Salt Lake Realtor

President

Dawn Stevens

Presidio Real Estate (Canyons)

First Vice President

Claire Larson

Woodside Homes of Utah LLC

Second Vice President

Jodie Osofsky

Summit Sotheby's

Treasurer

Amy Gibbons

KW South Valley Keller Williams

Past President

Rob Ockey

Berkshire Hathaway

CEO

Curtis Bullock

DIRECTORS

Janice Smith

CB Realty (Union Heights)

Laura Fidler

Summit Sotheby's (Draper)

Jenni Barber Berkshire Hathaway

J. Scott Colemere Colemere Realty Assoc.

Chris Anderson Windermere Real Estate - Utah

Morelza Boratzuk RealtyPath (South Valley)

Michael Rowe CB Realty (SL-Sugarhouse)

Eric Santistevan Engel & Volkers (Holladay)

Hannah Cutler CB Realty (Union Heights)

Michael (Mo) Aller Equity RE (Advantage)

Linda Mascher Realtypath LLC (Advisors)

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton

Publisher Mills Publishing, Inc. www.millspub.com

President Dan Miller

Art Director Jackie Medina

Graphic Design

Ken Magleby

Patrick Witmer

Office Administrator

Cynthia Bell Snow

Sales Staff Paula Bell Dan Miller

Salt Lake Board: (801) 542-8840

e-mail: dave@saltlakeboard.com

Web Site: www.slrealtors.com

Embodying Kindness and Respect for All Realtors®

Recently, a Board of Directors member volunteered for a crucial task: making calls to our members to encourage investment in the Realtors® Political Action Committee (RPAC). This experience was revealing. My colleague reported that many responses were not just dismissive but also showed outright animosity towards RPAC and our association.

In a time when commissions and private property rights face increasing challenges, and the role of a Realtor® is under threat, it is alarming to see complacency and, in some cases, criticism among our members towards the association and RPAC.

What many members may not realize is that RPAC protects the real estate profession and promotes homeownership. Of every dollar donated, 70 cents stay in Utah to focus on state and local government, while the other 30 cents go to protect your interests at the national level. RPAC plays a critical role in supporting pro-Realtor® candidates across the political spectrum, ensuring donations go to candidates who support Realtor®-friendly policies. Local candidates are interviewed and vetted by fellow Realtors®.

For example, consider the stance of candidates on issues like the real estate transfer tax. Utah is one of the few states without this tax, which is levied in most states during the transfer of real estate ownership and can significantly increase transaction costs. The tax can even be imposed by local cities and counties.

Thanks to the persistent lobbying efforts of the Utah Association of Realtors® and the Salt Lake Board of Realtors®, Utah has successfully resisted multiple attempts to introduce such taxes at both the state and local levels.

It’s essential to understand that homeownership and professionalism transcend partisan boundaries. Our associations at all levels strive to advance the real estate profession and protect homeownership from burdensome taxes and regulations that could hinder the American Dream.

Someone once said, “You can choose to spend your finite time and energy complaining, or you can invest it in playing the game hard.” Are you part of the problem or are you making the real estate profession a better place? Do you collaborate effectively with others? This sentiment is particularly resonant now. Be kind to your fellow Realtors®. RPAC protects our careers. We must all strive to be part of the solution, contributing positively to a profession we are so passionately a part of.

and advertising content of the The Salt Lake REALTOR are not necessarily endorsed by the Salt Lake Board of REALTORS . However, advertisers do make publication of this magazine possible, so consideration of products and

Dawn Stevens President

Happenings In the News

New Home Sales Climb in December

Falling interest rates in the closing weeks of 2023 helped to bring buyers off the sidelines and provide a boost for new home sales, according to the National Association of Home Builders. Sales of newly built, single-family homes in December increased 8.0% to a 664,000 seasonally adjusted annual rate from an upwardly revised reading in November, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December is up 4.4% from a year earlier. On an annual basis, new home sales totaled 668,000 in 2023, up 4.2% from the 2022 figure of 641,000.

Salt Lake Home Sales at 12-Year Low

In 2023, Salt Lake County home sales fell to their lowest level in 12 years – a decline attributed to high mortgage rates, elevated home prices, and limited housing inventory, according to the Salt Lake Board of Realtors®. This downturn contrasts sharply with the all-time high reached in 2020, fueled by record-low mortgage rates and the Covid-19 pandemic, which stimulated migration from urban centers to suburban and rural areas. Nationally, the trend was similar. According to the National Association of Realtors® (NAR), existing-home sales in 2023 dropped to their lowest point since 1995. NAR Chief Economist Lawrence Yun stressed the importance of facilitating homeownership for current renters. “It requires economic and income growth and, most importantly, a steady buildup of home construction,” he said. The silver lining? Last year’s lackluster home sales will inevitably turn higher in the new year, according to Yun. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”

Nearly 13% of Salt Lake City metro millennials lived with their parents in 2022, Axios’ Erin Davis reports from the latest census figures.

