BUSINESS

Home prices increase in Salt Lake City during the pandemic

Jul 14, 2020, 11:54 AM | Updated: Feb 2, 2021, 7:41 am
buy home prices 2020 millennials...
File Photo: Daniel Acker/Bloomberg/Getty

SALT LAKE CITY, Utah — Buyers always want the best deal they can get when purchasing a new home.  And sellers always want the highest price they can get.  But the pandemic appears to be widening the gap on home prices in Utah.

When the coronavirus first shut down businesses and activity across the country, many sellers took their homes off the market.  Francesca Ortegren, data scientist with Clever Real Estate, says that led to more buyers than available homes and kept prices from falling.

home sales prices

More than 14% of available homes were pending in early May, compared to only 5% by mid-June. Source(s): Clever Real Estate calculations of Redfin.com data

Then, in mid-May, as Utah began re-opening from coronavirus restrictions, home sellers began relisting at prices $30,000 higher, on average, than before the pandemic, which led to fewer buyers making offers.

Only 5% of homes on the market in the Salt Lake City/Provo/Orem metro area went under contract in June.  That’s down from nearly fifteen percent in mid-May.

This trend is reversed throughout much of the rest of the nation.  Where there are fewer houses and more buyers, driving up the percentage of homes sold.

“As a second wave of shutdowns is happening,” said Ortegren “I think we’re going to see a similar pattern moving forward.”

Some cities will begin to see lower home sales and others will increase.  Right now, the Salt Lake Metro area has the second biggest drop in home sales of all cities nationwide. That puts the market just behind Tulsa, Oklahoma.

Ortegren said “expect to see many more people pull their homes off the market, especially in places like Arizona, Texas and Florida where coronovirus cases are rising.”

 

Today’s Top Stories

Business

draper shooting police...
Mark Jones

Party ban becomes permanent for Airbnb

Airbnb announced this week that it is placing permanent ban on disruptive parties. In April, two people died in a shooting at an Airbnb in Draper.
3 days ago
In this undated photo released by Toyota Motor Corp., its bZ4X vehicle is shown during an online pr...
YURI KAGEYAMA AP Business Writer

Toyota recalls electric car for faulty wheel that may detach

The "bz" in the recalled model's name, as well as others in the works, stands for a "beyond zero" series, including sport-utility vehicles of all sizes, pickup trucks and sportscars, according to Toyota.
9 days ago
A model wears a creation as part of the Giorgio Armani men's Spring Summer 2023 collection presente...
COLLEEN BARRY

Gucci unveils ‘HaHaHa’ collaboration with Harry Styles

Gucci has teamed up with Harry Styles for a between-season collection that infuses tailoring with adolescent joy. The collection is titled “HaHaHa.”
13 days ago
A now hiring sign in an Arby's window.; the Utah employment summary for May showed a slight slowing...
Amie Schaeffer

May’s Utah employment report showing signs of inflation impact

The employment rate in Utah remains steady but may be showing signs of inflation's impact, according to the state's May employment summary.
16 days ago
Attic fire in Cowabunga Bay building....
Mark Jones

Cowabunga Bay Water Park set to reopen Thursday after fire last weekend

Following a building fire last weekend, Draper's Cowabunga Bay Water Park is scheduled to reopen to the public on Thursday.
18 days ago
Utah airbnb rentals rising interest rates affecting millennial home buyers...
Dan Bammes

One realtor sees “signs of hope” in Utah housing market

With home listings up and home sales down, one Utah realtor is encouraged about the future of the Utah housing market, leading to what she calls "signs of hope."
19 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.
Home prices increase in Salt Lake City during the pandemic