The Park City or Summit County homes on Zillow may not actually be for sale. File Photo: Daniel Acker/Bloomberg/Getty
SALT LAKE CITY — One of the reasons that the U.S. Federal Reserve raised a lending rate by three-quarters of a point this week was to correct an overpriced housing market, a home price “correction” that is already underway in Salt Lake City.
“What we need to do is get rates up to the point where we’re putting meaningful downward pressure on inflation,” said U.S. Federal Reserve chief Jerome Powell on Wednesday. CBS News reported it was the fifth increase this year and the third consecutive increase of 0.75%.
Market analysts say home prices have already dipped in Utah. A report from Zillow shows Salt Lake City home values fell more than 7% from May to August, 2022.
The new Zillow data also shows that western home markets that spiked earlier than the rest of the country, like Boise, Idaho, are also starting to calm down.
Economists say it should only be a matter of time before the rest of the country catches up with Utah’s housing market correction
The interest on money borrowed for a home, now around 6.25%, is the highest the rate has been since 2008.
Simone Seikaly contributed to this report.
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