Utah’s Housing Shortage: How Did We Get Here?

When the pandemic first began there was a sense of concern for the real estate market as fears of another market crash arose. Earlier in the year, we did see a dip in the market locally and nationwide. We are now seeing a surge. Why is this happening? Well, it is a combination of a few different factors, supply, mortgage rates, and location. 

Utah’s Perfect Storm 

The Utah market has seen a massive surge this year. The demand for homes was already high pre-pandemic. As the year goes on, we are only seeing an increase in that demand. We are only seeing houses stay on the market for a median of 12 days. It takes half the time to sell a house today than it did last year. In the month of August 2020, 5,201 total homes were sold with a median price of $362,000. 

The only downside we are seeing to this massive surge is the lack of inventory. While we have seen in the past that Utah has had a problem with inventory, and that problem has been heightened during this current time. When we compare the data from this August compared to last year, we can clearly see this shift. The market now has more pending sales than it has houses on the market, while last year it was the reverse scenario. 

Utah has seen an increase in the number of people wanting to move here for various reasons, this increase in population, and the fact people are staying in their homes longer has led to a market where there are more buyers out in the market then there are sellers.   

Inventory

It’s not only Utah. We see similar trends across the country. The demand for real estate in the Utah market is increasing, but the inventory is starting to dwindle. To put it simply, homes are selling too quickly for the market to keep up. Specifically for Utah, there are 5,184 active listings and 9,995 pending sales. There is a 3 month supply at the current sales pace, which is well below the 6-month pace needed to keep a balanced real estate market.  The national housing inventory has seen a decline including decreases in the inventory of newly listed properties. Due to this shortage, homes are selling up to 18 days faster than the year prior. There has also been an increase in the average price of a  sale; 8.5% more than last year

Even though we see a limited supply in the housing market, there is still a strong demand for the buyer’s side. 

Mortgage Rates

The biggest reason that people are so willing to buy homes at this time is because of the interest rates. According to Windermere Chief Economist Matthew Gardner, In the August reports, for a 30yr fixed-rate mortgage, the interest rate is at a shockingly low rate of 2.9%, last year the rate was sitting at 3.73%. These are historically low numbers. 

With the housing prices rising and the interest rates being so low, you have to look at the difference between the price and the actual cost of the houses you are buying. Even though the house price is higher, with lower interest rates, the monthly mortgage payments are still comparable. With lower rates, it costs less to borrow money from lenders to get the money for your house. This means that buyers may be able to afford more house than initially expected, and is pulling buyers onto the market. 

Why Does This Matter? 

This high demand for homes is predicted to continue on throughout the year, and possibly carry over into 2021. On the buyer’s side, we see historically low-interest rates, which can help counteract the rising price of houses. On the other side, sellers are getting more for their listings than before with the increasing price of houses, and heavy demand will decrease the time needed for your home to sell. The main issue on hand is the housing shortage, and only time will tell how that will affect the market in the long term.

For weekly updates on the housing market, keep an eye on the Windermere Utah Facebook page, as every Monday we post “Mondays with Matthew,” a video update from our Chief Economist about the market.


Posted on October 6, 2020 at 10:58 pm
Matthew Sidford | Posted in Market Trends | Tagged , , , ,

The Gardner Report – Park City – 2020 Second Quarter

The following analysis of select neighborhoods in the Park City real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you in making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent. 

 

ECONOMIC OVERVIEW

COVID-19 had a significant impact on employment in Utah, causing the loss of more than 144,000 jobs in March and April and raising the state’s unemployment rate to 10.4%. For comparison, peak unemployment following the Great Recession was only 8%.

That said, it appears as if Utah’s massive contraction in employment is behind us (at least for now). Employment in the state rose by 40,400 jobs in May, an increase of 2.8% in just one month, allowing the unemployment rate to drop to 8.5%.

Although it is certainly too early to say that we are out of the woods, we seem to be headed in a positive direction. That said, COVID-19 infection rates in Utah started increasing in June and may slow the economic recovery if the direction is not reversed. Regardless, I do not believe that it is likely to have a significant impact on the housing market.

