Breaking into the housing market has become an out-of-reach dream for many Americans looking to own property. “The U.S. housing market has gotten so expensive that income would have to jump 55% to make buying ‘affordable,’” per Fortune.
Although not exceptionally good news, a report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development discovered that so far in 2024, new home sales have risen, but less than expected.
New home sales in January 2024:
- New homes sold: 661,000.
- New homes on the market: 456,000.
- Median sales price: $420,700.
“While home sales remain sizably lower than a couple of years ago, January’s monthly gain is the start of more supply and demand,” NAR Chief Economist Lawrence Yun told the National Association of Realtors. “Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.”
As of Feb. 22, Freddie Mac reported that the United States average 30-year fixed-rate mortgage is 6.9%, and the 15-year fixed rate is set at 6.29%. With mortgage rates moving at an upward trend, home sales could be expected to stay moderate in the coming months, according to Reuters.
“New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. They, however, can be volatile on a month-to-month basis. Sales rose 1.8% on a year-on-year basis in January,” Reuters added. “Monthly sales soared 72.0% in the Northeast and surged 38.7% in the West. They rose 7.7% in the Midwest. Sales in the densely populated South plunged 15.6% to the lowest level since September 2022.”
Housing sales in Utah
As of October 2023, Forbes Home reported that Utah was ranked as the eighth state in the country for its expensive average home prices.
“In January 2024, home prices in Utah were up 2.8% compared to last year, selling for a median price of $524,900,” according to Redfin. “On average, the number of homes sold was up 12.4% year over year and there were 2,201 homes sold in January this year, up 1,966 homes sold in January last year. The median days on the market was 60 days, down 10 year over year.”
The number of newly-listed homes in the beehive state was up 16.5% year-over-year, with a reported 3,371 homes.
Top five cities in Utah with rising sales prices, per Redfin:
- Lehi, Utah.
- Logan, Utah.
- St. George, Utah.
- Sandy, Utah.
- Magna, Utah.
“In the West, existing-home sales elevated 4.3% from a month ago to an annual rate of 730,000 in January and grew 2.8% from one year earlier. The median price in the West was $572,100, up 6.3% from January 2023,” the NAR reported.
“More listings will help Americans move,” said NAR President Kevin Sears, broker-partner of Sears Real Estate in Springfield, Massachusetts, per NAR. “That’s why NAR has pushed for the passage of H.R. 1321 – The More Homes on the Market Act — which would lower the tax hit on home sales and bring additional inventory to the market.”