Salt Lake City Real Estate Market is Healthy, Balanced

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Real estate markets go in cycles. They appreciate, slow down, equalize, and then appreciate again. Investing in real estate is not just about location, it’s about timing as well. There are good investments in any real estate market, but when you buy while the market is appreciating, you’ll ride a bigger wave than if the market is slow.

The Salt lake City real estate market doesn’t seem to follow national trends. The closest historical gauge of the future of our market seems to be looking at California’s market and plan on the opposite. In the early 1990’s, as California’s market crashed Salt Lake soared. During the tech boom, and until around 2005 California’s markets boomed and we were slow. Since 2005 as California has gone soft- we have been very strong. This seems to be the natural order of things…

Anytime the market appreciates as we have been doing- there becomes a growing speculation about where the market is headed and when it will slow. Sellers are the last to see things slow, and buyers find any reason to think the market is slowing and want to find the deals, even while the market is very hot.

Currently Salt Lake has a great real estate market. Prices continue to be strong, which is good for sellers- but there are a lot of good homes on the market, which is good for buyers. Prices continue to appreciate, which is good for everyone (except those who sit and watch).

Tons of jobs are moving into the area, which is one of the reasons the market is strong.  This type of market is good for both sides and is a balanced market. My advice for anyone in the market to buy or sell real estate is get one of the best agents in the business to help you and you’ll do very well.

First-time buyer price range (under $250,000) is always the strongest, and now FHA loans go up to $320,000 in Salt Lake county so that opens the doors for more people to buy. West Jordan, Taylorsville, Holladay, Cottonwood, and West Valley all seem to be strong right now. Southern areas such as Riverton, Herriman, South Jordan, Draper, Lehi, and Bluffdale seem to be a bit slower with so much inventory in the mid price ranges. Condos downtown are slower I think because of all the new condos being built and that are planned- many people are holding off for the new ones.

The mid-range market ($250-$500) seems to have a lot of inventory, but in some areas, such as Sugarhouse, Millcreek, and Canyon Rim there are some great homes that are selling fast in the $300-$400 range.

At least this is what I see with my team (we sell about a home every other day).

Here’s a current sales graph representing all homes listed in Salt lake County from Jan 1- July 5, 2007:

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Interesting point to notice- the price range that has had the second-most new listings this year is $500,000-$749,000 with 1808 new listings (but only 399 sales). By contrast, the $180-$199,900 range has had 1325 new listings and 803 sales.

The average priced new listing this year (Salt Lake County) has been $358,556.

Average days on market for the year (all price ranges) is 54 days.

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5 thoughts on “Salt Lake City Real Estate Market is Healthy, Balanced

  1. Have you looked into B of A’s ACORN program for first time buyers? Maybe your market doesn’t have the same need as this high priced one.

    I think that region still has a few years of heating up ahead it.

    I hear that people are building like crazy up in my old neighborhhod of Summit Park.

    Good to have you back from – another vacation?

  2. I’ve noticed the homes in my neighborhood seem to be selling faster now than they did in spring. Seems to me we are still in a seller’s market. I’m thinking of selling my home next month and I’m sure it will sell fast because of it’s condition and upgrades, but I will price it higher the last home sold in my area. I think buyers want it to be slow so they can get a good deal.

  3. Greg,

    I’m sure the statistics you quoted here and in other entries are from our amazing WFRMLS. I’ve come to realize the days on the market is just not accurate because a high % of agents expire their listing sometimes 2 and 3 times to get a new MLS # and show less days on the market. Of course good agents look at the tax ID to see all listing when evaluating a property for our buyers, so this doesn’t fool us. That being so our DOM form the WFRMLS is not reliable and should not be considered a true statistic or be use to evaluate the current market. If the MLS would lump all listing from a tax ID that don’t have a 30 day off market time in them as one marketing it would be accurate. Of course they wouldn’t do anything that makes sense. Like remove short sales from the public side of the market until the owner can preform and has agreement from the bank! I wouldn’t quote DOM as a statistic off the WFRMLS data. I would bet the true # is probably much higher 25% or more.

  4. Tom,

    You make some good points- and part of the problem with averages in general is that there are always factors that sway the numbers.

    Many of the homes that show as expired actual sold, but just after the listing expired, or the office administrators (or agent) didn’t update the MLS when it happened. For instance, two days ago I noticed that the MLS showed I had two listings under contract from quite a while ago. They had been sold weeks ago, but the MLS showed them as under contract because the office administrator obviously didn’t change the MLS when they should have. I have many listings that expired according to the MLS, but actually sold after the expiration deadline. So that affects the number of solds and makes the expired ratio look higher- and I’m sure this happens to many people. There are a few homes I sold last year that the MLS says the listing agent sold, when I actually represented the buyer- the agent/broker simply put themselves as the selling agent instead of me.

    There are certainly plenty of things that can make the numbers off, but people like to know stats and averages, and they can be helpful in seeing trends.

  5. Hi Greg,
    Commenting on agents expiring, I know some do it just to lower the days. The comments I get the most from other agents is about expiring when doing a price correction.
    My thoughts are that is the days on market when priced properly.

    If a home is listed for 100 days at $250,000 and then the price is corrected to $225,000 and then sells in 45 days. In my opinion it took 45 days to sell. The key is when priced correctly.
    So if an area’s average DOM for solds is 48 and pendings are 52 and you are 90 days, then you are not priced correctly.

    Basically I am working with what I have

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