Double-Digit Rise in Q3 Home Prices

Home prices in Salt Lake County showed double-digit gains in this year’s third quarter, according to the Salt Lake Board of Realtors.

For the July-August-September period, the median single-family home price in Salt Lake County increased to $218,000, up 11 percent compared to a median price of $197,000 in the third quarter 2011. The third quarter marked the second consecutive quarterly price increase in Salt Lake County (home prices in the second quarter increased 6 percent year-over-year.) It was the first time in five years that home prices increased in a third quarter.

“Salt Lake City ranks among the top 25 major U.S. cities showing the biggest home-price increases,” said Donna Pozzuoli, president of the Salt Lake Board of Realtors. “In fact, this year is the first time in five years Salt Lake home prices have made a comeback.”

Some ZIP codes experiencing the biggest percent increases in Q3 median home prices included:

• 84123 (Kearns) Up 21 percent at $208,500.
• 84124 (Holladay) Up 17 percent at $295,000.
• 84109 (Canyon Rim) Up 13 percent at $284,900.
• 84093 (Sandy) Up 12 percent at $306,950.
• 84081 (West Jordan) Up 11 percent at $227,000.

Pozzuoli added that the recent price increases are the result of low inventory levels. In the third quarter there were 3,938 homes listed for sale in Salt Lake County. It was the lowest inventory level (for a third quarter) since 1997 when 2,838 homes were listed for sale.

Although a majority of cities across the Wasatch Front saw home prices increase, there were a handful that experienced price declines including: Alpine (84004) down 7 percent; Provo (84601) down 5 percent; and Riverton (84065) down 2 percent.

The number of single-family homes sold in Salt Lake County in the third quarter reached 2,982 sales, a 12 percent increase compared to 2,655 home sales during the same period last year. Single-family homes in the third quarter were on the market for an average of 81 days before being sold, down from 120 days in last year’s third quarter.

Condominium sales in the third quarter showed impressive sales gains with 621 units sold, a 29 percent rise compared to 483 units sold last year at this time. The median price of condos sold increased to $145,000, nearly unchanged from a median price of $144,800 last year at the same time.