 

HOME SALES

❱ In the second quarter of 2020, 131 homes sold in the Park City area, a drop of 37.3% from the second quarter of 2019, and down 22.9% from the first quarter of this year.

❱ Home sales were a mixed bag, with increases in 4 neighborhoods but declines in 14. The areas that saw sales activity increase are all very small.

❱ The drop in sales came as inventory levels rose more than 300%. The most likely explanation is that concerns over COVID-19 outweighed the additional choice of available homes.

❱ Pending home sales were 15.6% lower than a year ago, but only 3.1% lower than in the first quarter. This makes me hopeful that the market will start to stabilize as we move through the balance of the year.

 

 

HOME PRICES

❱ The average home price in the Park City neighborhoods contained in this report rose 1.9% year-over-year to $1.159 million. Sale prices were 0.6% higher than in the first quarter of 2020.

❱ The most affordable neighborhoods in terms of average sale prices were Kimball, Heber North & East, Wanship, Hoytsville, Coalville, and Rockport. The most expensive were Upper Deer Valley Resort & Empire Pass, Promontory, and Thaynes Canyon.

❱ Prices rose in a majority of neighborhoods, with significant gains in the Promontory, Thaynes Canyon, Jeremy Ranch, and Lower Deer Valley Resort & Deer Crest neighborhoods. Annual sale prices dropped in seven markets, with the Canyons Village area experiencing the steepest decline.

❱ The Park City market is relatively small, but with some very expensive real estate. It will be interesting to see if COVID-19-related impacts persist or if we start to see a return to normal activity.

 

 

DAYS ON MARKET

❱ The average time it took to sell a home in the Park City area rose three days compared to the second quarter of 2019.

❱ The amount of time it took to sell a home dropped in nine market areas and rose in nine compared to a year ago.

❱ In the second quarter of this year, it took an average of 101 days to sell a home. Homes sold fastest in Summit Park and slowest in the Canyons Village neighborhood.

❱ The greatest drop in market time was in the Tuhaye/Hideout neighborhood, where it took 91 fewer days to sell a home than during the same period a year ago.

 

 

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Clearly, the Park City housing market was still reacting to the influences of COVID-19 during the second quarter. I see demand, but the pandemic is still making the direction of housing uncertain. That said, I remain hopeful that we will start to get some clarity as we move through the balance of the year. Assuming the state gets new infection rates back under control, I can see the market start to perform at its potential in the second half of the year. As such, I am leaving the needle in the same position as last quarter.

 

 

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

 

Originally posted in Park City Real Estate Market Update by Matthew Gardner, Chief Economist, Windermere Real Estate


Posted on August 3, 2020 at 6:07 pm
Matthew Sidford | Posted in Market Trends, Park City | Tagged , ,

The Gardner Report – Park City – 2020 First Quarter

We are excited to introduce the Gardner Report to Park City, Utah! The following analysis of select neighborhoods in the Park City real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent. 

 

A MESSAGE FROM MATTHEW GARDNER

Needless to say, any discussion about the U.S. economy, state economy, or housing markets in the first quarter of this year is almost meaningless given events surrounding the COVID-19 virus.

Although you will see below data regarding housing activity in the region, many markets came close to halting transactions in March and many remain in some level of paralysis. As such, drawing conclusions from the data is almost a futile effort. I would say, though, it is my belief that the national and state housing markets were in good shape before the virus hit and will be in good shape again, once we come out on the other side. In a similar fashion, I anticipate the national and regional economies will start to thaw, and that many of the jobs lost will return with relative speed. Of course, all of these statements are wholly dependent on the country seeing a peak in new infections in the relatively near future. I stand by my contention that the housing market will survive the current economic crisis and it is likely we will resume a more normalized pattern of home sales in the second half of the year.

