Summit Sotheby's International Realty Quarter Two Market Report by Summit Sotheby's International Realty

QUARTER TWO MARKET REPORT 2021

TABLE OF C ONTENT S 2021 Q2 MARKET REPORT

OVERVIEW

MAP

ALL AVAIL ABLE INVENTORY

PROPERTIES SOLD

TOTAL SOLD VOLUME

AVER AGE DAYS ON MARKE T

MONTHS SUPPLY OF INVENTORY

AVER AGE AND MEDIAN SOLD PRICES

MARKET REPORT QUARTER T WO 2021

Welcome to Summit Sotheby’s International Realty’s Quarter Two Market Report. This report takes a look and reviews Utah’s current real estate market conditions for the Wasatch Front, Wasatch Back and Southern Utah areas. US Economy The US economy is in the midst of a “reflationary recovery” dynamic, with pent-up demand for goods, services, and raw materials in full swing. The real GDP projection is now at a whopping 7.4%, as the economy snaps back at an ever-increasing rate. While there are some inflationary pressures, as noted by a CPI increase of 5.4% year over year, economists seem to agree these will be “largely transitory”. Many expect profits to rebound strongly and exceed pre-pandemic levels before the end of 2021. US Real Estate Market The residential housing market is a sizable chunk of the US GDP, roughly 5%. And demand for housing is still outpacing supply. A Fed rate hike is not on the table anytime soon, a good sign for borrowers, and 30-year fixed rates recently fell to a 180-day low of an average of 2.625%. However, median home prices across the US have increased 24.4% in the last year while income only increased by 1.2%, adding to concerns that some home buyers may soon be priced out of the market. Home prices are still expected to rise, an additional 9% in 2021 and 3% in 2022. This may explain why the apartment market is booming this quarter, increasing by 207,035 units nationwide – a number that’s usually in the 40,000-80,000 range. The Utah Market Real estate inventory in Utah is now half of what it was in 2019 (15,471 available properties), with only about 7,871 residential properties on the market in June 2021. The buyer profile is also changing, with out-of-state buyers from larger city markets influencing the price of Utah real estate by what they are willing to pay, as opposed to traditional methods of pricing being determined by an analysis of sold comparable properties in the area. This has caused the average home price to climb faster than the national pace, with average prices increasing in one year by 31.8% along the Wasatch Front, 39.8% in Southern Utah, and 54.6% along the Wasatch Back.

THE ARE AS AREAS INCLUDED IN OUR Q2 MARKET REPORT

FARMINGTON

S A LT L A K E CIT Y

PA R K C I T Y

H EB ER C I T Y PR OVO

WASATCH BACK C EDA R C I T Y

CO U N T IE S : SU M M I T A N D WA S ATC H

WASATCH FRONT

CO U N T IE S : DAV I S , S A LT L A K E A N D U TA H

S P R I N G DA L E , ZION

S T. G EO R G E

SOUTHERN UTAH

CO U N T IE S : WA S H IN G TO N A N D IR O N

ALL AVAIL ABLE INVENTORY UTAH - DECEMBER 2018 - JUNE 2021

All Available Inventory Utah - December 2018 to June 2021 2018

2019

13,513

1,484

12,380

2,216

2,112

1,877

2,093

2,189

2,179

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

7,357

7,806

8,313

8,719

2,117

1,431

2,110

Jul

9,917

2,077

Jun

11,141

11,700

2,071

May

11,239

11,698

2,173

Apr

11,019 2,230

Mar

10,562 2,267

Feb

9,743

Jan

10,067

Dec

9,906

2,156

1,497

10,977

2,086

11,687

11,396

1,840

11,675

1,508

11,698

1,482

1,559

1,609

1,717

1,749

1,702

1,594

13,537

14,965 14,916

1,638

1,598

13,344

1,655

13,808

1,623

14,452

14,843

1,630

15,478 15,471 15,526 15,514

All Available Inventory is the total "# For Sale" that month. This includes any property that was on the market at any point during the month, as opp listed and sold within the same month. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 1 sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and Wasatch Counties. 'Southern Utah' includes Washington and Iron Co

summitsothebysrealty.com

DEFINING ALL AVAIL ABLE INVENTORY This metric gives us a glance of the total amount of properties for sale in Utah by month, from 2018 to present. Broken down by area, we see a steady decline in inventory, with consistent increases beginning in March 2021.

