Housing market: Utah, Idaho see more inventory as prices stifle buyers

as it will be Homebuyers are being turned off or priced by climbing Mortgage ratesThe housing market is cooling, which has led to an increase in the housing stock.

As a result, Utah’s main metro area in Salt Lake City was one of the largest housing markets in the state that saw the largest increase in inventory year-over-year last month.

This is according to the latest numbers from RE/MAX, which released a file National Housing Market Report May Friday.

In numbers: Salt Lake City saw a 110.8% change in housing stock on an annual basis starting in May 2021. The only other metro area that saw a larger increase in inventory was another housing market that exploded during the pandemic: Coeur d’Alene, Idaho. There, inventory for the month rose 111.9% year-on-year in May, according to RE/MAX.

  • May 2022 inventory supply in Salt Lake City was 0.9, up from 0.4. This number is the total number of residential properties offered for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending listings) during the month.
  • Closed home sales numbers are also down 9.7% in Salt Lake City compared to this time last year, but are up 5.1% since April.
  • In Salt Lake City, the median home sale price is still over half a million. The average sales price in the region was $551,413 in May, up 22.5% year over year.

So while inventory has seen a boost with slow sales, that doesn’t mean there are suddenly a lot of homes to buy. The housing shortage continues in Utah, the market remains extremely tight, competition remains fierce and prices remain as high as ever.

In Utah, a spike in mortgage rates in April led to a push Increase average monthly mortgage payments by about $1,000up from about $1,629 in April 2021 to $2,256 last month, an increase of 56%.

That was before The latest 0.75% increase in the Federal Reserve It announced Wednesday, the largest single rise since 1994. As a result, the average 30-year fixed-rate mortgage rate exceeded 6%, its highest level since before the 2008 financial crisis, up from just 3% at the start of the year.

Expect housing experts here Higher rates will slow down the Utah market From the madness of two years – but that Doesn’t mean the bubble is about to burst Home prices are about to fall.

Experts keep reminding us that Utah — and the nation — still has a problem housing shortage That contributed in large part to house price increases that only accelerated amid the frenzy of home hunger that erupted amid the COVID-19 pandemic as many Americans, released through remote work, reassess their lives and decide to sell, buy or move.

What is happening to the US housing market: Although May is usually one of the busiest months for home sales, home sales across the US were 8.5% lower than in May 2021, RE/MAX reported. However, sales are still up 5.8% compared to April of this year.

Inventory is growing slightly – May was the second month in a row that US housing stock has risen this year. May is also the first month this year for the highest stock levels compared to 2021.

  • May closed with a 16.3% increase in the number of homes for sale compared to April of this year, and a 2.2% increase from May 2021. The supply of months inventory increased from 0.8 in April to 0.9 in May. However, that’s still lower than it was a year ago, when the stock was 1.0, RE/MAX reported.

“The decline in home sales is not entirely unexpected given the high mortgage rate environment, but the gains in inventory are welcome news for buyers who are now beginning to see more listings entering the market as they search for their home,” said Nick Bailey, President and CEO. RE/MAX Corporation in a prepared statement on Friday.

“Options in multi-family and single-family housing were not available just a few months ago. Affordability remains a concern, but homebuyers are regaining some long-overdue control,” Bailey said.

Homebuyers may have a little more inventory to choose from, but prices – you guessed it – are still on the rise.

  • The median US home sales price of $439,000 grew 1.2% compared to April of $425,000, and was 13.2% higher than the median price of $380,000 in May 2021.

Are offers still more than a question? Yes, homes are still sold in excess of asking prices.

  • The average near-list price ratio in the US was 103% in May, which means homes sold 3% more than asking price. However, this is slightly lower than last month, when the average near-list price ratio was 104%, but slightly higher than this time last year, when the ratio was 102% in May 2021.

How fast do homes sell? Across the US, homes spent an average of 23 days on the market in May. They sold three days faster last month, but also two days faster than they were selling in May of last year.