Has the real estate market been talking to the weather? It sure feels that way to me!
Seriously, it was the hottest June on record for Utah and seven other states and the hottest June on record for the entire Lower 48. At this point, 93% of the western US is in drought conditions and 60% in Extreme drought conditions. Please don’t waste water and be careful out there.
Records are being broken in our local real estate market too, and that’s good news if you own a home. But, if you don’t, I still think the market has upside potential due to record low inventory and the strong local economy, and if you’re planning to be in the area for the next three to five years, buying a home probably makes sense.
Utah and the Wasatch Front have been ranked at the top of many national economic lists for the last 10 years, our economic outlook is strong, and interest rates remain low.
So let’s take a look at the second-quarter results!
2nd Quarter Median Price Changes:
Salt Lake County Single Family Homes:
The median price of a single-family home in Salt Lake County increased from $410,000 in the 2nd quarter of 2020 to $535,000 in the 2nd quarter of 2021, a 30.5% increase. In the five years from 2016 to 2021, the median price increased 78%.
On the table below, you’ll see that the Median Sold Price (Blue line) increased pretty consistently from 2016 to 2020, and then in 2021, the slope gets really steep.
You’ll also see that the Total Number of Homes Listed for sale (Green line) was pretty consistent from 2016 to 2019 and then fell off drastically with a 20% decline in second-quarter inventory from 2019 to 2020, and another 10% decline from 2020 to 2021. I looked back twenty years, and the new listing inventory has never been this low in Salt Lake County.
This lack of inventory of homes for sale has led to a long line of buyers that resemble the frenzied cue of music fans when the gates open at a Red Butte Garden Amphitheater show, with lenders scanning buyer’s tickets and the Realtors acting as the ushers asking everyone to please be polite and don’t run to your piece of real estate.
Salt Lake City Single Family Homes:
The median price of a single-family home in Salt Lake City increased from $418,000 in the 2nd quarter of 2020 to $544,000 in the 2nd quarter of 2021, a 30.1% increase. In the five years from 2016 to 2021, the median price increased 78%.
The levels of appreciation of single-family homes in the city and county are very consistent, however when you compare the Total Number of Homes Listed for sale in Salt Lake City over the last five years, there isn’t a big decline in 2020 or 2021, the number of homes listed is pretty consistent and the number of homes being sold increased to a level higher than any 2nd quarter in the last five years.
Don’t let that fool you though, demand in the city is high, and it can be one of the toughest areas to buy a home in, with 20% of the homes selling to cash buyers during the 2nd quarter of 2021, while only 16% of homes sold to cash buyers in Salt Lake County during that time. Both of these numbers are way up from the 2nd quarter of 2020, when just 10% of the homes in the city and 8% of the homes in the county, sold to cash buyers.
Salt Lake County Condos and Townhomes:
The median price of condos and townhomes in Salt Lake County increased from $288,000 in the 2nd quarter of 2020 to $369,000 in the 2nd quarter of 2021, a 28.1% increase. In the five years from 2016 to 2021, the median price increased by 80%.
Inventory of condos and townhomes listed for sale actually spiked last year during the 2nd of quarter 2020, and the sale of condos declined. Now in 2021, we see almost the direct opposite with 1,478 condos listed for sale and 1,441 condos sold. With inventory, this tight, more appreciation seems like a sure thing.
Salt Lake City Condos and Townhomes:
The median price of condos and townhomes in Salt Lake City increased from $267,000 in the 2nd quarter of 2020 to $340,000 in the 2nd quarter of 2021, a 27.3% increase. In the five years from 2016 to 2021, the median price increased 71%.
More condos and townhomes sold than were listed in Salt Lake City during the 2nd quarter of 2021 with 429 listed for sale and 450 sold during this time. Again, limited inventory will likely lead to more appreciation for condos and townhomes in the city moving forward.
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, coworker, or family member that needs help buying or selling, please contact me. Your referrals mean a lot to me!
I’ve been a Realtor in Salt Lake since 1999, and absolutely love what I do, and I can’t do it without you!
REALTOR BROKER MBA CRS
M: (801) 243-0699
“Providing Representation for Home Buyers & Sellers throughout Salt Lake”