 

HOME SALES
  • In the first quarter of 2020, 170 homes sold, an increase of 18.9% over the first quarter of 2019.
  • Sales were a mixed bag, with increases in eight neighborhoods, sales static in three, and dropping in seven. There was double-digit growth in sales in several areas. However, as the market areas in this report are all relatively small, significant swings in either direction are not unexpected.
  • The growth in sales came as inventory levels fell by a very significant 70% from a year ago. This can likely be attributed to COVID-19. Second quarter data will confirm or refute this thesis.
  • Pending home sales dropped 40% compared to the first quarter of 2019. Again, this is likely due to COVID-19.

 

 

HOME PRICES
  • The average home price in the Park City neighborhoods contained in this report dropped 2.1% year-over-year to $1.152 million.
  • The most affordable neighborhoods — in terms of average sale prices — were Kimball and Kamas & Marion. The most expensive were Lower Deer Resort & Deer Crest, Promontory, and Upper Deer Resort & Empire Pass.
  • Although aggregate prices went down, prices still rose in a majority of the neighborhoods that this report analyzes. The Summit Park area had significant gains, and an additional eight areas had double-digit increases. On an annual basis, prices dropped in four markets, with the Upper Deer Valley area seeing the biggest declines.
  • As this is the first Park City Gardner Report, commentary is limited. It will be interesting to see how the market further reacts to COVID-19 and we look forward to offering analysis and perspective when we get second quarter data.

 

 

DAYS ON MARKET
  • The average time it took to sell a home in the Park City area dropped 42 days compared to the first quarter of 2019.
  • The amount of time it took to sell a home dropped in 13 market areas and rose in 5.
  • In the first quarter, it took an average of 99 days to sell a home, with homes selling fastest in Thaynes Canyon and slowest in the Promontory neighborhood.
  • The greatest drop in market time was in the Thaynes Canyon and Heber North & East neighborhoods.

 

 

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Given the current economic environment, I have decided to freeze the needle in place until we see a restart in the economy. Once we have resumed “normal” economic activity, there will be a period of adjustment with regard to housing. Therefore, it is appropriate to wait until later in the year to offer my opinions about any quantitative impact the pandemic will have on the housing market.

 

 

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures


Posted on May 1, 2020 at 6:34 pm
Matthew Sidford | Posted in Market Trends | Tagged , , , ,

The Reid Report – Park City 2019

THE BIG PICTURE – IT JUST KEEPS GETTING BETTER!
By Jess Reid

Since the great recession, the Park City Real Estate market has continued to grow and improve every year. Overall, 2019 closed volume is up 13% over 2018 for a phenomenal $2.7B dollars. Notable influences on our market include: An ever expanding geographic area of real estate including, extensive remodeling of older properties and many new construction projects. Park City currently offers a variety of real estate options for all kinds of buyers. Generally speaking, prices have been rising dramatically and a leveling off of prices, might be very healthy in the long run.

Read on to learn more about the diverse segments of our market.

SINGLE FAMILY HOME SALES

For 2019 vs. 2018, transactions are up 4% to 1,102 and sales volume is up 14% to $1.6B. Average prices vary greatly by area, but are generally up across the board over the previous year. We continue the trend, of higher priced homes ($4M and up) taking longer to sell. Here are some average single family sale prices in a few popular areas:

❱  Old Town – $2.144M

❱  Deer Valley – $4.7M

❱  Park Meadows – $2.26M

❱  Silver Springs – $1.3M

OVERALL CONDOMINIUM SALES

Volume is up 24% to $865M and like SF homes average prices vary dramatically. Some areas have very few condos (Silver Springs and Jeremy Ranch), while others are primarily condos (Canyons Village and Deer Valley). Empire Pass in Deer Valley, resale condominium volume and average price is slightly down. We believe this is primarily due to the new, much higher priced, projects being presold in the area.

 

DEER VALLEY

Deer Valley continues to satisfy luxury home buyers in our market and Deer Valley Resort has many exciting new things going on! Even though sales volume is slightly down throughout Deer Valley, this is most likely a result of the exciting new projects that are sold but still under construction. There is much buzz and excitement about the remodel and update of the Snow Park Lodge this summer and other lodges after that. After many years of speculation, it appears that Deer Valley may be seriously considering building the long planned village on the Snow Park parking lots. There is also talk of a new condominium project next to a major lift in Deer Crest and the continuing negotiation to include Mayflower Resort as part of Deer Valley.

