As Q1 of 2021 came to an end, our market analysis and on-the-ground experience painted a real clear picture of what’s in store for the rest of the year: this dynamic housing market is here to stay.
Although this is on par with what we predicted 2021 might look like after the whirlwind ending of 2020, but something is now very different. What we had been previously calling ‘trends’ have turned into our ‘new normal.’
Salt Lake City Housing Market – Year/Year Market Stats for Single Family Homes, March 2021
- At 947 units sold this past month, we saw an increase of 2%
- Median sales prices increased compared to last year, up 22% to $500,000 in 2021
- The median price per square foot increased 27% to $205
- Homes spent a median of 5 days on market which is down from 12 days in March 2020
- There is a 0.38 months supply of inventory on the market
In just one year, the median sales price in Salt Lake for single family homes went from $409,000 to $500,000. That’s almost a $100,000 increase. Of that, $34,500 was the amount of increase from just last month – February’s median sales price was $465,500. And given what we’ve seen with our own clients in the last few weeks – the price increase will be even more dramatic next month.
Total transactions, however, was about the same, and that is reflective of our current inventory levels. Which is of course one of the main driving factors behind today’s prices. Along with increased building and material costs, big stock market gains and lots of cash for some, more buyers than ever before with Millennials entering the market, and a really strong local economy, housing prices continue to trend upwards.
Looking at Q1 as a whole, we see the same trends driving this exciting and active housing market.
Park City Housing Market – Year/Year Market Stats for Single Family Homes, March 2021
- At 72 units sold this month, we saw an increase of 140% from March 2020
- Median sales prices increased compared to last year, up 38% to $2,150,000 in 2021
- The median price per square foot increased by 66% to $630 this year
- Homes spent a median of just 4 days on market down 94% from March 2020
- 1.7 months supply of inventory on the market
Quarterly analysis of the Park City market shows big gains in prices and a more dramatic increase in homes sold, as compared to Salt Lake City. Their inventory levels are tighter than before, and homes are selling more quickly than before, but the available inventory of homes is not as constrained at Salt Lake.
We always want to remind readers that the Park City market is much smaller than Salt Lake City in terms of transactions, but has a much bigger variance in terms of sales price. So we do sometimes see big swings in our numbers month-month. However, median sales prices have skyrocketed in Park City too – $1,552,000 to $2,150,000 in just one year. So for those of us deep in the trenches right now, this ‘current’ dynamic feels more long term. This may very well be what our housing market looks like for the foreseeable future.
The Takeaways
Prices have increased substantially across Salt Lake City and Park City on a quarterly basis. At the same time, both markets have seen the number of units sold increase while the inventory of houses has decreased.
Buyers remain eager to find a home in either Salt Lake City and Park City. And with inventory dropping as quickly as the number of days on market, it isn’t just a bidding war for buyers anymore, but a time crunch too.
Hopes of ‘riding out’ this hyper-active real estate market are not advisable — while things may slow down much later on, this historic market is looking more like a long-term trend that will continue to force us to adapt and evolve in 2021.
For buyers, that means re-strategizing your entire approach to purchasing a home in Utah. For sellers, that means coping with the speed and strength of this hectic market and having fierce representation.
Whether you’re a buyer or a seller in today’s market, our best advice (as always) is to get local real estate guidance from qualified, market-immersed real estate professionals. Our Park City and Salt Lake City housing market expertise is always available to you.
If you’re interested in selling, buying, or investing, reach out to your local real estate experts today. Contact us here to start a discussion. We look forward to hearing from you!
*Note — all statistical information in this post has been referenced from utahrealestate.com, Domus Analytics, and both the Salt Lake Board of Realtors and the Park City Board of Realtors.
Become a Utah Insider Today
Stay up to date with everything happening in the Utah market.
