The Utah real estate market continued seeing highs and lows. Here’s your monthly update on what’s happening.
Data from Utah MLS from July 1, 2021 to July 31, 2021.
The rise in median sale price slowed more in July, with a 2% increase of $10K from June. However, the gap between 2020 prices and 2021 prices remains wide. The median home sale price was up by $154K from last year, an astounding 43% in appreciation. With home prices higher than ever, home sellers can expect hefty returns on their real estate investments, especially if they have owned them for a while.
Days on Market (DOM)
The median number of days on market for a Utah home stayed flat at six for the third month in a row, up from the low point of five days in April. Median DOM was down 60% from the previous year, with homes selling nine days faster on average. With the Utah market having its highest inventory levels in nine months (see below), a continuously low DOM number indicates persistent high demand.
More homes continue to get listed on the Utah market. Inventory came up 28% in July, with 898 more units than the month before. Active listings were still down from the year before, a 30% decrease representing 1783 fewer units. However, the two trend lines were closer to touching than they have been at any point in the last year. That should be a relief for buyers, who are likely to see less competition as they make offers on homes in the Utah market.
Monthly sales cooled slightly in July, which could explain the increase in inventory. Sales dropped by 6%, or 270 Units, from June. Sales were also down by 1162 units from July 2020, a decrease of 20%. Sales were abnormally high in July 2020, which explains the gap between the two years. Historically, July sales have reached just above 4,000 units, so this July saw a relatively normal level of home sales. Whether this indicates a slight sense of returning to normal for the Utah real estate market as a whole remains uncertain.
Analysis from Tonya Bassett, Senior Buy Side Manager
We’ve started to see the market loosen up a bit. More inventory is coming on the market, making it easier to get offers accepted–there are double the active listings on the Wasatch MLS than there were six months ago! We’re also seeing slightly less competition (i.e.,, fewer offers) for most properties, which allows for more offers to get accepted. Homie Loans is now offering Homie Cash to give another boost to our buyers, giving them the ability to make a guaranteed cash offer! We are excited about the possibilities the Homie Cash is going to bring to our buyers, giving their offers an extra edge. Overall, things are looking up for homebuyers. Looking at the market from the eyes of a seller, prices are still rising and are significantly higher than they were at the same time last year. It’s still a good time to sell as well.
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