VACANT LAND SALES

Vacant Land Sales have decreased in the greater Park City area, however, this should change with the huge new subdivisions coming on in the Jordanelle area (Sky Ridge). The primary reason for this decrease, is the lack of new lots, as Park City is very close to build out and the Snyderville Basin is also running low on building lots. The general Heber Valley area also has very few lot sales because most of the lots are controlled by developers and are being sold with homes on them.

HEBER VALLEY AND WEST COUNTY

Heber City is a much smaller market than the rest of the Park City area, but a very important one. It serves as a more affordable place to live for people to have a primary residence or a vacation home. Midway is especially popular for vacation homes. The East County, which includes communities such as Woodland, Kamas and Oakley, is another area with lower prices than Park City and is becoming a haven for more primary residences and larger horse properties. This area has more of a rural feel than any other part of our market.

NEW CONSTRUCTION PROJECTS

New Construction projects are having a big impact on our market and will continue to in our future. Here are some prime examples:

❱  Park City Mountain Resort Village in the Park City limits. (See article on page one)

❱  Mayflower Mountain – A Billion Dollar ski area in Wasatch County overlooking the Jordanelle Reservoir. A 20 year project comprised of commercial retail, condominium hotels, ski runs and lifts and a special condo/hotel for the Military.

❱  Canyons Village is only about 40% built out with very high density approved for the master plan. Over 7 large projects are under construction with presales already.

❱  Jordanelle projects are underway with numerous condominium projects and a 450 lot subdivision (Sky Ridge).

 

GOLF / RESORT COMMUNITIES

Golf & Resort Communities are also another positive influence on our real estate market. They are a unique blend of golf courses and activities for the whole family from bowling to fly fishing to hiking and camping areas to gun clubs. All of these communities have multiple club houses that cater to all age groups and some of them have numerous Golf Courses as well. Here are some of the prominent Golf Resort communities:

❱  Red Ledges

❱  Victory Ranch

❱  Promontory

❱  Tuhaye

LIVING IN PARK CITY

We live here because it is hard to beat 300 days of sunshine & 350+ inches of snow fall each year. There are over 500 miles of maintained trails and thousands of acres of open space to preserve beautiful vistas and prevent over development. Our High School ranks in the top 2% nationally. Our Ski Resorts are rated some of the best in the World, year after year. We are only 45 minutes to an international airport and an easy commute to
a major metropolitan area, including “the Silicon Slopes,” a tech power house. The laid back vibes of our mountain town combined with pristine living and endless adventures right at our door step, make us happy to call Park City home.

All data was collected from Park City Multiple Listing Service, Inc. / Park City Board of Realtors 2019 Report.

At Windermere Utah, we are proud to keep you up-to-date on the latest news, events, and listings. Be sure to keep checking back in here at the blog, and don’t forget to follow us on social media.


Posted on March 6, 2020 at 5:38 pm
Matthew Sidford | Posted in Market Trends, Park City | Tagged , , , , ,

The Gardner Report – 2019 Fourth Quarter

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

Utah’s non-agricultural employment growth continues to impress. The addition of 49,500 jobs over the past 12 months represents a solid growth rate of 2.8%. We did see some fairly modest slowing in employment gains earlier in the year, but this appears to have been reversed. My current forecast is for the state to continue to grow its job base, though I anticipate modest slowing in the number of new jobs. With around 41,700 new positions added, we will see employment grow 2.6% in 2020. In November, the state unemployment rate was 2.4%, down from 3.2% a year ago.

