Utah recorded its best year for home sales in 2020 with a staggering 19,202 homes sold in Salt Lake County, and though experts predicted even more market activity in 2021, sales have dwindled in the last half of the year, reports Deseret News. The likely culprits: record-high prices and low inventory.
Thousands of Americans relocated during the pandemic, and the West became a hotspot for newcomers seeking strong job markets and relatively affordable prices. What could have been a healthy economic boost caused by new migration quickly became an imbalanced market exacerbated by housing shortages and skyrocketing demand. In June 2021, median single-family home prices in Salt Lake County rose 31% year-over-year, surpassing the half-a-million mark at a striking $551,000.
While housing experts warn of a “severely imbalanced” housing market with regard to affordability, they don’t foresee prices dipping anytime soon.
“We’re not seeing prices drop. We’re still seeing price increases,” [Dave] Anderton said, even with the sales pacing behind 2020. “I think sales have slowed because prices are so high, it’s cut first-time buyers out of the market. And I also think that the inventory is still not where it should be.”