Housing Market 2022 Update for Utah
I haven’t written in a while. That’s probably because I have been so occupied representing Buyers and Sellers in a lightning fast paced real estate market in Park City, Utah. I know that’s no excuse, but given all the misinformation in the media outlets I can’t hold back any longer. I must chime in.
I am continually stunned by the misinformation circulating regarding the real estate market, especially the Utah real estate market. It’s all clickbait and half-truths. I’m here to give you the facts.
According to the Utah Association of Realtors® in the state of Utah, as of the end of May, 2022 vs. May of 2021:
1. New Listings have increased 7.5%
2. Pended sales have decreased 8.1%
3. Closed sales have decreased 7%
4. Median Home Price has increased 26.8%
5. Average Home Price has increased 21%
6. Days on Market (DOM) has decreased to 23 days from 25 days.
I ask you, does this sound like the Utah real estate market is crashing? I am still extremely busy helping clients purchase and sell real estate. In the last month I have closed two listings for over list price with multiple offers; pended two more listings with multiple offers; pended another listing in two days; competed in a multiple offer for a buyer on another home and won it.
The evidence seems pretty clear that we are heading into a recession. However, the reality is that just because there is a recession does not mean there is a housing market crash. Please get the facts. Large real estate companies are laying people off because they had flawed business models. Those layoffs do not indicate a real estate crisis. See the graph below from Keeping Current Matters:
For Buyers and Sellers alike keep in mind that with every 1 point increase in interest rates your purchasing power decreases by 10%. So, Buyers ask yourself this question: How long do I plan on being in this home? If this is the home you will stay in for many years, what if the value does go down temporarily for a few years? If you are staying in the home for ten years you will ride out that wave, IF depreciation does actually occur. Sellers, remember this factor when pricing. Pay attention to what buyers can afford and the most current market trends. Chances are you already have quite a bit of appreciation from that last two years. Don’t over price your property, but price it fairly and you will still do quite well. The frenzy is over. The days of pricing your property at 10% over the last closed sale from a week ago and getting multiple offers is over. Price competitively and the Buyers will come. Sellers be patient. Unless your home is the perfect 10 you may not get multiple offers or offers the first day. It could take a couple weeks or more. A healthy Utah real estate market is better for both Buyers and Sellers. It is the key to sustainability.
My personal experience over the last few weeks is that Buyers are more discerning. My last two multiple offers on my listings were presented eleven days and fourteen days respectively. Not the first or second day of being on the market like in April. What I have been experiencing first hand is a return to a more normal market. Like in 2019. We actually had a shoulder season in Park City this spring. And the locals LOVED IT. It was quiet. Few tourists in town. Spring was not a great time to list your property in the past. Perhaps we are reverting back when the real estate market was healthy and more equal between Buyers and Sellers. Wouldn’t that be nice?
The bottom line is that it is still a good time to buy and sell real estate. Think of purchasing real estate as a long term investment. Real estate is not the stock market. It is where you live.
In the words of the late and great Mark Twain, “Don’t wait to buy real estate. Buy real estate and wait”.
If you would like current statistics on a particular area in the Park City please reach out to me. I am happy to help and set the record straight. I will report facts, not clickbait.