The Utah real estate market continued seeing highs and lows. Here’s your monthly update on what’s happening.
Data from Utah MLS from May 1, 2021 to May 31, 2021.
Home prices continued their steady rise and at a quicker pace than the previous year. Utah median home prices rose 42% from May 2020. The median home sold for $140K more in May than it did a year before. The median home price also rose by $45K from April, an increase of 10%. Demand for homes has remained high, which has driven home prices upward in the Utah market.
Days on Market (DOM)
Utah homes sold 65%, or 11 days, faster than they did in May 2020. However, homes sold slightly slower in May than they did in April. The average DOM for Utah homes was six days, as opposed to five days the month before. That’s one more day on average, an increase of 20%. This was the first marginal rise in DOM since February, matching the second-lowest point of the year. Homes are still selling quickly, but this may be an indication that the market is starting to cool down somewhat.
There were 4,864 fewer units on the market in May than there were a year before, a significant 64% decrease. However, active listings rose for the second month in 2021, with 131 more units on the market than there were in April. That represents 5% more available inventory. In May, there was .7 month’s supply on the market. Normally, pre-2020, the Utah market had more than two month’s supply of inventory. A low supply makes it difficult for buyers to get an offer accepted, so more inventory on the market is good news for homebuyers.
Monthly home sales rose by 5% year-over-year, with 198 more units sold than May 2020. Sales came down from the previous month, at 139 fewer units. That’s a decrease of 3%. The spring and summer months have seen rising sales numbers, as is typical in Utah. One possible reason for the dip from April could be limited supply of homes for sale.
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