Utah Association of Realtors
Utah metro areas had some of the highest home price gains in the country at the end of 2021.
With home prices increasing more than 24% in the fourth quarter, Ogden-Clearfield and Salt Lake City ranked eighth and ninth on a top 10 list of U.S. metros with the highest yearly price gains.
In the Ogden-Clearfield metro area, the median sales price was $444,200 — up 24.7% from the fourth quarter 2020 median of $356,300. In Salt Lake, the median sales price was $505,700 — up 24.4% from $406,500 in 2020.
The data come from a National Association of Realtors report, which studied home price trends in 183 metro areas across the U.S. Of those markets, 67% experienced double-digit price appreciation. Nationally, the single-family median home price rose 14.6%.
“Homebuyers in the last quarter saw little relief as home prices continued to climb, albeit not as fast as earlier in the year,” said Lawrence Yun, NAR chief economist. “The increasing prices are indicative of a seller’s market, with an abundance of eager buyers and very limited supply.”
Metros in the Sunbelt and Mountain states had the highest yearly price gains. Along with Ogden and Salt Lake, neighboring metros of Phoenix (up 25.7%), Las Vegas (up 24.7%) and Boise (up 24.3%) were also on the top 10 list.
“The strength of price gains are associated with the strength of the local job market, but the escalating prices took a toll on home shoppers, compelling many to come up with extra cash, and forcing others to delay making a purchase altogether,” Yun said. “A number of families, especially would-be first-time buyers, are increasingly being forced out of the market, and this is why supply is critical to expanding homeownership opportunity.”
The rapidly rising prices are underscoring the need for more homes and greater affordability. According to the report, local families would need the following incomes to qualify for the median-priced home:
- 5% down payment: $87,572
- 10% down payment: $82,963
- 20% down payment: $73,745
- Salt Lake City
- 5% down payment: $99,696
- 10% down payment: $94,449
- 20% down payment $83,955
A separate report from the National Association of Home Builders also looked at current affordability trends, attributing a 10-year low on supply-chain bottlenecks and rising interest rates.
“Supply chain disruptions stemming from labor shortages to lumber to home appliances and other building materials are delaying construction times and contributing to higher home prices,” said NAHB Chairman Chuck Fowke. “Policymakers must focus on addressing these issues to help ease rising construction costs that are contributing to housing affordability headwinds.”
In Utah, the most affordable metro area is Ogden-Clearfield, according to the NAHB report. Based on incomes, housing prices and interest rates, 58.2% of homes sold in Ogden-Clearfield were considered affordable in the fourth quarter.
Here’s how affordability looked throughout Utah:
- Ogden-Clearfield: 58.2% of homes sold were affordable to families earning the median income of $90,900.
- Provo-Orem: 32.5% ofhomes sold were affordable to families earning the median income of $83,700.
- Salt Lake City: 48.3% of homes sold were affordable to families earning the median income of $92,900.
- St. George: 27.2% of homes sold were affordable to families earning the median income of $69,600.
While the market continues to be challenging for home buyers, there is some hope on the horizon.
“The good news is that home prices should begin to normalize later in 2022 as more homes come on the market,” Yun said.
To learn more about housing prices and conditions in your area, contact a local Realtor. A directory of Utah Realtors is available at UtahRealtors.com.