If you’ve been sitting on the fence, now is the time to make a move in the real estate market. There are two statistics, in particular, that you need to understand before making any real estate decision that will also prove why it’s such a great time to buy or sell right now.
Our favorite stat in real estate is the absorption rate. When we discuss inventory, we talk about it in terms of time. When homes sell, they’re taken out of the inventory count, and this affects the number of houses for sale and how much time it would take to sell them. A balanced market has four to six months’ worth of inventory, meaning that if no other properties came onto the market, it would take four to six months to sell them all.
Currently, the Salt Lake City market has only two weeks of inventory—well below that equilibrium of four to six months’ worth. If all listing activity ceased today, there would be no more homes to purchase after just two weeks. We’ve never seen inventory this low. Properties are selling very, very quickly.
The second stat to know is the daily snapshot. This shows us a comparison of real estate activity today versus the same day last year. The numbers included in the snapshot are active listings, pending listings, properties under contract, and the number of properties sold.
For example, there are a little over 1,200 active listings on the market right now, while that number was over 2,400 at the same time last year. Inventory has decreased by 50% in a year. Interestingly, the number of homes under contract has increased by 37%, which means demand has risen. This is the perfect storm, especially for sellers.
This is why we love stats—they equip us as real estate professionals to help you position your offer well and succeed in this hyper-competitive market. We’re seeing multiple offers on every house, sometimes more than 10! If you’re well-positioned, you get the best shot of winning the property you want.
Some would think that in this type of market a seller can price their home however they like, or just sell it themselves. However, buyers use professional real estate agents, so sellers who overprice will end up selling for less. Use a professional agent as a seller to help you maximize the value of your property and avoid mistakes, such as simply taking the highest-priced offer that may not be supported by an appraisal. An agent can help you make the best decisions.
We would love to go to work for you. If you’re sitting on the fence and unsure what to do, reach out to us via phone or email. We’ll show you how we’ll add more value to your transaction and reach or exceed your real estate goals. We look forward to hearing from you.