September inventory gains did not hold as things picked back up in October for Salt Lake County. New listings continue to trail 2019, as sellers continue to be conservative with their plans to move up and the seasonal aspects of the housing cycle begin to take effect. Listings Under Contract increased and Monthly Inventory declined as an abundance of Buyers and limited supply continue to be presence. Lending is staying stable as rates hover just below 3%.
This first graph shows the # of Active Listings and those Under Contract. This represents 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 concerns of increased contract cancellation rate. For Buyers, it means 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). South Jordan (84009) had the most Active Listings at the end of October, 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 planning 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 October, while West Jordan (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 planning to sell.
This 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). The gap in listings has slowly continued to decrease from our high in June of 10%, as we approach a 6% deficit in listings for the year at the end of October.
This graph shows the average Selling Price and the # of Days on Market for listings that sold in October. Excluding Cooperton, Midvale (84047) had the lowest DOM (44 days) and avg price of $355K and South Salt Lake (84115) being just a little more expensive at $359K but homes sat 2x as long (89 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, as all zip codes but Downtown SLC turned back to red. In September it appeared things may have been softening, but that appearance did not become a new trend. 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) still has the highest Months of Inventory dropping to at 8 months, while West Jordan (84084) and Sandy (84094) had the lowest at just over two weeks of inventory in each zip. If you are a Buyer and do not have a preference on location or if you do not like competing, again consider looking downtown. 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.
- All graphical information is collected from UtahRealestate.com.