As the scramble for housing in the Wild West befallen, the Salt Lake City metropolitan area and its main real estate competitor, Boise, Idaho, have just topped another national record-breaking home price list.
Only the hot Boise market topped Salt Lake City for the largest percentage increase in median year-over-year selling prices, according to the latest RE / MAX National Housing report released Monday.
âThe secret is known about Boise,â said Callie Williams, agent for RE / MAX Elite Properties in Boise, in a prepared statement. âIt’s a great place to live, raise a family and enjoy the outdoors. Since COVID, we’ve seen a huge influx of buyers moving to Boise. The pandemic made people rethink their situation, and we quickly ran out of stocks, causing our prices to skyrocket. “
Boise’s median selling price rose 28.8%, from $ 369,990 in September 2020 to $ 476,587 in September 2021. Metropolitan Salt Lake City median selling price rose from $ 385,000 to $ 490,000 over the same period, an increase of 27.3%, according to the report.
Another western market, Phoenix, Arizona, ranked third in the country, with a median selling price of $ 411,000 in September, up from $ 330,000 in September 2020, an increase of 24.5%.
The Raleigh-Durham metropolitan area in North Carolina ranked fourth, with an increase of 20.8%. Tampa, Florida ranked fifth with a 19.8% increase.
The report comes after a chaotic 2020 shook the national housing market amid the COVID-19 pandemic, accelerating housing price hikes in already booming western regions like Utah and Idaho . In 2021, these price increases have been maintained and have only increased.
Earlier this month, new research from the University of Utah’s Kem C. Gardner Policy Institute also ranked Utah’s housing market as one of the hottest in the country, just behind the Idaho. The report, titled “The State of the State Housing Market,” found in the second quarter of 2021, home prices in Utah were up 28.3% from 2020, ranking second of the country for the percentage increase year over year. Idaho saw a staggering 37.1% increase.
With these record increases in house prices, the Utah researchers have also warned that Utah now faces a “serious imbalance” in its housing market, in the face of a growing affordability crisis. make matters worse, with more than half of Utah households now unable to afford the state’s median home price. .
For September’s ranking, RE / MAX used real estate data in 52 metropolitan areas across the country, including all residential types. Many of the larger metropolitan areas were represented in the survey, according to the report, and the company attempted to include at least one metro from each state.
Although the median selling price of the 52 metropolitan areas was down 1.1% from August of this year, it was up 12.5% ââfrom September 2020. No metropolitan area has experienced a decline. year-over-year median selling prices decline. In contrast, 31 metropolitan areas grew year over year by double-digit percentages, according to the report.
August’s slight drop in selling prices reflects seasonal norms in the housing market, as buying tapers as the colder months and the holiday season approach. Yet the figures show that the national housing market is maintaining “strong momentum,” the report says.
âThis was the second most active September for sales in 14 years, behind only 2020, which was an outlier in many ways,â said Nick Bailey, president of RE / MAX LLC, in a statement. press release prepared. Plus, the expected seasonal drop in sales from August to September was half of what it usually is, indicating that buyers and sellers are still on the move.
While the national real estate market is “strong,” Utah in particular “appears to be stronger and perhaps more sustainable than other markets,” said Josh Horner, of RE / MAX in Salt Lake City, highlighting the growth. constant demographic of Utah.
Over the past decade, Utah has continued to rank among the fastest growing states in the country, according to the US Census Bureau.
“Add that with low taxes, a favorable business climate and major projects like the $ 4 billion airport renovation, a 20,000 acre inland port and a brand new ski resort behind Deer. Valley, âHorner said. “Utah currently has a very sustainable economy and real estate market.”
However, as the market remains hot, home sales volume in the Salt Lake City metropolitan area is down 14.9%, placing Salt Lake City No. 3 in the country for markets with the largest decline in the year. ‘year-on-year transactions compared to September. 2020 to September 2021. Boise ranked No. 5 in the country with a 13.6% drop.
This drop in transactions could indicate some buyers are turning away from what has been a frustrating market, Horner said.
âThe number of offers received per property has decreased in recent months. We believe this decline is due to a segment of buyers who have stopped looking for homes right now because they just couldn’t compete, âsaid Horner.
âHowever, there are still buyers who can really compete with cash or high bids, investors and even institutional buyers,â he added. They may be a slightly smaller segment of buyers, but they are the more serious ones.
This means that prices are unlikely to fall even if the market cools slightly as the holidays approach.
âDemand for housing from local Utahns as well as out-of-state buyers remains strong,â said Horner. âWe have listed and sold 13 homes over the past few months in Sugarhouse and Park City, all of which were under contract in one to 20 days.â