That’s compared with the national average of 15.8%.

Why it matters: Younger people are increasingly struggling to swing high housing costs and are returning to their childhood bedrooms.

The number of Americans ages 25–34 living at home has jumped over 87% in the past two decades, according to census data.

What’s happening: Younger generations may be staying home to save on expenses like rent or for a future down payment, said Adina Dragos, research analyst at RentCafe, an apartment search website. More young adults may also choose to care for family members, Dragos told Axios.

Reality check: Plunging affordability hasn’t stopped some millennials from buying homes, often with family help. Nearly 55% of millennials (ages 27–42) owned a home in 2023, up from 52% in 2022, according to a new Redfin report.

Meanwhile, Gen Z’s (19–26) homeownership rate stagnated at just over 26%. What we’re watching: Those who move out might find rent is a lot more expensive than a few years ago, even as price increases slowed last year.

It’s one reason why renters are feeling badly about their finances, according to the Axios Vibes survey by the Harris Poll.

Image licensed by Ingram Image Alexandr Ivaschenko©/Adobe Stock

READY

As part of the legendary Berkshire Hathaway family of companies, we have the depth, strength and brand power to help grow your real estate business. Our network extends globally in reputation and strength. Locally, our company is the largest brokerage in Utah, ensuring that your property reaches a broad audience of real estate professionals and buyers. We are committed to providing you with the resources and support that will create greater success and enjoyment in your real estate career. So, talk with us at Berkshire Hathaway Utah Properties and let’s get you settled without ever settling for less

Salt Lake Housing Forecast Report: A Review and Forecast for the Salt Lake County Residential Real Estate Market

Salt Lake Housing Forecast Report: A Review and Forecast for the Salt Lake County Residen>al Real Estate Market

Despite experiencing the steepest two-year surge in housing prices on record from 2020 to 2022, Salt Lake County's housing market displayed a remarkable resilience against even modest declines, maintaining stable prices despite a decrease in home sales.

Despite experiencing the steepest two-year surge in housing prices on record from 2020 to 2022, Salt Lake County’s housing market displayed a remarkable resilience against even modest declines, maintaining stable prices despite a decrease in home sales.

By James Wood Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute

Prices Surprise in 2023

By James Wood Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute

With the highest mortgage rates since 2002 and worries about a recession, 2023 was bound to be a tough year for the housing market How severe would the housing correction be? Mark Zandi, a highly respected economist at Moody Analytics, predicted housing prices would fall 15% to 20% in “overvalued” markets.1 Salt Lake qualified as an overvalued market with the median sales price increasing by 40% in two years; jumping from $380,000 in 2020 to $530,000 in 2022, Table 1.

Prices Surprise in 2023

With the highest mortgage rates since 2002 and worries about a recession, 2023 was bound to be a tough year for the housing market. How severe would the housing correction be? Mark Zandi, a highly respected economist at Moody Analytics, predicted housing prices would fall 15% to 20% in “overvalued” markets.1 Salt Lake qualified as an overvalued market with the median sales price increasing by 40% in two years; jumping from $380,000 in 2020 to $530,000 in 2022, Table 1.

1

Table 1

Table 1

2017 $293,000 10.6%

2018 $320,000 9.2%

2019 $343,500 7.3%

2020 $380,000 10.6%

2021 $465,000 22.4%

2022 $530,000 14.0%

2023 $515,000 -2.8%

*Includes single-family homes, condominiums, townhomes, and twin homes.

Source: UtahRealEstate.com

Despite the most rapid two-year rise in housing prices ever (2020 to 2022), prices in Salt Lake County were surprisingly resistant to even a modest decline. Last year, prices declined by only 2.8%, falling from $530,00 in 2022 to $515,000 in 2023. A look at past price declines helps explain the stubborn price resistance in 2023. In the past 50 years of price history there have been only two periods of price declines, the 1980s and Great Recession (20082011), Figure 1.

Despite the most rapid two-year rise in housing prices ever (2020 to 2022), prices in Salt Lake County were surprisingly resistant to even a modest decline Last year, prices declined by only 2.8%, falling from $530,00 in 2022 to $515,000 in 2023. A look at past price declines helps explain the stubborn

Figure 1

Positive labor market conditions in 2022-2023 protected the residential real estate market from short sales and foreclosures, the main causes of falling housing prices in the Great Recession. For example, in 2009, the number of jobs in Salt Lake County declined by over 6%, a loss of 35,000 jobs, which in turn meant a loss of income and default on mortgage payments for some households. During the Great Recession forecloses and short sales accounted for 18% of home sales, over 2,000 of the 11,000 residential sales in 2011. This record level of foreclosures and short sales, driven by a shocking level of job loss and reduced household income during the Great Recession caused housing prices to fall for 16 consecutive quarters. No such downward pressure exists in today’s housing market. In 2023, only 57 of the 11,194 sales in Salt Lake County, about one-half of one percent, were foreclosures or short sales. Hence, Utah and Salt Lake County’s strong employment conditions helped prevented housing prices from any serious declines in 2023.

