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With the summer behind us, I wanted to update you on what’s happening with the market and what it means for you.
July and August were the telling months of what the rising interest rates have done to our market. To give you a little insight . . . we’re having more active listings and fewer sold properties.
Side note: These are the stats for Utah in Salt Lake County; however, if you’d like to know the specific numbers for your county, just shoot me a text, or give me a call, and we’ll send that information your way.
What are the numbers?
For the second quarter, we’ve had . . .
- 3,053 listings in Utah County
- 4, 379 listings in Salt Lake County
This is the most amount of listings we’ve had since the second quarter of 2019 for both counties.
What does this mean for you?
This tells us that we’re back to inventory levels of pre-COVID years . . . which is a great thing, right?
Absolutely!
The exciting thing is that the interest rates show an actual drop in the number of homes sold.
In the second quarter, Utah County had 976 homes sold.
You’d think . . .
Well, we’ve got over 3000 listings, right?
Yes, but less than 1000 of those properties actually sold in the second quarter of 2022.
In Salt Lake County, we had 2900 homes sold.
Even though more homes are being sold, there’s still more inventory in Salt Lake – and these numbers are pretty impressive.
There are not as many homes being sold?
Nope.
The number of homes sold in Utah County is lower than it has been since the second quarter of 2018. And before that, during the second quarter of 2017.
Salt Lake County has not seen this low number of homes sold in the last five years. And because of the interest rates, there’s been a huge drop in the number of homes sold.
It’s fascinating. . . I’ve had more buyers contacting me lately.
I honestly think people are adjusting to the interest rates and feeling like . . .
“Well, you know what? It’s a good time to get in and buy a home. And then when rates drop here in the next year or two, I’ll refinance.”
This is a little option that some of my buyers are considering and definitely something other buyers wanna think about.
What about the prices?
What’s interesting about it all is the prices.
As I look back over the last five years, the line is a constant increase. The price has not even dipped or gone since 2017.
In 2017, that very first of the year, our median price in Utah County was $294,000 for a single-family home. At the end of the second quarter, our median price in Utah County is $622,000.
Over double in the increase in values in the last five years. . . Wow, right?
Salt Lake County is very similar.
Just a touch higher, though, on the prices. In Salt Lake County in 2017, the median price was $30,6000.
During the second quarter of 2022, the median price in Salt Lake County was $637,000.
Again, this is for single-family homes. It’s not taking into account condos or townhouses.
One thing that I also think is very interesting to look at is the number of days on the market a home sits before going under contract and the percentage of the asking price the seller is getting when they put their home on the market.
We’ve definitely seen a change in August 2022.
For instance, since August 2017, most of the asking prices have been within a range in Utah County. It’s between 97% of the asking price to 106% of the asking price.
Most in those years, we’re over 100%. This means a buyer comes in and has to offer higher than what the seller is asking.
Now, this is median. We’ve had some homes that get less and some that get a lot more, but this is the median of what we’re seeing.
So, is it a buyer or seller’s market?
In August, though, of 2022, we have seen it hit 97% of the asking price.
That’s a significant change. We haven’t seen that drop that low since December 2019. We are seeing it become a bit more of a buyer’s market. When this happens, we can negotiate some concessions or the asking price just a little bit.
Similar things are happening in Salt Lake County.
In the last five years, Salt Lake County has got between 96% to 107% of the asking price. In August, we dropped to 96%. That’s the lowest we’ve seen since February 2019.
And just one more stat I want to touch on . . .
Cumulative Days on the Market
Once it’s listed, how many days does it take for a home in Utah County to go under contract?
This last quarter in Utah County took 21 days in August.
These are the days on the market we’ve seen since June 2020. We’ve historically seen single-digit days on the market in the last two years. Sometimes, only three or four days, then they are snatched up quickly.
Buyers are taking a little bit longer to decide on a home.
Salt Lake County is similar.
Last month, in August, it took 23 days on average for a home to go under contract. This is the most days we’ve seen the market.
Salt Lake County is very similar.
For August, we’re seeing an average of 23 days that a home stays on the market before going under contract. This is the lowest we’ve seen since February 2020.
Next Steps
As you can see, the market is calming down a little bit. It’s becoming a little bit more favorable for a buyer, but still, an excellent time to sell a home.
I mean, you think about it. If you can get 96% of the asking price, sell your home within three weeks.
Those are still excellent stats for a seller.
It’s just not the same craze we’ve seen during the previous Covid years, but still an excellent time.
If you have any questions or would like to know more information on your local market, please give me a call.
I’d be happy to help anytime.
