June Market Update
Real Insight From Julia and Kate

Do not panic about the housing market.
The numbers are not scary!

Salt Lake Area – May 2022 

Single Family Homes, Year/Year 

• $650,000 median sold price, up 22% from last year when it was $531,000 
• $261 median price per square foot, up 18% from last year 
• 955 units sold, which is a 6% decline from last year when there were 1,021 units sold 
• 6 median days on market, up from 5 last year 

Park City Area – May 2022 

Single Family Homes, Year/Year 

• $2,457,500 median sold price, up 27% from last year when it was $1,925,000
• $793 median price per square foot, up 65% from last year 
• 39 units sold, up 5% from last year
• 12 median days on market, up from 9 last year 

So what is going on with the housing market right now? What’s behind the numbers?

Well, the market is shifting. And change is always a bit uncomfortable. We are shifting to a more balanced market – which is ultimately a really good thing.

10 Things About Our Current Real Estate Market that We Want You to Know!

1- Sales have not declined.

2- Prices are not declining either. In fact, we were a little surprised to see that they increased 22% once again year-over-year, for Salt Lake, and 27% for the Park City Area. The unhinged rate of price appreciation we’ve seen the last two years is slowing. But prices are still rising overall, and they certainly haven’t collapsed.

3- Thankfully, inventory is rising. It may feel like there is suddenly a wave of homes being listed, but the market most certainly isn’t being flooded. In both Salt Lake and Park City, inventory continues to remain significantly below historic levels. For example, take a look at the number of residential properties available for sale (listed but no offer yet) in Salt Lake County on June 1st for the last few years.

2022: 1,294
2021:   610
2020: 1,885
2019: 2,620
2018: 2,160

4- Median Days on Market is just barely showing signs of change. In Salt Lake it has been stuck at 5 for more than a year, which in all reality, was zero. But for both markets it is still historically low. Homes priced appropriately and in desirable neighborhoods are still selling quickly, often with multiple offers.

5- The absorption rate (which is a measure of supply and demand) is changing, and this is great news. Inventory has been so lean the last two years we essentially had no supply of homes. With the increase in listings the rate is starting to change, but we have been so chronically underhoused in Utah for so long that we have a long way to go before there is any cause for alarm.

6- The rising interest rates are changing the market, but that’s by design. And a good thing. The rate of increase in home values the last two years was unsustainable and unhealthy. From May 2020 to May 2022 median home prices in Salt Lake County increased 59% percent, from $407,700 to $650,000. Although we may have become somewhat desensitized to these numbers, we all know it could not, and should not, go on indefinitely.

7- Negotiating the deal has returned. Buyers no longer need to waive every contingency, or offer non-refundable earnest money with every offer. This is wonderful news.

8- Buyers can now shop for homes, attend open houses and actually take a moment to really decide if the home is right for them.

9- Sellers have to adjust their expectations in terms of how they price and market their home. Pricing is nuanced again, and closely tied to recent sales of comparable homes. Pricing is no longer just based on market momentum. Sellers also have to really market their homes and hire agents (like us) who proactively work to bring buyers into their home. A yard sign and a quick listing on the MLS aren’t going to cut it anymore. Homes need to be clean, professionally photographed and expertly marketed in order to cause it to sell.

10- We are shifting to a more balanced real estate market. The market isn’t crumbling, collapsing or plunging into an abyss. Take a deep breath, focus on your needs and why you need to buy a new home, and move forward.

A balanced real estate market is really where the best agents (again, us!) show you what they’ve got and use it to help you. 

If you’re uninformed about the market you run the risk of leaving money on the table when you sell, and missing out on the home you really want to buy. Don’t let this happen to you.

Give us a call and let’s go over your options together! You’ll be glad you did.