Real Estate Market Update

Salt Lake City | February 2023

Good News! Home prices and sales both increased in February for Salt Lake and Summit County. While it is too soon to say the market has turned, the latest numbers are welcome news. Let’s get right into the data from the February Market Trends Report for Salt Lake with an eye towards the busy spring season.

February 2023, Detached Homes | Salt Lake County
– $560,000 Median Sales Price, a 4.97% increase from last month.
– $635,000 Median List Price, up 2.42% from last month.
– 557 Homes Sold, up 30.75% from last month.
– Average DOM is 60
– 1,592 Homes for Sale, down 12% from last month.

We are still adjusting from last year’s peak. While the market improved in February, looking at year/year metrics are a bit more varied. This reflects the continued adjustment from the spring 2022 peak and transition into a more balanced – and ultimately healthier – real estate market. The absolutely bonkers pace and unhinged acceleration of the market in 2022 and 2021 was not sustainable nor normal.

Prices are actually up this month. This may seem surprising given the news, but the median sales price in February 2023 was $560,000, up from $533,500 last month. It is true that prices are down when compared to this time last year (right before the market peak), but they are also still up almost 20% when compared to February 2021. That’s a big net increase in two years.

Sales are up month/month but down year/year. The number of detached homes sold in Salt Lake County in February 2023 was 557, up 30.75% from 426 last month but -19.85% lower than 695 from February 2022. The February 2023 sales were at its lowest level compared to February 2022 and 2021. A lack of inventory continues to affect our local market despite recent changes in market conditions.

DOM is significantly higher. The average days on market (DOM) is the number of days a property is on the market before it sells. The DOM for February 2023 was 60 days, up 1.69% from the previous month. This is a whopping 185.71% higher than 21 days from February 2022 and is probably the most significant metric in terms of how the market feels right now. The pace is much, much different from the frenzied time of the last two years.

Inventory levels are down month/month but up year/year. The number of detached homes for sale in February 2023 was 1,592, down 12% from 1,809 from the previous month and 59.84% higher than 996 from February 2022. February 2023 inventory was at its highest level compared with February 2022 and 2021, which is welcome news. Inventory levels the last two years were at all time historic lows, and nowhere near where they should be for a balanced or healthy market. Buyers can actually shop and take the time to choose the home they want.

February 2023 compared with February 2022 and 2021. So to recap, we’ve got inventory levels and DOM at the highest they’ve been in two years. Sales at its lowest level in two years. And prices down from last year’s peak, but still up a remarkable 20% from exactly two years ago. A bit of a mixed bag, but if we were to make a prediction (as we often do), we think sales will really start to pick up soon as the market continues to settle into its new rhythm.

Sellers who price and market their home competitively will not have a problem finding a buyer this spring. Although a lot has changed over the past year, homes that are priced right are still selling. There are many buyers still out there. The change in market dynamics is just that – a change – and one that we all had to adjust to. But the market is still healthy and strong with buyers and sellers ready to make a move.

If it is time for you to plan your move, let’s connect. We know this market well and can help you make a smart move. Reach out to us today with a call or text to 801.949.9878.

Be sure to look through the entire February 2023 Market Trends Report for both Salt Lake and Summit County to see all the details.