SALT LAKE CITY (ABC4) – The Utah Association of Realtors released their June home sales report on Wednesday.
According to the report, the average cost of homes sold rose more than 30% last month to a new record high of $ 450,000.
The report explains that the reason for soaring home prices is not having enough homes for sale. The number of active listings remains well below what is needed to meet buyer demand and protect housing affordability.
Matt Ulrich is a partner at Ulrich Realtors. He says the Utahns will continue to see prices rise as long as the demand is there and buyers are willing to pay the money.
Currently, those looking to buy a home have to make multiple offers, some well above the asking price, to try and secure a home. According to the report, sellers receive an average of 103% of the original list price.
While this is great news for those putting their homes on the market, many potential buyers are frustrated.
“When you don’t win auctions or bids, it’s exhausting, it’s emotional, it’s a roller coaster. Even as an agent, you spend more time and effort helping buyers buy a home, ”Ulrich told ABC4.
“I’ve never seen people have to pay so much money over the purchase price to get a house,” says Richard Knell, branch manager at Synergy One Lending.
However, Knell explains that there are ways for mortgage executives to help buyers during this process.
“We have a ten-day closure, which allows people to come in and be approved in advance. That way, when they go out and make an offer, they can literally close in ten days or less… and it makes it easier for them to compete with cash buyers, ”says Knell.
According to the report, at the end of June, there were approximately 5,300 homes for sale in Utah. This is an all time high for this time of year, making it difficult to meet buyer demand and protect housing affordability.
“They don’t qualify… they have to sell assets, they try to sell their cars, downsize their vehicles, do their best to pay off their credit cards or other debts,” Knell explains.
Wednesday’s report said a family in Utah with the median household income had only 85% of the income needed to buy a home.
“I have buyers and people ask me all the time ‘should we wait… will the market change?’ the answer is we don’t believe it. Based on statistics and state economists, we’re going to see prices continue to rise because the demand is there. Our economy is good… it is a strong economy and the demand is there. There just isn’t enough housing available for the number of buyers who are here, ”Ulrich told ABC4.
Their advice to anyone looking to buy a home is to be patient and adjust your expectations, such as expanding the area in which you are looking for a home.