2020

2021

# For Sale - Wasatch Back

# For Sale - Wasatch Front

# For Sale - Southern Utah 13,006 12,275 11,664 10,538 9,749

1,220

767

743

839

6,126

7,263

1,376

1,120

1,015

973

1,004

975

996

1,005

1,099

5,491

1,468

5,275

1,661

4,266

1,848

4,289

2,021

4,493

2,164

5,571 2,181

5,962

856

6,209

947

1,071

1,025

6,579

7,278

7,153

7,684

8,407

8,759

9,322

9,720

9,290

7,089

810

7,871

7,716

5,539

1,386

1,596

1,668

1,663

1,395

12,866

1,528

13,412

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

posed to just the number of "For Sale at the End of the Month" which would be lower. This chart would capture any property that was 16th, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties ounties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

Q2 MARKET REPORT | Page 7

PROPERTIES SOLD UTAH - DECEMBER 2018 - JUNE 2021

Properties Sold Utah - December 2018 to June 2021

2018

2019

# Sold - Wasatch Back

# Sold - Wasatch Front

# Sold - Southern Utah 4,283

4,194 4,232

207

3,911

196

220

147

3,625

3,579

172

216

3,698 216

3,174

3,025

191

143

2,824

3,282

3,262 137

198

2,741

118

132

2,422

2,405 2,170

130

3,513

116

3,295

2,956

3,495

161

3,487 2,938

3,047 2,558

2,485

2,357

2,638

2,653 2,250

1,733

1,915

1,965

349

321

310

397

Dec

Jan

Feb

Mar

497

563

469

503

525

Apr

May

Jun

Jul

Aug

425

435

425

431

346

359

Sep

Oct

Nov

Dec

Jan

Feb

487

Mar

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold includes any p Back' includes all listings from Summit and Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davi

summitsothebysrealty.com

DEFINING PROPERTIES SOLD This metric calculates the number of properties sold, by month, broken down by our three key regions: Wasatch Front, Wasatch Back and Southern Utah. Spiking in July of 2020 with 5,111 properties sold, this chart shows the cyclical nature of Utah’s real estate seasons and the above average sales that marked the end of 2020.

2020

2021

5,111 291

4,704 4,711

4,553

333

183

390

4,616 405

4,105 3,901 3,844 313

3,471

261

3,798

382

3,430

286

3,474 190

242

2,910 100

4,122 3,742

3,790

3,682

2,517 3,579

191 3,058

2,939

2,628 166 3,316 2,968

3,008

2,626

2,839

2,419 1,947

391

453

Apr

May

580

Jun

698

Jul

629

639

632

Aug

Sep

Oct

2,043

530

454

379

419

Nov

Dec

Jan

Feb

562

544

Mar

Apr

445

528

May

Jun

property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch is, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

Q2 MARKET REPORT | Page 9

TOTAL SOLD VOLUME UTAH - DECEMBER 2018 - JUNE 2021

Total Sold Volume Utah - December 2018 to June 2021

2018

2019 Total Volume - Wasatch Back

Total Volume - Wasatch Front

Total Volume - Southern Utah

1.75B 1.55B

143M

242M

99M

136M

175M

203M

165M

168M

183M

151M

158M

152M

123M

130M

180M

1,053M

138M

186M 738M

1,025M

964M

1,158M

1,115M

1,321M

1,347M

1,262M

1,104M

102M

688M

908M

160M

141M

1.15B

123M

616M

1,328M

134M 842M

1.38B

1.05B

0.95B 0.86B

1.42B

881M

168M

1.21B 1.10B

1.36B 239M

246M

1.51B 246M

241M

1.57B

204M

1.72B

142M

232M

1.51B

210M

1.74B

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold includes any Back' includes all listings from Summit and Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davi

summitsothebysrealty.com

DEFINING TOTAL SOLD VOLUME This metric defines the total dollar volume of real estate sales by area. The Wasatch Back experienced exponential sales growth in 2020, with sales volume more than doubling when comparing to the same time period in years prior. The Wasatch Front and Southern Utah areas also saw growth patterns during this period. June 2021 has had the highest sold voulme at 2.51 Billion, surpassing any month from last fall.

