flight cancellations are Southwest, according to flight tracking website ...
Pete Muntean and Greg Wallace, CNN

US Transportation Dept. investigating Southwest holiday travel meltdown

The US Transportation Department said it is in the early stages of an investigation into the Southwest Airlines holiday travel meltdown in December.
1 day ago
PayPal...
Curt Gresseth

Banks to launch app to compete with Apple Pay and Venmo

Banks are launching a new app for online money transfers that customers can trust to protect their finances.
2 days ago
Founded in Salt Lake City Beans & Brews Coffeehouse was recognized as a top franchise in Entreprene...
Waverly Golden

Beans & Brews Coffeehouse named a top franchise

Founded in Salt Lake City Beans & Brews Coffeehouse was recognized as a top franchise in Entrepreneur's Franchise 500 this year.
3 days ago

Sponsored Articles

Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...
Macey's

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
Home sales down, home prices up to start 2019