As residents in Utah know, the past year has had a profound effect on the Utah housing market.
The latest market numbers show Utah’s market is unlike any other state in the country, with the median price of a home in Utah being $475,000, up nearly 30% from May of 2020.
Homes are only on the market for an average of six days, down from 17 days in May of 2020. Also, Utah has ranked the number one housing market in the country yet again for jobs, mortgage rates, taxes, and much more.
Most buyers tour many houses, and it’s not uncommon to submit ten or more offers before one is accepted. Park City is no exception, and we have seen an incredible surge in demand for homes in the area. For those looking to sell, there is no time like the present!
Migration from Big Cities
The housing market is an issue that’s worrying a mind-boggling 8 out of 10 Utahns — and one that reaches well beyond Utah to other states in the West.
The COVID-19 pandemic spurred out-migration from big cities like New York and San Francisco in 2020. Most of these people moved to more rural and natural areas, particularly out west into towns like Park City.
Utah ranked No. 5 for the most significant change in net in-migration in 2020, up by 4.7%, putting Utah on the national map with other states like New York, Connecticut, and Massachusetts.
While net in-migration increased most in smaller metros around New York City, such as Hudson and Kingston, in-migration also rose in what the New York Times labeled “vacation areas,” like Park City, Utah.
One interesting statistic is that over 500,000 people based in California were browsing the website UtahRealEstate.com last year, according to Dave Robison, president of the Utah Association of Realtors.
“We don’t have that many homes for sale, but we had half a million looking from California,” he said. “Half a million.”
Sky Rocketing Prices
Housing prices across the Wasatch Front have skyrocketed over the past five years, especially over the past year, augmented by the pandemic. The prices have shot up by double digits, according to the Salt Lake Board of Realtors.
In Salt Lake County, the median single-family home price climbed to $468,000 in the first quarter of 2021, up to $68,000 or 17% from a year earlier. In Park City the market is changing rapidly, reach out to us for your own personalized market report.
“Sold” signs are flying as homes sell at blazing speeds. Now is historically one of the best times to sell in Utah. Wasatch Front homes were on the market a median of five days in the first quarter of 2021, a massive drop from 28 days in the first quarter of 2020. Buyers now have to make one of the most significant decisions of their lives in a matter of hours — without the luxury of waiting a few days before deciding to submit an offer.
But this is excellent news for sellers, as many are receiving above the asking price cash offers for their homes!
Another interesting thing to consider is the record lumber prices plaguing buyers with a nearly 400% hike in the essential component for homebuilding in just the past year.
The fever of home buying and renovation movement in Utah and around the country, driven by consumers throwing off the shackles of pandemic-induced home isolation, has lopsided the market and led to price increases that were 374% higher than the same time last year.
This makes new homes very expensive to build and purchase, making older homes more competitive in the market than usual.
Interest rates are also historically low right now, with the average rate on a 30-year fixed mortgage is 3.03% with an APR of 3.25%. Since almost everyone who buys a house chooses to finance some portion of it, it is significantly easier for buyers to purchase a home at this time.
Industry experts expect these interest rates to increase, so it is the perfect time to put your house on the market. No one knows how long this seller’s market will last, as it is one of the most purely seller-based markets we have seen in a while.
These are historic times in the real estate market. Selling your home has never been easier–or more profitable–than now. If you’re on the fence, talk to a real estate professional for an expert opinion.
As always, if you’re looking to list a home in the Park City area, consider using Jensen and Company for all of your real estate needs. Jensen and Company is a locally-rooted community pillar that can help you make the right decisions in this monumental step in your life.