The Big Picture in the second half of 2018 has been quite chaotic. Our political system is polarized, which has led to a government shut down, the stock market has been highly volatile, Brexit has gone sideways and global economic growth is cooling down.
On a local level, Forbes ranked Utah the #2 best state to do business in, Utah’s Unemployment level was at 3.2% in December 2018, Median Household Income is at $69,000/year and our housing market seems to be holding up pretty well overall, with continued low housing inventory.
So let’s take a look at our local numbers from 2018 for the Salt Lake single family home and condo markets.
4th Quarter 2018 Results:
The median price of a single family home in Salt Lake County increased from $330,000 in the 4th quarter of 2017, to $355,000 in the 4th quarter of 2018, a 7.6% increase. If you look at the same time frame from 2016 to 2017, the increase was 11.9%.
Housing inventory remains tight with 2,998 homes sold and 3,217 homes listed for sale in the 4th quarter of 2018, so slightly more homes were listed than were sold. In the 4th quarter of 2016 and 2017, there were slightly more homes sold than listed, so inventory is slightly greater than the previous two years at this time.
The median price of a single family home in Salt Lake City increased from $330,000 in the 4th quarter of 2017, to $347,000 in the 4th quarter of 2018, a 5.2% increase. If you look at the same time frame from 2016 to 2017, the increase was 10.0%.
Also, if you look at the graph below, you’ll notice that the median price at the end of the 2nd quarter 2018, was at an all time high at $370,000, a 12.1% increase in the first half. From there, it decline by 6.2%, down to $347,000 by the end of the 4th quarter 2018.
I noticed the softness in the city market during the second half, so I’m not surprised by this. I’m pretty sure that this slight downtrend is now behind us because spring is on the way, and if you look at the graph below, the number of homes sold compared to the number of homes listed in the 4th quarter of 2018 is nearly equal, which is the same way it was in the 4th quarter of 2016 and 2017.
The median price of a condo/townhouse in Salt Lake County increased from $231,000 in the 4th quarter of 2017, to $260,000 in the 4th quarter of 2018, a 12.6% increase. If you look at the same time frame from 2016 to 2017, the increase was 10.0%.
Condo inventory is very tight right now, with the number of condos sold nearly equal to the number of condos listed in the 4th quarter of 2018, which is pretty much where inventory was at at the end of the 4th quarter in 2016 and 2017.
The median price of a condo/townhouse in Salt Lake City increased from $218,000 in the 4th quarter of 2017, to $259,000 in the 4th quarter of 2018, a 18.8% increase. Most of that increase happened in the 1st quarter of 2018, with condos at a median price of $250,000 at the end of the 1st quarter 2018.
Similar to Condos in Salt Lake County, inventory is very tight with the number of condos sold was nearly equal to the number of condos listed in the 4th quarter of 2018.
30-year Mortgage Rate Update:
The 30-year mortgage rate was at an average 4.45% per Freddie Mac, on 1/17/19.
If you look back to 2017, the 30-year rate hit a low that year of 3.78% on 9/17/17. Over the next fourteen months, it rose to 4.94% by 11/15/18. So rates have rolled back 0.39% in the last two months and the Federal Reserve has changed their position on interest rates during this time, from a plan to increase rates, to a wait and see approach, due to the turbulence I mentioned above.
If you have any questions about buying or selling real estate in and around Salt Lake County, wonder what your home is worth, or have a friend that needs help buying or selling, please contact me. I’ve been a local Realtor since 1999, and absolutely love what I do, and I can’t do it without you.
Thank you!
Kev
Kevin Coyle
Realtor Broker MBA CRS
SLC Homes
M: (801) 243-0699
Kevin@SLCHomeBuyer.com