Increasing Likelihood of Modest Price Increase in 2024

sales. Hence, Utah and Salt Lake County’s strong employment conditions helped prevented housing prices from any serious declines in 2023.

Increasing Likelihood of Modest Price Increase in 2024

A comparison of prices on a year-over monthly basis indicates an uptick in the median sales price is likely in 2024. Over the last six months of 2023 the monthly price data show slight increases over prices in the same month previous year, Table 2. Partial monthly data for January 2024 show a continuation of the upward trend in the median sales price. Although prices look to be ticking up it will be many months before the monthly median sales price exceeds the May 2022 peak price of $565,300.

A comparison of prices on a year-over monthly basis indicates an uptick in the median sales price is likely in 2024. Over the last six months of 2023 the monthly price data show slight increases over prices in the same month previous year, Table 2. Partial monthly data for January 2024 show a continuation of the upward trend in the median sales price. Although prices look to be ticking up it will be many months before the monthly median sales price exceeds the May 2022 peak price of $565,300

*2023, year-over comparison through three quarters.

*2023, year-over comparison through three quarters.

Source: Federal Housing Finance Agency, all transactions index, estimated using sales price and appraisal data.

Table 2

Year-Over Comparison of Monthly Median Price of Home*

Salt Lake County

Year-Over Comparison of Monthly Median Price of Home* Salt Lake County

Month

January $501,000 $495,000 -1.2%

February $520,000 $500,000 -3.8%

March $540,000 $520,000 -3.7%

April $560,000 $500,000 -10.7%

May (peak monthly price) $565,300 $535,000 -5.4%

June $545,000 $525,000 -3.7%

July $526,000 $539,000 2.5%

August $525,000 $525,000 0.0%

September $523,750 $525,000 0.2%

Source: Federal Housing Finance Agency, all transactions index, estimated using sales price and appraisal data.

Both periods were marked by high rates of unemployment, above 6%, and either job losses or meager rates of job growth, less than 1% A far cry from job conditions in 2023. The 2023 unemployment rate in Salt Lake County was 2.57%, the second lowest annual estimate ever; only 2022 was lower In 2023 the number of jobs in the county hit 800,000 up 2.4%, an increase of 19,000 jobs from the previous year. A strong increase in the average wage was also recorded in 2023 of 5%, pushing the average wage in Salt Lake County to $70,175 This wage gain followed the record-breaking increase of 6.3% in 2022.

October $522,947 $530,000 1.3%

November $504,500 $510,000 1.1%

December $485,000 $495,000 2.1%

*Includes single-family homes, condominiums, townhomes, and twin homes.

Source: UtahRealEstate.com

Sales Continue to Slump

Sales Continue to Slump

ositive labor market conditions in 2022-2023 protected the residential real estate market from short sales and foreclosures, the main causes of falling housing prices in the Great Recession For example, in 2009, the number of jobs in Salt Lake County declined by over 6%, a loss of 35,000 jobs, which in turn meant a loss of income and default on mortgage payments for some households During the Great Recession forecloses and short sales accounted for 18% of home sales, over 2,000 of the 11,000 residential sales in 2011. This record level of foreclosures and short sales, driven by a shocking level of job loss and reduced household income during the Great Recession caused housing prices to fall for 16 consecutive quarters No such downward pressure exists in today’s housing market In 2023, only 57 of the 11,194 sales in Salt Lake County, about one -half of one percent, were foreclosures or short

Both periods were marked by high rates of unemployment, above 6%, and either job losses or meager rates of job growth, less than 1%. A far cry from job conditions in 2023. The 2023 unemployment rate in Salt Lake County was 2.57%, the second lowest annual estimate ever; only 2022 was lower. In 2023 the number of jobs in the county hit 800,000 up 2.4%, an increase of 19,000 jobs from the previous year. A strong increase in the average wage was also recorded in 2023 of 5%, pushing the average wage in Salt Lake County to $70,175. This wage gain followed the record-breaking increase of 6.3% in 2022.

While prices held firm in 2023 sales slumped to their lowest level since 2010. Residential real estate sales totaled 11,195 homes last year, down 15% from 2022 and 41% below the all-time high of 19,041 in 2020, Figure 2. The impact of higher mortgage rates took the greatest toll on sales in 2022 as rates increased from 3% to over 7% in less than 12 months. The rapid rise in rates caused

Table 2

Art_me2541©/Adobe Stock

Figure 1

Percent Change in Housing Price Index for Utah

Percent Change in Housing Price Index for Utah

Source: U.S. Bureau of Labor Statistics

Residential real estate sales have been much more sensitive to rising rates than prices And with rates expected to move lower in 2024, further declines in sales are unlikely thus leaving the 11,195 home sales in 2023 as the low point in sales for the current price cycle. Mortgage rate forecasts for 2024 rates trending toward 6% and dropping below 6% in 2025, which will help support higher levels sales.

residential sales to fall by 26%, 4,500 fewer sales than the previous year. In 2023, rates fluctuated in a narrower range, from 6% in February to a high of 7.8% in the last week of October. By year-end 2023 rates dropped to 7% and drifted even lower to 6.6% in January 2024.