HOME SALES

  • 8,768 homes sold in the final quarter of 2019, representing a solid increase of 7% compared to the same period in 2018, but 17% fewer homes traded hands compared to the third quarter of 2019.
  • Total sales activity rose in all but the very small Morgan County. Year-over-year, sales rose by double digits in three counties, with impressive increases in Wasatch, Summit, and Utah counties.
  • The number of homes for sale in the final quarter of the year was 14.4% lower than in the same period a year ago and 21.3% lower than the third quarter of 2019. Regular readers may remember that listing activity had been rising, but I am afraid those days are behind us.
  • Pending sales in the fourth quarter were up 10.7% compared to a year ago but were 24.3% lower than in the third quarter, suggesting that closings in the first quarter of 2020 may drop from current levels.

 

 

HOME PRICES

  • The average home price in the region continued to rise in the fourth quarter, with a year-over-year increase of 9.5% to an average of $403,186. Home prices were 0.4% higher than in the third quarter of 2019.
  • All counties contained in this report saw price increases compared to the same period a year ago, with impressive gains across the board.
  • Appreciation was strongest in Wasatch County, where prices were up 11.7% to $681,300.
  • Home prices continue to appreciate at significant rates. I hope to see some slowing in price growth as we move through 2020, but this will only happen if the supply of homes for sale grows significantly.

 

DAYS ON MARKET

  • The average number of days it took to sell a home in the counties covered by this report rose four days compared to a year ago.
  • Matching the third quarter, homes sold fastest in Davis, Salt Lake, and Weber counties, and slowest in the expensive Summit County. All counties except Summit saw days-on-market rise compared to the fourth quarter of 2018.
  • During the fourth quarter of the year, it took an average of 57 days to sell a home in the region, up from 45 days in third quarter.
  • The modest increase in market time is not a concern as there still appears to be significant demand for housing.

 

 

CONCLUSIONS


This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the final quarter of 2019, I have moved the needle just a little more in favor of sellers. Inventory levels remain low, even in the face of modestly increasing market time. Prices and closed sales are higher, and these things certainly favor sellers.

ABOUT MATTHEW GARDNER


As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

At Windermere Utah, we are proud to keep you up-to-date on the latest news, events, and listings. Be sure to keep checking back in here at the blog, and don’t forget to follow us on social media.


Posted on January 27, 2020 at 8:03 pm
Matthew Sidford | Posted in Market Trends | Tagged , ,

How to Know if it’s Time to Downsize

Choosing less space often has to do with a desire to live a life that’s simpler. Whether you’re retiring, want an eco-friendly, low-maintenance lifestyle or your children have moved away, downsizing might be the best option for you. Here are the advantages and disadvantages to consider before making the move and questions to begin asking yourself now.

 

Advantages

  • Increased cash flow.
    • Spend less on your mortgage payment and you are likely to have more money leftover for other needs or desires.
  • More time.
    • Cut down on time spent on household chores such as cleaning and vacuuming which will leave you with more hours in the day to do something more enjoyable.
  • Lower utility bills.
    • Costs less to heat and air condition a small home.
    • Less square footage decreases the amount of energy expended.
    • Reducing energy is better for the environment and it helps keep your home green.
  • Reduced consumption.
    • You would likely buy less since you won’t necessarily have the room for it.
  • Minimized stress.
    • Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home.
    • Less responsibility, less housework to do, increased cash flow and flexibility equals reduced stress.

Image Source: Shutterstock 

Disadvantages

  • Fewer belongings.
    • Moving into a smaller space would mean you would need to give away or donate furniture, books, kitchen supplies, etc.
  • No room for guests.
    • Hosting holiday dinners might be out of the question for a smaller home.
  • Space restrictions.
    • Less space means you could feel cramped.
  • Lifestyle changes.
    • For long-term homeowners, downsizing means changing a lifestyle.

 

What to consider before downsizing

These questions are important to ask yourself because for some people, downsizing may not be the best option for them.

  1. Does size matter to me?
    1. Think about how much your identity is wrapped in your house.
    2. Is it important for you to have a guest room or a second bathroom?
  2. Will I miss some important things about a more spacious home?
    1. Will moving into a smaller home feel like a step backward?
  3. How will other life events affect my living in a smaller home?
    1. Consider possible scenarios you may not expect such as adult children moving back home or if you plan to add a child.

