HOUSING + HOMELESSNESS

New home sales keep rising

Jul 10, 2023, 1:15 PM

New home sale prices rising...

Dave & Dujanovic discuss new home sale prices rising Photo: Getty Images

SALT LAKE CITY — Interest rates are finally decreasing, but new homebuyers might find it difficult to find a new home as a new report shows new home sales continue rising this year.

According to the U.S. Department of Housing and Urban Development’s latest report, the number of new home sales rose for the third time in a row in May. Going up 12.2% in April and up 20% over the last year.

The average sales price of new houses sold in the country on May 2023 was $487,300.

Heather Groom, a licensed realtor at KW Westfield spoke to Dave and Dujanovic to discuss if Utah was also seeing similar trends in new home sales rising.

Interest rates

In the past few years, we got too comfortable with 2% and 3% interest rates, but Groom said when looking at the bigger picture, interest rates are not too high.

“Even though we may not like 6%, it’s not historically high. Back in the day, there were 18% interest rates that our parents had.”

Last year, the market slowed down when interest rates took a spike, and people began to wait to purchase a home. Groom said home buyers are now starting to get back into the market expecting that interest rates will drop possibly next year.

“What we’re seeing is definitely home sales are coming back, they’re coming back strong… We’ve got a lot of people that now who are starting to Google and say, hey, where’s a good place for me to move? Or what’s a business-friendly state? Utah has historically, in the last two years, been winning all these awards.”

New home sales

Utah is seeing a lot of demand for growth, with many new construction house projects all over the state. According to Groom, people are drawn to new homes because they also see it as an investment.

“Millennials waited to purchase for a number of years and now kind of these younger generations that are starting to say, okay, I want my own place.”

There are many programs to help first-time homebuyers, and with the increased options in new builds, like condos and townhomes, Groom said it is a great time for many. People also like that there is less risk of repairs or issues happening with newer construction homes.

Second-time homebuyers, on the other hand, can’t really justify moving into something bigger.

“I’m a little bit more concerned about this kind of second time or middle market where they aren’t, they’re not able to really afford the payment because the interest rate is now up,” Groom said.

Looking into the future, Groom believes Utah will continue to grow, “I think the secret is out. We’re not one of the best-kept secrets anymore, and that’s what I’m hearing from even my buyers that are moving here from out of state.”

Related:

We want to hear from you.

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

Housing + Homelessness

Davis County learned over the weekend that the temporary Davis County warming center it was using i...

Bryanna Willis

Davis County warming center changes location due to early building demolition

A Davis County warming center has changed its location after the city got word that the building it was originally using is set for an early demolition.

6 days ago

A "For Rent" sign is attached to a fence at a home in West Valley City, Utah on Monday, July 10, 20...

Randall Jeppesen

Rent bill sputters out in Utah Legislature

The Utah Rental Housing Association opposed the bill, saying the sponsor hadn't taken their concerns into account.

7 days ago

ground is broken on a weber county development for starter homes...

Britt Johnson

Gov. Cox’s starter home goal may face roadblocks, builder says

One Utah builder said Gov. Spencer Cox's goal of building 35,000 new starter homes over the next few years is possible but not easy.

15 days ago

FILE - The Federal Trade Commission building stands in Washington, Dec. 8, 2024. (AP Photo/Jose Lui...

Allessandra Harris Gurr

FTC lawsuit could bring funds to Utah renters

The Federal Trade Commission and the state of Colorado filed a lawsuit against Greystar Management Cooperation.

15 days ago

A "For Rent" sign is attached to a fence at a home in West Valley City, Utah on Monday, July 10, 20...

Allessandra Harris Gurr

Salt Lake City ranked one of the most affordable metros for renters

Rent is "affordable" if it makes up less than 30% of the renter's income, according to Redfin.

19 days ago

Unsheltered people gather at St. Mark's Episcopal Cathedral in Salt Lake City to keep warm on Monda...

Allessandra Harris Gurr

Cities in Utah County asked for donations to warming centers

The Utah County Winter Response Task Force is asking for voluntary funds from cities to help maintain their warming centers.

19 days ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

New home sales keep rising