Figure 2

Residential Real Estate Sales in Salt Lake County

Source: UtahRealEstate.com

Source: UtahRealEstate.com

toward 6% and dropping below 6% in 2025, which will help support higher levels of sales.

Table 3

Mortgage Rate Forecasts

Year-end 2024 2025

Source: U.S. News and World Report, January 8, 2024.

Fewer Listings Contribute to Slumping Sales

Fewer Listings Contribute to Slumping Sales

Sales in 2023 were lower, not only due to higher mortgage rates, but also to fewer listings entered.

Notice the yellow bars representing new listing entered in 2023, Figure 4. In the first 10 months of listings entered were lower than the previous three years. However, in November and December 2024, when mortgage rates declined listings increased, exceeding November and December of 2022

On a monthly average the number of listings entered statewide in 2020 was 4,745, in 2021 4,444, 2022 4,513, and in 2023 falling to 3,830.

The decline in rates follows positive news on inflation. The rate of inflation peaked in June 2022 at 9.1%, Figure 3. At the time many economists predicted high rates of inflation would persist over the next few years. They were wrong Inflation has fallen much faster than expected while avoiding a spike in unemployment and loss of jobs, again surprising many experts. The rate of inflation was below 4% from June to December Consequently, the Federal Reserve has signaled rate reductions are likely in 2024. The core inflation rate (excluding energy and food) fell primarily due to lower prices for goods (autos, apparel, appliances, household furnishing, etc.). In addition, falling gasoline prices, the deceleration in rent increases, and relief from supply chain bottlenecks have contributed to lower rates of inflation

The decline in rates follows positive news on inflation. The rate of inflation peaked in June 2022 at 9.1%, Figure 3. At the time many economists predicted high rates of inflation would persist over the next few years. They were wrong. Inflation has fallen much faster than expected while avoiding a spike in unemployment and loss of jobs, again surprising many experts. The rate of inflation was below 4% from June to December. Consequently, the Federal Reserve has signaled rate reductions are likely in 2024. The core inflation rate (excluding energy and food) fell primarily due to lower prices for goods (autos, apparel, appliances, household furnishing, etc.). In addition, falling gasoline prices, the deceleration in rent increases, and relief from supply chain bottlenecks have contributed to lower rates of inflation.

Figure 3

Year-Over Monthly Percent Change in the Consumer Price Index (U.S. city average, all urban consumers)

Source: U.S. Bureau of Labor Statistics.

Source: U.S. Bureau of Labor Statistics

Sales in 2023 were lower, not only due to higher mortgage rates, but also to fewer listings entered. Notice the yellow bars representing new listing entered in 2023, Figure 4. In the first 10 months of 2023 listings entered were lower than the previous three years. However, in November and December of 2024, when mortgage rates declined listings increased, exceeding November and December of 2022. On a monthly average the number of listings entered statewide in 2020 was 4,745, in 2021 4,444, in 2022 4,513, and in 2023 falling to 3,830.

Figure 4

Figure 4

Number of Listings Entered in Utah by Month

Number of Listings Entered in Utah by Month

Source: UtahRealEstate.com

Source: UtahRealEstate.com

An Offsetting Factor: Housing Affordability

An Offsetting Factor: Housing Affordability

While the housing market will benefit in 2024 from lower mortgage rates and increased listings, affordability will continue to be an offsetting factor preventing a sales recovery to the pre -pandemic level of 18,000 sales (2016-2020). An often-used measure of severity of housing affordability is the median multiple, which is a price -to-income ratio; the median house price divided by the median household income. Table 4 shows the affordability rating of the median multiple for Salt Lake County

From 2013 to 2016 the median multiple in Salt Lake County was under 4.0. Housing was moderately unaffordable. But by 2017 the ratio moved up to the 4.1 to 5.0 range, a seriously unaffordable rating. And by 2021, the acceleration in housing prices pushed the median multiple to 5.8 in 2021 and 2022

With the absence of a price increase in 2023 the ratio dropped slightly to 5.4, still a severely unaffordable rating for Salt Lake County, Table 5

Table 4

Residential real estate sales have been much more sensitive to rising rates than prices. And with rates expected to move lower in 2024, further declines in sales are unlikely thus leaving the 11,195 home sales in 2023 as the low point in sales for the current price cycle. Mortgage rate forecasts for 2024 show rates trending

Residential real estate sales have been much more sensitive to rising rates than prices And with rates expected to move lower in 2024, further declines in sales are unlikely thus leaving the 11,195 home sales in 2023 as the low point in sales for the current price cycle. Mortgage rate forecasts for 2024 show rates trending toward 6% and dropping below 6% in 2025, which will help support higher levels of sales.

