1st Quarter 2021 Market Snapshot

Courtesy of Brent Haddock

Because the pandemic lockdown began in Mid-March of 2020, it's important to note the last two weeks of data from last March are COVID-skewed. Even though our market has more than recovered from the short-lived dip last April and May, March was the last month of what we used to call a "normal" market. The quarter-to-quarter numbers belie the definition of “normal.” Examples:

Single family homes in Park City Limits are up 94% in transactions, 163% in volume, 35% in average price, and 55% in median price. The median price is now over $3M for the first quarter of 2021.
In Summit and Wasatch Counties, single family sales were up 18% in transactions, 103% in volume, 72% in average price, and 84% in median price. The median price in Snyderville basin is now just under $1.6M for the first quarter.

Like the rest of the nation, inventory is at a record low. We'll delve into this in more detail in our Market Pulse, which publishes in a few weeks.

ACTIVE LISTING INVENTORY
Residential Properties & Land - Park City MLS

Inventory in Park City is still remarkably low. On April 9th, the inventory got down to 629 active listings, the lowest level in eight years, and 63% lower than the previous record.

We finally experienced a slight uptick in inventory toward the end of this month. Hopefully our market will exhibit the usual spring recovery inventory-wise, and we will see more available homes to help satisfy the strong buyer demand.

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Early signs for this coming summer suggest that there may be some relief on the way for the inventory-starved real estate market. According to a recent national survey conducted by realtor.com®, about 10% of current homeowners plan to put their homes on the market this year, which is a 25% increase over last year, and equals about 1.5 million more total homes.

Realtor.com's Senior Economist, George Raitu, recently stated that "there is a brighter light at the end of the tunnel for many weary buyers," and indeed, the

increased supply of homes could help attenuate the skyrocketing price increases that have characterized the recent market. Still, it is unlikely that we will experience a price drop, but rather just a flattening of price growth to more normal levels.

Raitu went on to say that "as we look to the year ahead, the demand wave will continue outpacing the supply inflow, even with more sellers coming to market,” and that “we will not solve a decade’s worth of underbuilding and lack of listings in one year.”
Source: Realtor.com®

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12 Month Rolling Year-Over-Year | April 2019 - Mar 2020 vs April 2020 - Mar 2021

Single-Family Homes

Condominiums

Vacant Land

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UTAH POISED FOR SIGNIFICANT PANDEMIC RECOVERY
Salt Lake Tribune - Tony Semerad

According to Tony Semerad of the Salt Lake Tribune, "Utah’s diverse economic engine not only weathered the pandemic, it also is poised to deliver a rebound that rivals any in the nation." The state's gross domestic product is now expected to grow by about 6.2% in 2021, which is exceptional considering ideal growth is usually between 2 - 3%. After entering the pandemic with one of the country's strongest economies and being recognized in the media for being the fastest in the US at job creation, our state unemployment rate is now at an enviable 2.5%.

According to weekly U.S. census surveys, nearly half of Utahns said they live in households where one or more members telework. Construction also boomed in Utah during the pandemic. According to the U of U's David Eccles School of Business, the value of the state's residential, commercial, and other construction in January topped $1.1 billion. Construction and real estate were also deemed essential services in Utah at the start of the pandemic; demand for housing and a pipeline of building projects have kept that boom going.

As noted in previous newsletters, large numbers of people are seeking suburban living in search of more rooms, home offices, or bigger backyards, while others are migrating to Utah from larger cities to find relatively less expensive real estate with more access to open landscapes and abundant outdoor recreation.

UTAH IS NOW THE FASTEST GROWING STATE IN THE NATION

This week, the Associated Press announced that Utah's population grew by 18.4% over the past decade, making it the fastest-growing state. We are now the 30th most populated state, with nearly 3.28 million people, according to U.S. Census Bureau data released April 26, 2021. Utah's population growth from 2010 to 2020 far outpaced the national figure of 7.4%. “It’s no surprise that Utah was the fastest-growing state in the nation over the last decade,” House Speaker Brad Wilson tweeted. “Our beautiful landscapes, business and family-friendly policies, and endless opportunities are hard to beat.”

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Look for the complete
Market Pulse Report: 1st QUARTER 2021
in your inbox in a couple of weeks!

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If you are considering selling your property, now is the time to explore your spring/summer options and ready your home for sale. Buyer demand may have lessened some of the typical "come to market" standards, such as waiting for your landscaping to show at its best. However, you'll still find that decluttering, staging, and beginning the packing process, as well as making necessary high-return repairs, will drive greater market appeal. Let us guide you through this process, address your timing concerns, and advise on the best pricing strategy to meet your goals.

If you are a buyer competing in this market, we will advise you on strategies that have proven effective at similar price points or in specific neighborhoods. The local norms have changed significantly over the past year. A successful acquisition now requires fortitude, determination, and creativity!

We continue to analyze our statistics weekly, masterminding within our brokerage and our community to ensure we offer all the tools and guidance you need. Please reach out with any and all questions. While there has likely never been a better time to sell, a proper come-to-market strategy is essential in these conditions. Those looking to buy need to be armed with new tools and techniques. Please reach out to let us help you navigate this new paradigm.

ZACH WHITE | Associate Broker
435.640.9722 | Zach@UtahLuxuryGroup.com
ZW UTLUX.com

Who you work with matters.

“I wouldn’t have sold my house without Zach. I had it listed with another agent for three years before and no offers. It wasn’t hard to understand with Zach what I really needed to do to get my home sold. He’s very honest and principled and I wish I had started out with Zach when I originally listed my home.” -Tim Boccia

All data derived from statistics provided by the Park City Multiple Listing Service.