July continued to be a competitive month for real estate in Salt Lake County. New listings are trailing 2019, as sellers continue to be conservative with their plans to move up. Listings Under Contract are also climbing as Buyers are buying just about every listing coming on the market. Lending is staying stable as our government has continued to provide COVID relief. I have even heard tale of some Secondary Market, Jumbo Loan buyers coming back.
This first graph shows the # of Active Listings and those Under Contract. What this represents is a version of Supply (Active Listings) and Demand (Listings Under Contract) for Salt Lake County. Historically, Supply has always been higher than Demand, but the lines crossed just before COVID-19 started ramping and then again after the restrictions began lifting, and this divergence is only getting wider. For Sellers this is great, other than the increased contract cancellation rate. For Buyers, tight competition and rising home prices.
These two graphs represent the density of Active listings (left graph) and Ratio of Active to Under Contract Listings (right graph). Draper (84020) had the most Active Listings at the end of July, while Downtown SLC (84101) continues to have more Supply than Demand. This might be a useful graph when trying to understand what area might have less competition when looking to buy, or too much inventory when looking to sell, not that too much is really a thing right now.
These two graphs represent the Total # of New Listings for the Month (left graph) and the change in New Listings for that area compared to last year (right graph). Herriman (84096) again had the most New Listings for July, while Downtown Salt Lake City (84101) again had the biggest increase in listings year over year. This might also be a useful graph when trying to understand what area might have less competition when looking to buy, or too much inventory when looking to sell.
Here is a new set of graphs that shows the total number of Listings by Week (left graph) for 2019 and 2020, and then the Cumulative Number of Listings (right graph). From the end June to the end of July the gap between 2019 and 2020 increased from a 11% deficit to a 13% deficit in listing for the year.
This graph shows the average Selling Price and the # of Days on Market for listings that sold in July. Cooperton (84006) has the lowest DOM (40 days) and avg price of $330K and Downtown Salt Lake City (84101) is still affordable ($357K) but homes sit twice as long (88 days). Again, this points to selling and buying patterns for an area and is something to consider, if you do not have a preference for where you live.
Months of Inventory changed some this month with a few more zip codes turning red. Overall, this graph summarizes what we are seeing in many of the others graphs and feeling while helping Buyers find a home. Different sources give differing guidance, but the NAR states an average of 6 months means there is equilibrium of Buyers and Sellers in the market. Downtown Salt Lake City (84101) has the highest Months of Inventory at 19.8 months, while West Jordan (84084) again has the lowest, now right around a week of inventory. In fact, 10 of 36 zip codes in Salt Lake County are below one month of inventory. If you are a Buyer and do not have a preference on location or if you do not like competing, consider looking downtown. Now might be a great time to explore that area.
Anyway, thanks for your time. If you’d like to connect or share your thoughts, I can be reached via email at firstname.lastname@example.org.
- Zip codes do not reflect subdivisions, and any given subdivision could have completely different trend than the zip code it is in.
- Everything could change very quickly, in many different directions, depending on COVID and the Federal Government’s Response to it.