Salt Lake County Median Multiple Affordability Rating, 2023

Housing Aordability Median Multiple Rating Ratio

Affordable ≤3.0

Moderately Unaffordable 3.1 to 4.0

Seriously Unaffordable 4.1 to 5.0

While the housing market will benefit in 2024 from lower mortgage rates and increased listings, affordability will continue to be an offsetting factor preventing a sales recovery to the pre-pandemic level of 18,000 sales (2016-2020). An often-used measure of severity of housing affordability is the median multiple, which is a price-to-income ratio; the median house price divided by the median household income. Table 4 shows the affordability rating of the median multiple for Salt Lake County. From 2013 to 2016 the median multiple in Salt Lake County was under 4.0. Housing was moderately unaffordable. But by 2017 the ratio moved up to the 4.1 to 5.0 range, a seriously unaffordable rating. And by 2021, the acceleration in housing prices pushed the median multiple to 5.8 in 2021 and 2022. With the

Severely Unaffordable 5.1 & over

Source: Demographia International Housing Affordability

Figure 2

Residential Real Estate Sales in Salt Lake County

Figure 3 Year-Over Monthly Percent Change in the Consumer Price Index (U.S. city average, all urban consumers)

Table 3

Mortgage Rate Forecasts

Table 3 Mortgage Rate Forecasts

Source: UtahRealEstate.com

setting Factor

the housing market will bene ordability will continue to be an o 18,000 sales multiple, which is a price household income. Table 4 shows the affordability rating of the median multiple for Salt Lake County 2013 to 2016 the median multiple in Salt Lake County was under 4.0. Housing was moderately ordable. But by 2017 the ratio moved up to the 4.1 to 5.0 range, a seriously unaffordable rating. 2021, the acceleration in housing prices pushed the median multiple to 5.8 in 2021 and 2022 the absence of a price increase in 2023 the ratio dropped slightly to 5.4, still a severely ordable rating for Salt Lake County, Table 5.

absence of a price increase in 2023 the ratio dropped slightly to 5.4, still a severely unaffordable rating for Salt Lake County, Table 5.

“In 2024, the median sales price for all types of homes will increase by 3% to $530,500 from $515,000 in 2023, while the median price of a single-family home will increase by 2.4% to $600,000. Condominiums, townhomes, and twin homes will see a 5% increase to $436,000.” James Wood

Salt

Table 4

Table 4

Salt Lake County Median Multiple Affordability Rating, 2023

Tables 6-7 illustrate the impact of affordability on homeownership opportunities. The income required to finance the median priced single-family home in Salt Lake County is $170,000. Even more, the income required for a more affordable median priced condominium is $125,000.

Tables

Table 5

Median

the

Jared©/Adobe Stock

“While the housing market will benefit in 2024 from lower mortgage rates and increased listings, affordability will continue to be an offsetting factor preventing a sales recovery to the pre-pandemic level of 18,000 sales (2016-2020).”

James Wood

forecast from the Utah Department of Workforce Services for 2024 is 1.8%, an increase of 32,000 jobs. Excluding the pandemic year of 2020, this year will have the slowest rate of job growth since 2010. The labor shortage will continue with a low unemployment rate of 2.9%.

Inflation – The rate of inflation will continue to decline to an expected 2.2% by year-end 2024.

Mortgage rate - The mortgage rate will range between 6.0% 6.5% and by 2025 dip into the 5.5% to 6.0% range.

Housing prices - The median sales price for all types of homes (single-family, condominium, townhome and twin home) will increase by 3% to $530,500 from $515,000 in 2023, while the median price of a single-family home will increase by 2.4% to $600,000 and condominiums, townhomes, and twin homes will see a 5% increase to $436,000, thus benefitting from their affordability.

Of course, half of all homes sold fall below the median. Do these lower priced homes provide a realistic home ownership opportunity for most renters or first-time home buyers? Sales data for Salt Lake County show that 27% of homes sold in 2023 were priced from $400,00 to $500,000 and another 15% were priced from $300,000 to $400,000. But even these lower priced homes require relatively high household income to qualify for homeownership. At current mortgage rates, a home priced at $300,000 would require an income of $90,000 to $100,000 Daunting income requirements for most first-time homebuyers and renters. Even homes priced well below the median would, in most cases, require two incomes in a household and several years’ experience in the job market.

What to Expect in 2024

Economic conditions - Expect slower job growth, but a recession in Utah is unlikely. The employment growth forecast from the Utah Department of Workforce Services for 2024 is 1.8%, an increase of 32,000 jobs. Excluding the pandemic year of 2020, this year will have the slowest rate of job growth since 2010. The labor shortage will continue with a low unemployment rate of 2.9%

Residential sales – Residential sales will increase from this cycle’s low point of 11,195 in 2023. More favorable rates, improving consumer sentiment, and increased listings will push sales in Salt Lake County up 16% to around 13,000 homes.

