SALT LAKE CITY (KUTV) — Many potential homebuyers in Utah are holding off on purchasing as they wait to see if the Federal Reserve cuts interest rates next month, which could lead to cheaper mortgages.

Although mortgage rates are on many people’s minds, Utah home prices are still rising, but at a slower pace, said Adam Kirkham, president of the Utah Association of Realtors.

“We are still seeing an increase, but it is a bit like inflation: It is going down,” he said.

Last year, home prices in Utah rose 3.8 percent, according to the Utah Association of Realtors.

Even if the Federal Reserve decides to cut interest rates, which could make mortgages more affordable, Kirkham said this would not necessarily lead to a decline in home prices.

Kirkham, a real estate agent with 25 years’ experience, said that while a fall in interest rates could make mortgages more affordable, it could also lead to higher property prices due to increased competition.

Currently, the average home price in Utah is $417,000, and in Salt Lake County it is even higher at over $500,000.

Kirkham also noted that condos and townhomes sell faster than detached single-family homes, largely due to lower prices.

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In Utah, homes priced between $300,000 and $500,000 sell the fastest.

“There is a good supply of homes in this price range, but frankly we need more,” Kirkham said. “The state, the governor and the Realtors Association have made efforts to create more entry-level homes.”

Despite efforts to increase housing supply, Utah continues to need more housing to meet the demand of its growing population.

For those considering buying a home, Kirkham offers this advice: “If you want to buy a home, do it at a time that is most convenient for you and don’t worry so much about when the market is right.”

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