Is the market experiencing a slowdown? Here’s our latest market update.
Are home sales slowing down in the Salt Lake area? To answer that question, we need to address a few statistics. On the surface, the statistics show that home sales have indeed dropped and that they’re selling for less. Back in May and June, homes sold for 104% or more of their list prices, whereas now they’re selling for 101% or 102%.
However, we’re still in a very strong seller’s market; prices are not generally decreasing, and we’re not seeing a slowdown. The median sale price in the Salt Lake area was $392,000 this January, and now the median sale price is $475,000. In terms of a “slowdown,” we’ve seen a $75,000 increase (nearly 20%) this year alone. That’s pretty dramatic! We’ll most likely see a slight drop off in activity as we move deeper into the fall, but prices shouldn’t decrease anytime soon.
Next, we need to address the absorption rate, or how quickly the given supply of homes tends to sell. In the past year, the absorption rate got larger and larger, meaning that we had fewer and fewer units available. We currently have about half a month of inventory; in other words, if we don’t get any more homes on the market, we’d sell out of what is available in half a month. This shows that people are still buying homes, which is another indicator that the market isn’t slowing.
Many sellers wonder whether they should buy now or wait to sell, having heard rumors about an impending market crash. Waiting isn’t the best choice, however. Since inventory is low and prices are continuing to rise, the best move is to jump in and participate instead of waiting on the sidelines.
If you have any other questions about the market, don’t hesitate to give us a call or send us an email. We’d love to help you.