Residential sales – Residential sales will increase from this cycle’s low point of 11,195 in 2023. More favorable rates, improving consumer sentiment, and increased listings will push sales in Salt Lake County up 16% to around 13,000 homes.

Inflation – The rate of inflation will continue to decline to an expected 2.2% by year-end 2024.

Mortgage rate - The mortgage rate will range between 6.0% 6.5% and by 2025 dip into the 5.5% to 6.0% range.

Of course, half of all homes sold fall below the median. Do these lower priced homes provide a realistic home ownership opportunity for most renters or first-time home buyers? Sales data for Salt Lake County show that 27% of homes sold in 2023 were priced from $400,00 to $500,000 and another 15% were priced from $300,000 to $400,000. But even these lower priced homes require relatively high household income to qualify for homeownership. At current mortgage rates, a home priced at $300,000 would require an income of $90,000 to $100,000. Daunting income requirements for most firsttime homebuyers and renters. Even homes priced well below the median would, in most cases, require two incomes in a household and several years’ experience in the job market.

Housing prices - The median sales price for all types of homes (single -family, condominium, townhome and twin home) will increase by 3% to $530,500 from $515,000 in 2023, while the median price of a single -family home will increase by 2.4% to $600,000 and condominiums, townhomes, and twin

will see a 5% increase to $436,000, thus benefitting from their affordability.

What to Expect in 2024

Economic conditions - Expect slower job growth, but a recession in Utah is unlikely. The employment growth

20232024% Chg.

Inset Quotes: “In 2024, the median sales price for all types of homes will increase by 3% to $530,500

Table 7

Mortgage Payment Calculations for the Median Price Home in Salt Lake County, Q2022 and January 2024 (condominium, twin home, townhome)

Table 8

Forecast of Economic Indicators for 2024

Frank Munch©/Adobe Stock

Table 7

Mortgage Payment Calculations for the Median Price Home in Salt Lake County, Q2022 and January 2024 (condominium, twin home,

7 Ways Real Estate Pros Can Keep More of Their Money

Learn from a CPA how to take advantage of every single tax break you’re owed as a small business owner.

Real estate pros almost never take advantage of all the tax breaks they’re owed, said CPA Greg Antipoff, who is known as “The Real Estate Accountant.” Most of the time, financial misunderstanding and a lack of a system to manage business expenses prevents practitioners from saving more money at tax time, he added. But Antipoff is determined to arm agents and brokers with the knowledge and skill to keep more of their earnings. He’ll provide tax tips tailored to real estate pros during NAR’s 2024 Tax Summit, a four-part webinar series held every Wednesday in February by the Center for Realtor® Financial Wellness. Here are seven important items Antipoff will cover during the summit that will help you save money at tax time.

1. Tracking expenses. You need a system to track your expenses, but it doesn’t have to be complex.

Simply using a separate, dedicated bank account to deposit all commission checks and pay all expenses can get you 90% of the way there. This helps ensure you aren’t forgetting about items you’ve already spent money on. The Tax Summit will cover a simple system to make sure agents aren’t missing any deductions.

2. What’s deductible? The tax code favors small business owners over employees, so real estate professionals—especially rookies—must reframe their mindset when it comes to taxes. For example, employees can’t deduct things items such as their home office, vehicle, meals, travel, business conferences and education—but small business owners can. The Tax Summit will cover all the items you could potentially write off.

3. Bonus depreciation on investment property. Pay attention to the phaseout of bonus depreciation as it relates to investing in real estate. Bonus depreciation allows you to deduct a larger portion of the purchase price of a property in the first year versus spreading the deduction out over three or four decades. The bonus depreciation limit for 2023 was 80%, and it is now 60% for 2024. Each year, this will continue to decrease by 20% until is completely phased out. This matters to real estate pros, who rely heavily on property investment to build wealth and retirement savings. The Tax Summit will cover tax advantages for agents investing in real estate.

4. Business entity requirements. Real estate pros who operate as an LLC or S-Corp can enjoy further tax benefits. But FinCEN now requires business entities to report certain information under the Beneficial Ownership Information Reporting rule, or BOI reporting. While the reporting itself is straightforward, failing to complete this by the

due date can be costly; we’re talking $500 a day. Check with an attorney or accountant to make sure you complete this filing in a timely manner. The Tax Summit will cover tax implications for legal business entities.

5. Making an item or activity tax-deductible. There’s no universal list of tax deductions for real estate pros. What is tax-deductible for one agent may not be for another. It all depends on how the taxable item is used. Instead of focusing on a list of things that you can write off, figure out how a particular expenditure can lead to generating more money in our business. This is figured out by asking, “How do I make it tax deductible?” Use a 3D printer as an example: What if you were to 3D print an ornament of your client’s actual home—not some random house—and gave it to them as a gift? Your client is likely to share this ornament with their sphere, which could lead to referral business. Now, it’s tax-deductible. The Tax Summit will cover how to capture every tax break you’re owed.