2020

2021 2.51B

2.48B 2.47B

419M

553M

509M

201M

Oct

Nov

Dec

Jan

Feb

1,792M 1,459M

Mar

Apr

May

277M

189M

Sep

225M

199M

Aug

274M

245M

Jul

287M

264M

963M

1,516M

1,284M

290M

278M 262M

881M

1,374M

1,343M

1,564M

1,594M

1,612M 244M

Jun

286M

217M

172M

1,155M

1,554M

122M 150M

958M

1,734M

95M

1.35B

1.23B

May

1.95B

1.45B

1.42B

Apr

441M

2.13B

270M

645M

2.10B

1.99B

200M

1.97B

2.33B 620M

474M

413M

2.33B

538M

2.43B

Jun

Q2 MARKET REPORT | Page 11

AVER AGE SOLD DAYS ON THE MARK E T UTAH - DECEMBER 2018 - JUNE 2021

Average Days on the Market Utah - December 2018 to June 2021 138

135

140 130 120 110 100

113

119

106

118 111

106 102

101

93 85

101

52 39

50 35

Aug '19

58 45 44

Jul '19

Jun '19

47 38

45 41

20 10

Feb '20

Jan '20

Dec '19

Nov '19

Oct '19

Sep '19

May '19

Apr '19

Mar '19

Feb '19

Jan '19

Dec '18

Nov '18

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold include Back' includes all listings from Summit and Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' include

summitsothebysrealty.com

DEFINING AVERAGE SOLD DAYS ON THE MARKET This metric follows the amount of days a property is available for sale. In all areas, we see this average number in steady decline. Cash of fers, ef ficient financing and robust buyer demand are driving forces in this trend.

Sold Avg DOM - Wasatch Back

Sold Avg DOM - Wasatch Front

Sold Avg DOM - Southern Utah

116 101 92 87 77

20 19

16 15

Jul '21

Oct '20

29 29

Jun '21

May '21

26 25

Jun '20

Apr '21

May '20

Apr '20

Mar '21

Feb '21

Sep '20

Aug '20

Jul '20

Jan '21

Dec '20

Nov '20

100

Mar '20

es any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch es Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

Q2 MARKET REPORT | Page 13

MONTHS SUPPLY OF INVENTORY (MSI) UTAH - FEBRUARY 2019 - JUNE 2021

Months Supply of Inventory Utah By Region 2.4

7.3

8.0

1.9

7.4

2.0

1.7

8.8

8.7 5.7

6.3

4.4

Southern Utah

2.3

6.1

7.0

May

Jun

Jul

Apr

Mar

Feb

2.6

Nov

2.9

3.5

3.3

Oct

3.0

Aug

3.0

9.5

4.2

3.8 3.2

1.7

6.5

4.3

3.2

10.0

Jan

7.4

1.8

2.3

Dec

1.9

2.1

2.6

3.1

Feb

2.5

Sep

Wasatch Back

Wasatch Front

2019

Months Supply of Inventory refers to the number of months it would take for the current inventory of homes on the market to se

2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Su 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

summitsothebysrealty.com

DEFINING MONTHS SUPPLY OF INVENTORY (MSI) This metric is defined by how long (in months) it would take to sell all available properties currently on the market. Generally speaking, any where from four to six months of inventory is considered balanced. With each of Utah’s key selling regions well below this range, sellers

y (MSI)

have a key advantage due to the lack of properties for sale given the current sales pace.

2020

2021 MSI

2.0

1.0

1.9 1.4

1.2

1.1

1.0

13.0

1.0

0.9

0.8

0.6

0.7

0.6

15.8 13.3

2.1

2.3

1.3

1.2

2.4

2.7

1.9

2.0

1.9

1.6

1.9

0.9

0.8

0.7

0.8

Mar

3.9

3.1

Feb

4.2

Jan

7.0

2.0

3.7

1.0 May

Apr

1.3

Dec

1.5

Nov

1.1

Oct

Sep

1.5

Jul

Jun

May

Apr

Mar

1.8

Aug

2.4

ell given the current sales pace. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, ummit Sotheby's. 'Wasatch Back' includes all listings from Summit and Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties.

