Here's a quick overview of our market and how it’s evolving.
Today we’ll give you a quick snapshot of what the market is doing right now and share some market statistics to help you make sound real estate decisions this year.
In December 2020, we saw about 200 more units sell than we saw this December. This trend has been consistent for the past few years. The average sales price has also gone up dramatically. It’s risen by about $40 per square foot, causing the total price to increase by about $100,000.
Alongside this year over year increase of 25% to 28%, inventory levels have continued to decline every year. Compared to this time last year, the amount of active inventory in Salt Lake County is 30% less than what it was then. The number of under-contract homes is also 18% less than last year. 25% to 28% is not a sustainable level of appreciation, so this spring, we expect to see demand drop off as prices remain high. This should allow inventory levels to rise.
We’re currently absorbing more homes in sales than are coming onto the market. This high level of activity and demand is what’s causing prices to increase so dramatically. We currently have 0.25 months of inventory, while a balanced market would have four to six months of inventory. We expect inventory levels to rise naturally as the year progresses.
If you’re an investor, you need to look at your goals and make a plan. We can help you with that. If you’re looking to buy or sell right now, you’ll want professional advice to position your offer or home. If you have any questions, reach out to us via phone or email. We look forward to hearing from you.