6. Requirements for home office deductions. The home office deduction is a great way to write off a portion of the expenses associated with your home. But keep in mind that your home office needs to be a dedicated space to take advantage of tax breaks. It cannot be your kitchen table where you also eat dinner or have family game night. Also, having desk space at your brokerage’s office doesn’t prevent you from taking a home office deduction. In fact, having a small office at your brokerage can increase your automotive deduction. The Tax Summit will cover how to get more out of your tax deductions.

7. Investing in retirement. From the start, agents should be allocating 10% of their commission checks to investing. These funds can be used to invest in things like stocks, bonds, and mutual funds, or you can let these funds build up to be used as a down payment on an investment property. The Tax Summit will cover retirement funding for real estate pros.

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New NAR Campaign Brings REALTOR® Expertise to Life

The sixth iteration of the award-winning “That’s Who We R” campaign has rolled out brand-new digital ads, along with the arrival of season four of “First-Time Buyer.”

The National Association of Realtors® is doubling down on its efforts to demonstrate Realtor® value to consumers. NAR’s “That’s Who We R” campaign, now in its sixth year, dropped brand-new digital ads in January, while the fourth season of the NAR-produced docuseries “First-Time Buyer” debuted on Hulu and at FirstTimeBuyer.realtor.

Across visual, audio and digital storytelling, NAR’s “That’s Who We R” campaign highlights what sets Realtors® apart in a crowded real estate industry: commitment to the Realtor® Code of Ethics, access to specialized resources and, above all, unmatched expertise in the markets and communities in which they live and work.

“This campaign is hyperfocused on the value that agents who are Realtors® bring to consumers across the country,” said Nicola Esposito, 2024 chair of NAR’s Consumer Communications Committee. “We’re accentuating Realtor® expertise by bringing to life genuine moments of connection with our clients, even in the midst of what can be a stressful and unknown process. As a Realtor®, it is important to me that NAR’s campaign demonstrate the authentic partnership we have with buyer and seller clients.”

The new creative highlights various points along the path to buying or selling a home. Leveraging a diverse set of characters, locations and scenarios, the spots reinforce the constancy of agents who are Realtors® at

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the heart of each transaction. In each scenario, viewers will see how agents who are Realtors® are committed to putting their clients first, to the closing table and beyond.

“There’s no substitute for the expertise, market knowledge and commitment to ethics that define what it means to be a Realtor®,” said NAR President Kevin Sears. “I’m proud of the work that our 1.5 million members are doing every day to serve their clients— whether they’re working with expanding families or couples looking to downsize, first-time buyers or entrepreneurs looking to grow their business. This campaign spotlights those stories.”

This year’s advertising campaign will be seen across modern touch points, including broadcast and streaming platforms, online and terrestrial audio, social media and custom content partnerships.

“In today’s fast-evolving real estate landscape, buyers and sellers need professionalism and expertise more than ever,” said NAR Interim CEO Nykia Wright. “Agents who are Realtors® deliver unmatched value

every step of the way, working to make the dream of homeownership a reality for clients across the country.” The campaign’s focus on the value that agents who are Realtors® provide is supplemented by the fourth season of “First-Time Buyer,” which was filmed in Chicago, Oklahoma City and Tulsa. NAR’s unscripted television series follows individuals and families through their first homebuying journeys, highlighting the indispensable role of Realtors® in helping these buyers secure their dream homes. Through practical examples, the series demystifies complex concepts like HUD and VA loans, strategies for building equity and the unique intricacies of condo purchases.

“NAR is committed to sharing an authentic, relatable portrait of Realtor® value with a broad consumer audience, and our ‘That’s Who We R’ campaign does just that,” said NAR Chief Marketing and Communications Officer Suzanne Bouhia. “‘First-Time Buyer’ goes one step deeper, layering valuable education into entertaining storytelling. It’s a resource for anyone hoping to purchase their first home.”

Iriana Shiyan©/Adobe

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Younger Buyers Want Baby Boomers to Update Their Homes

Millennials are worried they’ll inherit properties in need of major renovations and repairs, which could further hamper affordability.

By Melissa Dittmann Tracey

Young move-up home buyers are growing increasingly worried that baby boomers, many of whom are staying put in their current home, won’t update their properties and will pass down costly renovations and repairs to the next generation of owners, according to a new study from Morning Consult and Leaf Home, a national home improvement company.

Many baby boomers are choosing not to downsize, with 68% saying they’ve lived in their homes for 30 years or more, the study shows. Many in that group admit

according to a new study from Redfin. But many young families need extra space: Millennials with children comprise about a quarter of three-bedroom-plus rentals in the U.S.—the largest share compared to any other generation.

