Last weekend, Joy and I drove down to Moab for the New Year, and on the way down we talked about how the whole trip is in front of you on the first day, and it’s such a great feeling to be on a new adventure! That’s where we are right now at the beginning of 2022, optimistic with plans for the new year and excited about what’s on the horizon!
In this month’s SLC Homes News we’ll look back at the 4th quarter results in Salt Lake County for 2021 and we’ll look at the current inventory situation moving into 2022 to better understand what’s on the horizon.
4th Quarter 2021 Results for Salt Lake County Single Family Homes:
The median price of a single-family home in Salt Lake County increased from $440,000 in the 4th quarter of 2020, to $555,000 in the 4th quarter of 2021, a 26.1% increase. This is the greatest amount of annual appreciation that we’ve ever seen, and it follows the 14.6% increase we saw at this same time last year.
If you look at the appreciation from the 4th Quarter of 2019 to the 4th of quarter 2021, we saw an increase from $385,000 to $555,000, a 44.2% increase in two years, which consisted of an amazing eight consecutive quarters of appreciation.
To put this price appreciation in perspective, in the previous four years, from the 4th of quarter 2015 to the 4th quarter of 2019, we saw an increase in the median price from $273,000 to $385,000, a 41.0% increase.
The are many reasons for the high level of demand for single-family homes like stable interest rates, record low unemployment, a high level of net migration into Utah, and the accelerated growth of the 25 to 34 year old demographic in Utah.
On the other end, we’ve been experiencing a squeeze on our supply with very low inventory of homes for sale in the last two years compared to the previous four years. The graph below shows the number of single-family homes listed and sold since 2015.
The total number of homes listed in 2019 was 16,146, in 2020 it was 14,830 and in 2021 it was 13,327. Prior to this decline in inventory, the graph above shows a consistent pattern in the supply of homes for sale from the beginning of 2015 to the end of 2019.
4th Quarter 2021 Results for Salt Lake County Condos & Townhomes:
The median price of a condo/townhouse in Salt Lake County increased from $326,000 in the 4th quarter of 2020 to $400,000 in the 4th quarter of 2021, a 22.7% increase. This is the greatest amount of annual appreciation that we’ve ever seen for condos, and it follows the 16.4% increase we saw in 2020.
If you look at the appreciation from the 4th Quarter of 2019 to the 4th of quarter 2021, we saw an increase from $280,000 to $400,000, a 42.9% increase in two years.
In the previous four years, from the 4th of quarter 2015 to the 4th quarter of 2019, we saw an increase in the median price from $200,000 to $280,000, a 40.0% increase.
On the Horizon:
Looking forward to 2022, the current inventory of homes and condos is as low as I’ve ever seen it. Right now there are a total of 270 single-family homes for sale in Salt Lake County, with just 43 homes under $500,000. To put that in perspective, the highest inventory level I’ve documented this year was 872 homes for sale on August 31, 2021. During the period of 2015 to 2019, there were typically 1,000 to 1,500 homes for sale at any given time.
Inventory of condos and townhomes is also currently very low with 102 units for sale in Salt Lake County, and just 16 units listed under $350,000.
I think it’s safe to say that with inventory this low, we will have another year of above-normal appreciation for residential properties in Salt Lake County.
If you or someone you know have any questions about buying or selling real estate or wonder what your home is worth, give me a shout!
Also keep in mind that I offer professional home staging and photos for sellers as part of the deal, at no extra cost to you. There are various studies you’ll find online that show that homes that are professionally staged and photographed can sell for 5% to 10% or more, than homes that aren’t professionally staged and photographed.
Thanks for your referrals and here’s to a great 2022!!