The Most Shocking Housing Number We’ve Seen
Before we dive into last month’s numbers, we want to share something that we’ve all perhaps felt in the market, but haven’t actually seen in print anywhere… until today.
The median sold price for single family homes in Salt Lake County was $628,000 last month. Exactly two years ago at the end of March 2020, it was $410,000. That is a staggering 54% increase in just two years.
For condos in Salt Lake County the rate of increase is essentially the same, going from $244,000 in March 2020 to $381,000 in March of 2022, which is a 56% increase.
Of all the numbers we’ve come across in the last 25 years in real estate here in Utah, this might be the most shocking, and quite frankly, the most unexpected. What’s more, we would venture to say that there was absolutely nobody two years ago that forecasted anything close to a 54% increase in home values on the horizon here in Utah. We certainly didn’t!
So what does this mean for you? Well if you’re gearing up to sell this year, you’ll need to know precisely how much appreciation your personal home has enjoyed. Knowing this information will allow you to plan your next chapter. So reach out to us for an individualized assessment of your home, because as we all know, every neighborhood is different. Reach out to us now. Our counsel is complementary, accurate and reliable.
Now back to the numbers… Last month we speculated that we would likely see the amount of total sales start to increase and prices continuing their march upwards. Turns out, we were right. Here is where things ended up for March 2022 in Salt Lake City and Park City.
Salt Lake County – March 2022
Single Family Homes, Year/Year
- $628,000 median sold price, which is a 25% jump from last year when it was $500,000
- $250 median sold price per square foot, up 22% from last year
- 846 total units sold, which is a 11% decline from last year when there was 947 units sold
- 5 median days on market, which is exactly where we were last year
Looking at March 2022 compared to last month, the median sold price for single family homes in Salt Lake jumped 7.35%, from $585,000 to $628,000. Impressive. Total units sold also jumped from 677 to 846, which is a meaningful 25% increase.
The amount of active listings (homes that are on the market but have not yet accepted an offer) has been trending up in Salt Lake, ranging anywhere between 11-15% higher than the same time last year. For example, as of March 31, 2022 there were 586 active listings, and on March 31, 2021 there were 496, so that’s an 18% increase. Here in Salt Lake, I think all of us in the trenches would say there does seem to be a few more listings coming on this spring than last.
This also seems to be true for Park City. New listings increased 21% in March from the previous month, and are hovering only about 5% lower than this same time last year. Taking a look at what else is happening in Park City, we see similar declines year-over-year in sales but again, that’s a reflection of the lack of inventory. It is not a reflection of a lack of buyer demand. Moreover, January 2022 was the lowest month of inventory on record for Park City, so this clearly would affect sales.
Park City Area – March 2022
Single Family Homes, Year/Year
- $3,070,000 median sold price, up 42% from last year when it was $2,150,000
- $785 median sold price per square foot
- 42 units sold, down 41% from last year when there were 72 units sold
- 9 median days on market, up from 4 days last year
We recently read that Redfin released internal data showing the national demand for vacation homes dropped sharply in March, which was the second straight month a decline was recorded. According to them, the pandemic vacation-home boom may be finally coming to an end. I think we’d speculate that it is finally simmering down after two years of frenzied demand, which was acutely felt in our Park City market. But when you’re moving from a “frenzied demand” state to a “hot demand” state I’m not sure an active buyer would find the market that much easier to navigate. It is still slim pickings up in Park City in the 1M price point.
In other national news, both Zillow and Realtor.com recently published reports that right now is possibly the best all year in which to list your home. They base this on their own internal data and they aren’t necessarily wrong – spring is traditionally a hot time in real estate.
Of course we all saw the news that inflation just hit its highest mark since 1981. How much these ballooning costs and rising interest rates affect the rest of our spring housing market is a hotly debated topic everywhere.
For now, demand remains very strong here in Utah so it is a great time to sell. And if you’re a buyer, possibly hesitant to enter the market, don’t be! There are more listings, slightly fewer bidding wars, and lots of opportunity for you to find that perfect home.
Give us a call, text, email or swing by our office and let’s talk about what your needs are. We will protect your financial investment and help you make the most out of the purchase or sale of your home. Reach out to us today! 801.949.9878