COVID-19 and low interest rates creating bidding wars in Utah housing market

Business
Homes near completion at C.W. Farms, an Ivory Homes development in Magna, on Wednesday, July 29, 2020. The Salt Lake City metro area is the third-most competitive housing market in the nation, according to a July ranking by Redfin, behind only Boston and San Diego. Robert Spendlove, Zions Bank senior economist, and Mike Gould, mortgage division manager for Zions Bancorporation, talked about the current state of and outlook for Utah's housing market during a press conference at the new subdivision.

Homes near completion at C.W. Farms, an Ivory Homes development in Magna, on Wednesday, July 29, 2020. The Salt Lake City metro area is the third-most competitive housing market in the nation, according to a July ranking by Redfin, behind only Boston and San Diego. Robert Spendlove, Zions Bank senior economist, and Mike Gould, mortgage division manager for Zions Bancorporation, talked about the current state of and outlook for Utah’s housing market during a press conference at the new subdivision. | Steve Griffin, Deseret News

MAGNA — As if the Utah housing market wasn’t hot already hot, the coronavirus pandemic and falling interest rates have only added fuel to the fire as the competition for properties continues to rise along the Wasatch Front.

According to a July ranking by Redfin, the Salt Lake City metro area has become the country’s third-most competitive housing market, due in large part to an increasing number of prospective buyers vying for a decreasing supply of properties.

This year, approximately half as many homes are on the market for sale as there were at this time last year, explained Robert Spendlove, senior economist for Zions Bank, resulting in a highly competitive marketplace in May and June. The Salt Lake City metro area saw 64% of offers produce bidding wars last month, trailing only Boston at 72% and San Diego 66%, he noted.

Steve Griffin, Deseret News
Crews work on home exteriors at C.W. Farms, an Ivory Homes development in Magna, on Wednesday, July 29, 2020. The Salt Lake City metro area is the third-most competitive housing market in the nation, according to a July ranking by Redfin, behind only Boston and San Diego. Robert Spendlove, Zions Bank senior economist, and Mike Gould, mortgage division manager for Zions Bancorporation, talked about the current state of and outlook for Utah’s housing market during a press conference at the new subdivision.

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Speaking at a news conference in Magna, Spendlove said the last few months have seen historic changes in the local economy since the outbreak began.

“The impacts have been dramatic and they’ve been severe. One of the things we couldn’t have predicted and we still are having to struggle predicting is the economic impact of the coronavirus and of COVID-19 on the housing market,” he said. “For instance, as the pandemic began in March, the Salt Lake metro area saw the sharpest decrease in the nation in overall listings — falling 47% year over year.”

“So what that means is that there is now intense competition for existing homes that are for sale, and that competition continues to drive up home prices,” he added.

Steve Griffin, Deseret News
Robert Spendlove, Zions Bank senior economist, right, and Mike Gould, mortgage division manager for Zions Bancorporation, report on the current state of and outlook for Utah’s housing market during a press conference at C.W. Farms, an Ivory Homes development in Magna, on Wednesday, July 29, 2020. The Salt Lake …read more

Source:: Deseret News – Business News

      

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