Q2 MARKET REPORT | Page 15

AVER AGE AND MEDIAN SOLD PRICES WASATCH FRONT

Average & Median Sold Prices Wasatch Front

31 . 8%

Average and Median sold prices for residential housing along the Wasatch Front have increased over the last 2 years. ONE Y E AR INCRE ASE IN T HE AVER AGE SOL D PRICE $540,386

540K

Avg Sold $ - Wasatch Front

Median Sold $ - Wasatch Front

520K 500K 480K

$467,035

460K 440K 420K 400K

$410,021 $383,083

380K

$364,778

360K

$340,350

Jul '21

Jun '21

May '21

Apr '21

Mar '21

Feb '21

Dec '20

Nov '20

Oct '20

Sep '20

Aug '20

Jul '20

Jun '20

May '20

Apr '20

2021

Mar '20

Feb '20

Jan '20

Dec '19

Nov '19

Oct '19

Sep '19

Aug '19

Jul '19

Jun '19

May '19

2020

Jan '21

340K

Data is aggregated from the WFMLS, and was pulled on July 16th, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

summitsothebysrealty.com

AVER AGE AND MEDIAN SOLD PRICES WASATCH BACK

Average & Median Sold Prices Wasatch Back

54 .6%

Average and Median sold prices for residential housing along the Wasatch Back have increased in the years.ASE IN T HE AV ER AGE SOL D PRICE ONElast Y E A 2R INCRE $1,688,710 Avg Sold $ - Wasatch Back

1800K

Median Sold $ - Wasatch Back

1600K

1400K

1200K

$1,000,000 $1,092,172

1000K

$965,791 $729,610

$752,500

Jul '21

Jun '21

May '21

Apr '21

Mar '21

Feb '21

Dec '20

Nov '20

Oct '20

Sep '20

Aug '20

Jul '20

Jun '20

May '20

Apr '20

2021

Mar '20

Feb '20

Dec '19

Nov '19

Oct '19

Sep '19

Aug '19

Jul '19

Jun '19

May '19

2020

Jan '21

600K

Jan '20

800K

Data is aggregated from the PCBAOR, and was pulled on July 16th, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and Wasatch Counties. Prepared By Summit Sotheby's International Realty.

Q2 MARKET REPORT | Page 17

AVER AGE AND MEDIAN SOLD PRICES SOUTHERN UTAH

Average & Median Sold Prices Southern Utah

39. 8%

ONEAverage Y E AR INCRE ASEMedian IN T HE AV ER AGE SOL Dfor PRICE and sold prices residential housing in Southern Utah have increased in the last 2 years. $524,094 520K

Avg Sold $ - Southern Utah

Median Sold $ - Southern Utah

500K 480K 460K

$435,450

440K 420K 400K 380K 360K

$374,912

$351,674

340K

$335,000

320K

Jul '21

Jun '21

May '21

Apr '21

Mar '21

Feb '21

Jan '21

Dec '20

Nov '20

Oct '20

Sep '20

Aug '20

Jul '20

Jun '20

May '20

Apr '20

2021

Mar '20

Feb '20

Jan '20

Dec '19

Nov '19

Oct '19

Sep '19

2020

Aug '19

Jul '19

Jun '19

$314,000 May '19

300K

Data is aggregated from the WCMLS and was pulled on July 16th, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Southern Utah' includes Washington and Iron Counties. Prepared By Summit Sotheby's International Realty.

summitsothebysrealty.com

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All Available Inventory is the total “Number For Sale” that month. This includes any property that was on the market at any point during the month, as opposed to just the number of “For Sale at the End of the Month” which would be lower. This chart would capture any property that was listed and sold within the same month. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby’s. “Wasatch Back’ includes all listings from Summit and Wasatch Counties. ‘Southern Utah’ includes Washington and Iron Counties. ‘Wasatch Front’ includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby’s International Realty. ©MMXXI Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each Office Is Independently Owned And Operated. Copyright© Summit Sotheby’s International Realty 2021.