Some millennials are waiting out the housing market for more larger homes that can accommodate their growing families. Ten percent of millennials say baby boomers are staying in their homes too long and should free up housing for them, the Morning Consult and Leaf Home survey finds.

they’ve never done renovations or replaced major appliances—and they don’t have any plans to, either. Researchers say this could become a nightmare scenario for millennials, who may inherit or purchase these “time capsule” homes. Younger buyers’ budgets already are stretched thin by high home prices and mortgage rates. It’s difficult for many to add pricey renovations to their homebuying budget.

“The housing market is caught in a generational tugof-war,” said Leaf Home CEO Jon Bostock. “Boomers will soon face aging-in-place hurdles, while millennials will face the surprise of homes in need of major updates. With an aging and ignored inventory of homes available in the next decade, we may see a crisis that will overwhelm the home improvement industry and strain the budgets of inheriting millennials, impacting the housing market.”

Taking More Than Their Fair Share?

Empty-nesters own twice as many large homes as millennials with children, 28% versus 14%, respectively,

But baby boomers, like many other homeowners, have little incentive to sell. Some may not want to give up the ultralow mortgage rate they got in recent years while others own their home outright and are sitting on record amounts of equity.

Housing Experts: Crisis Looming

The aging housing stock in America is an issue that experts have been flagging for years. Economists are concerned about the impact aging homes could have on a housing market already struggling with a historic inventory shortage.

The median age of an owner-occupied house is 40 years old, according to the American Community Survey. Slightly less than half of the owner-occupied homes were built prior to 1980; about 35% were built prior to 1970. As homes age, their components need to be replaced or repaired to keep them sellable. `A bloated, aging inventory of neglected homes could be the next big headache for the housing market, researchers warn.

Melissa Dittmann Tracey is a contributing editor for Realtor® Magazine. Reprinted from Realtor® Magazine Online, January 2024, with permission of the National Association of Realtors®. Copyright 2024. All rights reserved.

Source: “2024 Generational Divide in Homeownership Report,” Leaf Home/Morning Consult

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December 2023

Will Home Sales Rise in 2024?

Homes sales (all housing types) in Salt Lake County were up 3% to 816 units sold in December 2023, compared to 790 units sold in December 2022. The uptick in sales was welcome news. Home sales in the county have been falling each month year over year since June 2021 (except for October 2023). In the spring of 2022, the decrease in home sales accelerated as the Federal Reserve started raising short-term interest rates to combat inflation.

In 2023, Salt Lake County home sales fell to their lowest level in 12 years – a decline attributed to high mortgage rates, elevated home prices, and limited housing inventory. This downturn contrasts sharply with the all-time high reached in 2020, fueled by record-low mortgage rates and the Covid-19 pandemic, which stimulated migration from urban centers to suburban and rural areas. Nationally, the trend was similar. According to the National Association of Realtors® (NAR), existing-home sales in 2023 dropped to their lowest point since 1995. NAR Chief Economist Lawrence Yun stressed the importance of facilitating homeownership for current renters. “It requires economic and income growth and, most importantly, a steady buildup of home construction ,” he said.

The median sold price of all housing types in Salt Lake County increased to $489,425 in December, up nearly 2% from $480,000 in December 2022. Single-family home prices climbed to $560,000, up 3% compared to $542,500 a year ago. Prices rose to $415,000 for multi-family homes, up nearly 4% year over year.

In December, properties in Salt Lake County typically remained on the market for 35 days, down from 40 days in the same month of 2022. New listings increased by 9% year-over-year to 752 properties. However, under contract listings fell by 11% to 1,017 units, compared to 1,143 in December 2022.

Nationally, total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – decreased 1% from November to a seasonally adjusted annual rate of 3.78 million in December. Year-over-year, sales declined 6.2% (down from 4.03 million in December 2022), according to the National Association of Realtors®.

“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” Yun said. “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”

In the U.S., first-time buyers were responsible for 29% of sales in December, down from 31% in November 2023 and December 2022. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 20234 – found that the annual share of first-time buyers was 32%.

All-cash sales accounted for 29% of transactions in December, up from 27% in November 2023 and 28% in December 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, down from 18% in November and identical to one year ago.

Distressed sales – foreclosures and short sales – represented 2% of sales in December, virtually unchanged from last month and the previous year, according to NAR.

“The latest month’s sales look to be the bottom before inevitably turning higher in the new year.”

Lawrence Yun

Chief Economist National Association of Realtors®

We're proud to celebrate alongside our Windermere agents who made the Top 500 Salt Lake Board of Realtors® in 2023.

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Lana Ames

Connie Elliott

Jim Bringhurst

Adam Frenza

Monica Draper

Casey Halliday

Abbey Drummond

Lori Hendry

Peter Clark

Jan Lowe

Cherie MajorAndrew McNeilTaylor PetersonScott Steadman

Laurann TurnerJulia UbertyLisa Woodbury