Utah real estate market update comparing year over year numbers from December 2020 to December 2021 by Eric Gardiner Brokered by Blackwell Realty Group

Total Sales Are Down 9%

What’s happened between December 2020 and December 2021? Short answer: Inventory is super super low. I just helped a buyer get a contract done this December and it was so hard because what he was looking for there was only 3 in all of Davis county within his price range which was under $500,000. So inventory is super tight right now and that is what is restricting sales.

List Price Is Up 23%

No surprise here but prices continue to soar from $380,000 in December 2020 to $467,250 in December 2021.

Sold Price Is Up 25%

That is 25% equity increase from from $385,000 in December 2020 to $483,000 in December 2021.

Days On Market Is Up 57%

Increasing from 7 days on market in December 2020 to 11 days on market in December 2021. Why? Buyer may be overpricing their properties a bit or simply waiting a bit longer before going under contract trying to increase the number of offers. Either way, 7 or 11 days is pretty close.

What’s Continuing to Drive The Real Estate Frenzy In Utah?

We’ve received additional information by Jerome Powell from the Federal Reserve about what’s going on. They did have a meeting in early December and released the minutes from their January 5th meeting which caused a big reaction in the market as a result.

“Federal Reserve officials at their meeting last month eyed a faster timetable for raising interest rates this year, potentially as soon as March, amid greater discomfort with high inflation.”

Nick Timiraos, Wall Street Journal

Originally they thought inflation would be transitory but now its more here to stay. They wanted it at around 2% but now its more close to 4%-5% depending on the story you look at. So about four months again we were talking about maybe a 1/4 or 1/2 percent but right now they’re talking about a 3/4% increase starting in March. So that is what is increasing mortgage rates for buyers and what that will eventually do is slow down demand and get us to more of an equilibrium.

Hurry Up And Buy?

Either way, what these rates increases will cause is people will want to hurry up and buy to lock in interest rates by getting a property now. So that’s probably increasing demand in the short run while supply is still constricted but over time as rates increase demand will slow. So yes, we have a lot of weird things happening in the market right now that is contributing to this crazy high price appreciation that we’re seeing in the market right now.

Should I Act Now Or Wait?

Hopefully by now you have a good idea of where the market stands now. Depending on your situation you may be ready to find out what your home is worth (probably a lot more than you think) or you may want to get a personalized home search sent directly to your e-mail from me. Let me know that best way to get you the information and tools you need to make the best decision going forward. Any questions, please get in touch with me and I will get back to you by the next business day at the latest.