 

The Cost to You

  1. How much will it cost to replace the furniture?
    1. When you move into a smaller home this means you might have to downsize your furniture to make room.
  2. How much will it cost to get rid of the stuff I don’t need or won’t fit?
    1. It’s important to have a plan for how you’re going to sell or give away the things you don’t need.
    2. Consider things like family heirlooms. What are you going to do with all your antiques or treasures that your smaller home may not be able to accommodate?
  3. How much will I get when I sell my current home, and will it help cover the cost of buying my new home?

 

If you know downsizing is the right option for you, you’re probably asking yourself, “Should I sell first and then buy or buy first and then sell?”. When you’re ready to discuss your options, talk to an experienced Real Estate Agent. 

Originally posted on the Windermere Blog, in Buying and Selling by Meaghan McGlynn


Posted on January 22, 2020 at 8:31 pm
Matthew Sidford | Posted in Living, Market Trends | Tagged , , ,

Q3 Gardner Report: Utah Real Estate Market Trends

Introducing the Q3 Gardner Report: Trends of the Utah Real Estate Market

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Agent.

Economic Overview

Utah’s non-agricultural employment rose by 42,100 jobs over the past 12 months, representing a solid growth rate of 2.8%. For perspective, the U.S growth rate is 1.4%. Year to date, Utah has added an average of 3,350 jobs per month, which is down from 4,200 per month last year. I expect we will continue to see modest slowing in employment gains as we move forward given the maturity of the economic cycle. Although the trend is slowing, I anticipate the state will see job growth around 2.8% in  2019. My early forecast for 2020 suggests that Utah will see employment growth of 2.6%.

In August, the state unemployment rate was 2.8%, below the 3.1% level of a year ago.

 

Home Sales

  • In the third quarter of 2019, 10,562 homes sold, representing a solid increase of 8.2% compared to the same period in 2018 and 4.3% higher than in the second quarter of this year.
  • Total sales activity rose in all but the very small Morgan County. Year-over-year, sales rose by double digits in three counties, with impressive increases in Summit and Utah counties.
  • The number of homes for sale in the third quarter was only 2.6% higher than in the same period a year ago but was 11% higher than the second quarter of this year. There continues to be significantly more choice in the market, which is good news for home buyers.
  • Pending sales in the third quarter were up 13% compared to a year ago, but were 7% lower than in the second quarter, suggesting that closings in the final quarter of this year may drop from current levels.

 

 

Home Prices

  • The average home price in the region continued to rise in the third quarter, with a year-over-year increase of 9% to an average of $401,638. Sale prices were 2.5% higher than in the second quarter of this year.
  • All but Wasatch County saw price increases compared to the same period a year ago. The contraction of price in Summit County was significant, but, because it is a small and very expensive area, I am not overly concerned this represents a pervasive trend.
  • Appreciation was again strongest in Weber County, where sale prices were up by 13.7% to $298,333. As the most affordable market in the area, this is not surprising.
  • The takeaway here is that home prices continue to appreciate at significant rates. I still expect to see some moderation in price growth as we move through the year and into 2020, but Utah will clearly continue to outperform the nation as a whole.

 

 

Days on Market

  • The average number of days it took to sell a home in the counties covered by this report rose eight days compared to the third quarter of 2018.
  • Homes sold fastest in Davis, Salt Lake, and Weber counties, and slowest in the expensive Summit County. All counties saw days-on-market rise compared to the third quarter of 2018.
  • During the third quarter of this year, it took an average of 45 days to sell a home in the region, down from 53 days in the second quarter.
  • The Utah economy is still outperforming almost all other states and this will continue to drive housing demand.

 

 

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the third quarter of 2019, I have moved the needle a little more in favor of sellers. Although the area has seen a modest increase in the number of homes for sale and days-on-market, prices, pending sales, and closed sales are higher, which certainly favors sellers.

 

 

About Matthew Gardner

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.


Posted on October 29, 2019 at 8:03 pm
Matthew Sidford | Posted in Market Trends |