What’s Up with Real Estate?
National news and local views for the week ending Friday, October 20, 2023
Responding to very strong retail sales figures, the bond market took another dive, and average 30-year mortgage rates consequently moved above 8%. The slowdown in transaction volumes will likely continue, but there are signs that home prices are beginning to drift lower.
National Real Estate News
Here we are at 8%
A blowout retail sales figure spooked the bond market, pushing 10-yr treasury yields to 4.97% and average 30-yr mortgage rates above 8% for the first time since October 2000. After increasing by 327 basis points (+3.27%) in 2022, average 30-yr mortgage rates have now risen an additional 154 basis points (+1.54%) in 2023.
Below 4 million
September existing home sales (homes with a previous owner) fell 2% month-over-month and 15% year-over-year to an annualized pace of 3.96 million units. The median sales price dropped 3.1% month-over-month to $394,300, but was still up 2.8% year-over-year. With mortgage rates continuing to rise in October, the big slowdown in transaction volume is likely to continue.
Construction shifts
The boom in multi-family construction (buildings with >5 units) during 2021-2022 has resulted in nearly 1 million multi-family units being currently under construction. This should put pressure on rental rates, particularly in the South region. But if you look at new permits to build over the last few months, two-thirds of them are for single-family homes.
Local Market Trends
As of Friday, October 20, 2023
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Clearfield, UT |
$492,000
0%
|
72
-0.4%
|
3 |
78
0.8%
|
| Farmington, UT |
$699,005
0.1%
|
52
0%
|
3 |
51
0.2%
|
| Layton, UT |
$599,900
0%
|
107
0%
|
12 |
47
0%
|
| North Salt Lake, UT |
$630,000
0.1%
|
36
0.1%
|
1 |
35
-0.1%
|
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) from Sep. to Oct. 2023..png)
