June continued to be a hot month for real estate in Salt Lake County. With our local governments continuing to lift restrictions around COVID-19 and sellers extending their delay on upgrading to that new home. Buyers a consistently facing multiple offer situations, where the property sells far above list and much higher than it would have several months ago. Financing is still holding stable, even though some of the lending rules are becoming more conservative in the face of more economic uncertainty.
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. And Buyers are continuing to compete on any listing where it is priced right.
These two graphs represent the density of Active listings (left graph) and Ratio of Active to Under Contract Listings (right graph). Herriman (84096) had the most Active Listings at the end of June, 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.
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 June, while Downtown Salt Lake City (84101) 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.
This graph shows the average Selling Price and the # of Days on Market for listings that sold in June. Normally, one would expect as price goes up, DOM would trend in the same direction. Sugarhouse (84106) has the lowest DOM and is priced right near the average, while Downtown Salt Lake City (84111) is a more affordable but homes sit twice as long. 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.
With the Second Quarter coming to a close, there are now two data points to compare 2020 to historic Listing and Sales information. If the trend continues for Listings, Salt Lake will see remarkably similar activity to what was experienced during the Recovery Years (2010-2014) following the Great Recession. However for 2020 Home Sales, the line is siting right in the middle of the Pre/Post-Recovery Lines and the Recession/Recovery Lines. With more Buying then Selling, Salt Lake will continue to see raising prices and falling inventory.
One final new graph, Months of Inventory. This graph summarizes what we are seeing in many of the others graphs and feeling while helping Buyers go under contract. 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 & 84111) has the highest Months of Inventory at 9.2 months, while West Jordan (84084) has the lowest at just under a month. If you like living downtown, or you do not like competing, now might be a great time to explore that area.
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- 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.
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