Are we back to 2021 prices?

No, not in Salt Lake City. Prices have remained stable. The median sales price for detached homes in Salt Lake for July 2022 was $600,000. It was $550,000 in July 2021.  But the market is definitely confusing, a bit inconsistent and quite sensitive. 

Before we dive into last month’s numbers, we want to share with you what we see in our local market right now. 

Homes can absolutely still get bid up with multiple offers. But homes can also now sit on the market for months without any interest from buyers. That is something that’s changed since last year. 

One of our own listings received four offers over the weekend and was under contract within a week. But this was in large part due to the seller understanding the dynamics of today’s market. The home was spotless, staged beautifully and priced right. A colleague of ours with another picture-ready home had eighty tours over the weekend. That home also received multiple offers. 

Buyers are smart and they are shopping. They understand the market and they understand the intrinsic value of homes, and factors like lot, views, location, and overall condition weigh significantly in their decision. They also want homes that are updated, cleaned and move-in ready. 

Weird floor plans, bad driveways, unfinished landscaping and interiors that are worn out, dirty or dated can be harder to sell. Sellers of these homes have to price accordingly and clean, clean, clean. 

And flippers? Are they around anymore? Some, but they have to work within today’s market dynamics too, so if their home has a weird floor plan, they also have to adjust the price accordingly. 

With that in mind, here are the latest housing numbers for Salt Lake City and Park City.

Salt Lake Area – July 2022
Single Family Homes, Year/Year
– $600,000 median sold price, up 9% from last year
– $246 median price per square foot, up 10% from last year
– 752 units sold, down 34% from last year
– 14 median days on market, up from 6 last year

Park City Area – July 2022
Single Family Homes, Year/Year
– $1,667,500 median sold price, down 29% from last year
– $476 median price per square foot, down 20% from last year
– 41 units sold, down 46% from last year
– 53 median days on market, up from 11 last year

Total sales have declined. In July 2021 there were 1,137 single family homes sold in Salt Lake County. Last month, there were only 752. So does this mean the Utah real estate market is going to crash? Recession? Correction? Bursting bubble? What’s the right name for what’s happening right now? 

We can’t label it, but we can look at the data. Remember 2019? Just 3 years ago – Trump was in office and Covid wasn’t here yet – but yet several of the benchmark housing numbers of today look similar to back then. 

Looking at a macro level with all property types, in all Utah counties, as of July 31, 2022, there were 9,588 properties available for sale and 6,010 properties currently under contract. As of July 31, 2019 there were 9,832 properties available for sale and 6,567 properties under contract. Median days on market was 19 back in 2019, and it was 14 last month. Very similar numbers when comparing those two years. Of course, the median sales price has significantly increased since 2019, but that was also before mortgage rates hit their lowest levels in 2020 and 2021.  

Ultimately what this means for us today, is that to sell successfully in this market you must be informed. Sellers need guidance and counsel on how to prepare their home for buyers, and price it right. To buy successfully, buyers need guidance on pricing too, so they know how to make a strong offer on the home they really want. You can still lose out on a home to another buyer. And nobody, in any market, wants to overpay. 

Most importantly, you need a strong team in this market who knows how to navigate our local real estate dynamic, protect your financial interests, and get you to the closing table. And that’s exactly the level of service and professionalism we will provide to  you. Give us a call now and let’s get you into that new home before fall.