Salt Lake median home price nears record high

Median home prices in the Salt Lake metro spiked again this summer, approaching 2022's record high costs.

By the numbers: The median price reached $549,000 in July, the highest since peaking at $560,000 in May 2022, according to Redfin data .

What we're watching: Whether falling mortgage rates tied to September's interest rate cut cause home prices to rise or fall.

One one hand, lower rates could free up some of Utah's housing. Homeowners here have some of the lowest rates in the nation , with about three-quarters paying less than 4% for a 30-year fixed mortgage.

• If they upsize or downsize while rates are high, they lose that advantage — so they've been locked in place while rates have stayed above 6% for the past two years, driving down the housing supply.
• If falling rates produce a bigger supply, prices should go down.

On the other hand, high mortgage rates have held back buyers, too.

• If lower rates bring a surge in demand, that could drive prices up .

Catch up quick: Prices began to rise sharply this year after the market seemingly plateaued last year.

Between the lines: The interest rate cuts could also encourage developers to build more, relieving pressure on the housing supply and keeping prices from rising further.

• A legislative report last year found Utah needed about 28,000 new housing units a year to keep pace with the state's growing population.