That’s according to RE/MAX’s October National Housing Report, which surveyed 53 metropolitan areas across the nation. Of those 53, the report shows that the overall number of home sales across the country was down 13.5% from last month and 30.7% from October last year.
“October revealed a very different housing market than a year ago, with 30.7% fewer closings, 36.8% more homes for sale and the average home taking almost a week longer to sell , 35 days on the market,” the report said.
As a result, the national median home selling price fell 0.3% to $399,000 from $400,000 in September. This is the third consecutive month of price declines.
“The historic pace and magnitude of interest rate hikes have created a reset and softened the real estate landscape as expected,” said Nick Bailey, president and CEO of RE/MAX, in a prepared statement. “Under these conditions, homebuyers should be able to consider multiple properties instead of fighting over one. For many buyers, it’s less about the effective interest rate right now, and more about affording the down payment and monthly mortgage payments, and whether the property fits their needs.
Salt Lake City Real Estate Market: Where it’s at
Of the 53 markets RE/MAX surveyed, Salt Lake City stands out on multiple metrics. It had the largest year-over-year decline in closed transactions. It was also among the top five markets with the largest increase in days in market and months of inventory supply.
Utah — and other western states including Idaho — have been inundated with homebuyers during the pandemic housing frenzy. Freed from remote work and enticed by quality-of-life opportunities, including plentiful outdoor recreation at relatively more affordable prices than large cities, many buyers have looked to the West. For fast-growing states like Utah and Idaho, this made an already simmering housing market red-hot.
But now, the days of low lending rates — some months as low as 3% — are over as the Federal Reserve continues to battle record inflation with aggressive rate hikes. The result has been a dramatic correction in the housing market, with areas in the West slowing faster and more dramatically than other markets across the nation.
Sales drop: Salt Lake City had the largest decline No. 1 in home sales, with a 48.3% year-over-year decline in closed transactions, according to RE/MAX. In October, the metro area had 903 transactions, down from 1,747 a year ago when Utah’s housing market was buzzing.
Las Vegas was second with a 45.3% year-over-year decline in closed transactions, from 4,005 in October of 2021 to 1,947 in October of this year. San Diego finished third, down 42%. Portland saw a decline of 39.8%. Phoenix sales decreased 39.3%.
No metropolitan area experienced a year-over-year percentage increase in sales in October, RE/MAX noted.
Days on the market: According to RE/MAX, Salt Lake City was also one of the top five metropolitan areas to experience the largest year-over-year increase in days of availability in the market. Days on the market is the number of days between when a home is first listed for sale and when a sales contract is signed.
Nationwide, the average days on the market for homes sold in October 2022 were 35, up one day from the average in September 2022 and up six days from the average in October 2021.
Salt Lake City ranked fourth with the largest year-over-year increase in days on the market, with 41 days in October, up from 23 days in October 2021. That’s an increase of nearly 77 %.
Tampa was the metro with the largest year-over-year change in market days, with 42 days in October compared to 18 this time last year, a change of more than 130%. Denver ranked second, with 32 days on the market in October, up from 15 in 2021, an increase of nearly 119%. Orlando ranked third, up almost 102%. After Salt Lake City, Las Vegas ranked fifth, up 75.5%.
Months supply: Salt Lake City has also seen a staggering increase in monthly inventory supply, ranking second in the nation for seeing the largest year-over-year percentage change.
In October, Salt Lake City had 3.9 months of supply, up from 0.7 in 2021. That’s an increase of nearly 425% year over year.
Only Raleigh, North Carolina saw a larger percentage increase, with 2.9 months of inventory supply in October, up from 0.5% in October 2021, an increase of more than 462%.
Bozeman, Montana ranked third, with 5.9 months of supply in October, down from 1.2 in 2021, an increase of more than 401%. Las Vegas ranked fourth, with 4.9 months’ supply in October, up from 1.2 in 2021, an increase of nearly 330%. Coeur d’Alene, Idaho completed top five supplies 4.2 months in October, up from 1.1 in 2021, an increase of more than 291%.