Here is the newest Utah Real Estate Market Update for Salt Lake City and Park City from Julia and Kate Splan. We’ve packed a lot in this month — enjoy!
Salt Lake Area – June 2022
Single Family Homes, Year/Year
– $627,500 median sold price, up 14% from last year
– $255.63 median price per square foot, up 14% from last year
– 950 units sold, which is a 21% decline from last year when there were 1199 units sold
– 8 median days on market
Park City Area – June 2022
Single Family Homes, Year/Year
– $1,500,000 median sold price, down 37% from last year
– $436 median price per square foot, down 30% from last year
– 72 units sold, up 2.9%
– 3 median days on market, down from 6 last year
If you’re an avid reader of our market update you might remember that last month the median sold for single family homes in Salt Lake had jumped up to $650,000. This month we’re coming in at $627,500 which is where we have really been since March with June being the outliner. But if the 3.46% month-over-month decline causes some concern, let’s look back a little further.
From June 2021 through January 2022 the median sold price for single family homes in Salt Lake hovered around $550,000. Go back another year to June 2020 and the median sold price was at $424,000. The market is currently adjusting from the frantic pace of the last two years, but the market value of our homes is still incredibly high and our homes are holding onto their appreciation for now.
One of the remarkably different aspects of this market from last year is the amount of residential properties available for sale. As of June 30, 2022 in Salt Lake County there were 2,099 residential properties available for sale. In 2021 there were only 811, that’s a 158% difference. But back on June 30, 2019 there were 2,763 residential properties available for sale, so we’re really just getting back to our normal inventory levels and what we were all used to prior to the market changes in 2020.
Speaking of 2020, there is a new report from the US Federal Reserve that suggests it was spiking demand – not a lack of homes available for sale – that sent prices skyrocketing over the past two years. The report specifically argues that while there was a drop in supply at the beginning of the coronavirus pandemic, that drop was actually “a minor factor relative to increased demand in explaining the tightening of housing markets.” Eventually, strong demand overtook supply issues as the “main factor” in the market.
I don’t think we’re sold on the idea that lack of supply played a minor role in the housing market dynamics of the last two years, especially for Salt Lake. But then again, we can only speak to our local market and perhaps it looks different at a macro level and for different markets like Park City.
In any event, what really caught our attention was the determination that if rates rise just one percent, that lowers demand by 10.4 percent. The report goes on to note that mortgage rate policies are consequently an “effective way to influence short-run fluctuations in the housing market.” That is definitely what we’re all experiencing right now. Perhaps demand for housing is more sensitive to rising mortgage rates than previously thought.
But what we are really watching carefully in our market right now is the amount of homes that are receiving offers, or homes that are “under contract”. This has been trending down for several months, which is directly related to interest rate changes and market uncertainty. And to many, it feels particularly dramatic given the increase in For Sale signs we all see when driving around. If we were to graph it, one line is going up, and the other is going down. How far will these two data points diverge in coming months, or when will they change direction (as they often do) we don’t know.
We do know that buyers are enjoying purchasing in today’s market much more than last year. Buyers can really shop for homes, have many great options to choose from, and are able to actually negotiate again with sellers. And although multiple-offers-the-minute-a-home-is-listed has largely subsided, Sellers are still realizing incredible prices for their homes when they sell, and still able to sell relatively quickly.
In Park City the dynamics are generally similar to Salt Lake. The inventory of homes and land for sale jumped significantly in June to its highest level in almost two years. Both the total number of sales and total number of homes under contract are slowing, but the market remains strong. You can read more in the June Park City MLS Market Report here.
So, is now a good time to get into the market? Yes. Absolutely. The market is shifting to a more balanced real estate market; shifting to something that looks more like the market of several years ago. Or as we wrote last month, it isn’t crumbling, collapsing or plunging into an abyss.
Take a deep breath, turn off the news, and focus on your needs and why you need to move. Then give us a call and let’s go tour a few homes!
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