Like the recent cooling of our weather, the 3rd Quarter results for Salt Lake County show our local real estate market cooling off a little bit too, but multiple offers are still happening on some properties, inventory remains low and it’s perfectly normal for the market to ease up in the second half of the year, especially after running so hot for so long.
A recent study done by Florida Atlantic University and Florida International University measured the rapid rate of appreciation of homes in 100 major US cities. Salt Lake City, Ogden, and Provo are all in the top seven on that list.
Here’s a look at the top 10 most overvalued residential real estate markets in the country:
Boise, ID – 80.64%
Austin, TX – 50.72%
Ogden, UT – 49.70%
Provo, UT – 46.16%
Detroit, MI – 45.57%
Spokane, WA – 45.21%
Salt Lake City, UT – 42.41%
Phoenix, AZ – 42.31%
Las Vegas, NV – 41.88%
Stockton, CA – 38.50%
The percentages are a measurement of normal appreciation for each city, compared to recent appreciation.
3rd Quarter Results:
Salt Lake County may be the 7th most overvalued housing market in the country, but the inventory of homes for sale remains low and prices continue to rise.
Single Family Homes in Salt Lake County:
The median sold price of a single-family home in Salt Lake County was $550,000 at the end of the 3rd quarter of 2021, a 27.0% increase from $433,000 at the end of the 3rd quarter of 2020. About half of that appreciation occurred in the 2nd quarter of 2021.
This 27% increase from the 3rd quarter 2020 to 2021, is more than twice as much as the 11.4% increase we saw from the 3rd quarter 2019 to 2020, and last year at this time I was saying 11.4% was the greatest increase since the 3rd quarter of 2012 to 2013.
Inventory of single-family homes for sale in Salt Lake County has declined since last year, but so has the number of homes sold. The number of homes listed is down 7.7% and the number of homes sold is down 21.3% from the 3rd quarter of 2020 to 2021, so the pace of the market is slower than last year at this time.
Single Family Homes in Salt Lake City:
The median sold price of a single-family home in Salt Lake City was also $550,000 at the end of the 3rd quarter of 2021, a 20.9% increase from $455,000 at the end of the 3rd quarter of 2020.
Inventory of single-family homes for sale in Salt Lake City fell by 4.4% since the 3rd quarter of 2020 and the number of homes sold has declined 10.4%.
Condos & Townhomes in Salt Lake County:
The median sold price of a condo/townhouse in Salt Lake County was $389,000 at the end of the 3rd quarter of 2021, a 27.5% increase from $305,000 at the end of the 3rd quarter of 2020. About 2/3 of that appreciation happened in the 2nd and 3rd quarters of 2021.
The number of condos listed is down 12.4% from the 3rd quarter of 2020 to 2021, and the number of condos sold is down 15.6%.
Condos & Townhomes in Salt Lake City:
The median sold price of a condo/townhouse in Salt Lake City was $352,000 at the end of the 3rd quarter of 2021, a 19.3% increase from $295,000 at the end of the 3rd quarter of 2020.
The number of condos listed is down 24.9% from 3rd quarter 2020 to 2021, and the number of condos sold is down 13.2%, so condo inventory is still pretty tight at this point due to the lack of condos for sale. If you look at the graph below you’ll see that the number of condos being listed and sold is tracking pretty close together over the last year.
So yes, the market has cooled off a little bit in the last month or two, and home values are inflated on the Wasatch Front, but as long as inventory remains low and demand remains high, I expect we’ll see another year of significant appreciation in 2022.
Personally, even though I own real estate in Salt Lake, I hope the pace of appreciation slows down because the rate at which it is occurring seems unsustainable in the long run, and so many people are being priced out of the market.
If you have any questions about buying or selling residential real estate in or around Salt Lake, wonder what your home is worth, or have a friend, neighbor, coworker, or family member that needs help buying or selling, please contact me. Over 90% of the people I help are repeat customers and referrals from the people I know. I love what I do, and I can’t do it without you!
Kevin,
