Wasatch Front home sales increase, but prices fall again in second quarter

SALT LAKE CITY — It's the same story, just a different quarter.

The sales of single-family homes along the Wasatch Front rose in second quarter, but median sales prices continued to fall.

Data released by the Salt Lake Board of Realtors Thursday showed that sales climbed as much as 18.39 percent in Tooele County during the second three months of 2010 compared to the same period last year. However, the median sales price for single-family homes there fell 5.58 percent to $169,950.

Similar scenarios played out in Davis, Salt Lake, Utah and Weber counties.

Sales during the second quarter were virtually flat in Davis County, rising less than 1 percent, while the median sales price dropped more than 3 percent from 2009 to $210,000.

In Salt Lake County, sales increased nearly 8 percent, while the median sales price decreased more than 7 percent. Utah County sales rose 5.07 percent, with the median price falling 6.88 percent to $203,000.

Weber County sales for the period were up almost 8 percent, while median sales prices declined about 3 percent to $159,000.

Sales of condominiums in the second quarter in Salt Lake County were up 11.28 percent, but following the singe-family home trend, condo prices decreased 5.26 percent from last year to $162,000.

"We still are in a soft spot in terms of the broader economy and in terms of the housing market," said Kendall Oliphant, senior vice president at Thredgold Economic Associates.

The fact that the number of homes being sold is increasing is a positive sign for the real estate market, he added.

"It's supply and demand," he said. "As homes are taken off the market, there are fewer homes available to purchase, and the price tends to head up."

Oliphant said, "It's still clearly a buyer's market."

He noted that real estate interest rates are still at extremely low levels, and along with falling sales prices, are helping to drive the improving home sales numbers. Those factors, in conjunction with slowly rising employment figures, could eventually fuel an uptick in the overall real estate economy, he said.

"The combination of affordable prices and affordable financing is helping to move inventory," he said.

What happens in the future in the housing market will depend on what occurs with interest rates, Oliphant said.

"If interest rates stay low, then you can expect a lot of people to recognize the (opportunity to purchase a home at a more affordable price)," he said.

While the past three years have been historically unusual from an economic perspective, Oliphant described the most recent two quarters as "basic," economically speaking. And if the employment picture continues to gain momentum, it could bolster the area housing market.

"Conditions are combining to make it attractive for some of the (remaining) homes to sell," he said.

e-mail: jlee@desnews.com; rpalmer@desnews.com