QUARTER THREE MARKET REPORT 2021
TABLE OF C ONTENT S 2021 Q3 MARKET REPORT
4
OVERVIEW
5
MAP
7
ALL AVAIL ABLE INVENTORY
9
PROPERTIES SOLD
11
TOTAL SOLD VOLUME
13
AVER AGE DAYS ON MARKE T
15
MONTHS SUPPLY OF INVENTORY
17
AVER AGE AND MEDIAN SOLD PRICES
MARKET REPORT QUARTER THREE 2021
Welcome to Summit Sotheby’s International Realty’s Quarter Three Market Report. This report reviews and compares Utah’s current and historical real estate market conditions for the Wasatch Front, Wasatch Back and Southern Utah areas. US Economy The US economy posted modest gains in the third quarter, even while consumers began to slow spending. While Q2 brought a dramatic snap-back of the US economy post-pandemic, Q3 was characterized by bottlenecks, supply chain problems, the Delta variant and an equity market pullback in September. The GDP projections have also been tempered to 5.7%, down from the 7.9% projections last quarter, with talks of the accommodating financial policies beginning to unwind next year. Inflation continues to be an issue at 5.4%. The Fed has stated that the current inflation spike is a product of supply constraints colliding with the very strong demand. US Real Estate Market The residential housing market is a sizable chunk of the US GDP at roughly 5%. Simply stated, demand for housing is still outpacing the shrinking standing supply. Mortgage rates remain at rock bottom, adding to demand by eager first-time home buyers. These buyers are seeing historically high home prices, however, with values rising at the fastest rate since the 1970’s. The median home price nationally climbed up 13. 3% year-over-year to $352,800. This marks 115 straight months of year-over-year increases. Unlike housing bubbles which imply an over-inflated market, the current conditions shape up as more of a boom. Market conditions are very dif ferent from 2007, with qualified and verified buyers driving the demand paired with a genuine shortage of supply. Housing prices are expected to stay elevated with further single digit percentage increases likely if more supply doesn’t come to market in 2022. The Utah Market Utah is becoming a magnet for in-migration with many looking to improve their quality of life and enjoy an overall lower cost of living. Utah is one of two states that has a fully recovered job market, post pandemic. The only other state is Idaho. Increasing from $385,000 to $490,000, the Salt Lake City metro area ranks second nationwide for year-over-year median sales price increases at +27. 3%. Ranking first is Boise, Idaho which increased from $369,990 to $476,587, 28.8%. Along the Wasatch Front the average sold price has increased year-over-year by 21.1% to $544,282, 33.2% in Southern Utah to $535,141 and 25.1% along the Wasatch Back to $1,690,706. Standing inventory statewide is still low, but September saw an increase to 8,586 units for sale up from the low of 6,278 earlier this year. This low standing inventory is at 57% of levels two years ago (14,965).
THE ARE AS AREAS INCLUDED IN OUR Q3 MARKET REPORT
FARMINGTON
S A LT L A K E CI T Y
PA R K CI T Y
H EB ER CI T Y PR OVO
C EDA R CI T Y
WASATCH BACK
CO U N T I E S : SU M M I T A N D WA S ATC H
WASATCH FRONT
CO U N T I E S : DAV I S , S A LT L A K E A N D U TA H
S PR I N G DA L E , ZION
S T. G EO R G E
SOUTHERN UTAH
CO U N T I E S : WA S H I N G TO N A N D I R O N
ALL AVAIL ABLE INVENTORY
All Available Inventory
UTAH - JANUARY 2019 - SEPTEMBER 2021
Utah - Jan 2019 to Sep 2021 2019 16K
13,513
13
11K
1,482
11,396
10K
10,977
1,431
1,508
11,698
1,497
12K
12,380
1,395
12,866
1,484
1,559
1,609
1,717
1,749
1,594
13,537
14,965 14,916
1,638
13K
1,655
14K 13,808
1,623
14,452
1,702
14,843
15K
1,630
15,478 15,471 15,526 15,514
2,117
2,216
2,112
1,877
2,093
2,189
2,179
2,181
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
7,357
7,806
8,313
9,743
10,067
9,290
2,110
Jul
6K
8,719
2,077
Jun
9,917
2,071
May
11,141
2,173
Apr
11,239
11,700
2,230
11,687
11,698
2,267
Mar
11,019
2,156
Feb
10,562
2,086
Jan
8K
7K
11,675
9K
5K
4K
3K
2K
1K 0K
M
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 opposed to just the nu aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed as sold Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's Interna
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 2019 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 9,803
1,220
688
1,011
984
1,013
1,040
1,158
1,277
1,428
1,430
6,468
969
6,917
1,018
6,350
1,123
5,803
1,379
5,781
1,468
5,471
1,661
4,397
1,848
4,401
2,021
4,591
841
6,278
2,164
5,633
8,586
801
7,644
8,683
870
958
6,328
7,564
770
859
6,688
1,079
1,031
7,314
7,204
7,684
8,407
8,759
9,322
9,720
7,787
847
8,355
799
9,144
6,565
1,386
1,596
1,668
1,663
1,528
3,412
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
umber 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 d 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 ational Realty. Information not verifiable by the Park City Board of Realtors.
Q3 MARKET REPORT | Page 7
PROPERTIES SOLD
Properties Sold
UTAH - JANUARY 2019 - SEPTEMBER 2021
Utah - Jan 2019 to Sep 2021 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
3,698 216
3,4
216
3,174 3,025
191
3,282
3,262
198
137
79
2,910
143
100
2,741 132
2,422
2,405 2,170
130
3,513
3,495
161
3,487
3,295
116
2,956
2,938
3,047
2,9 2,558
2,485
2,638
2,653
2,419 2,250
1,733
1,915
1,965
321
310
Jan
Feb
397
Mar
497
563
Apr
May
469
503
525
Jun
Jul
Aug
425
435
425
431
Sep
Oct
Nov
Dec
346
359
Jan
Feb
487
Mar
391
45
Apr
Ma
Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby
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
4,167 3,901 313
471
262
3,844 382
286
263
4,122 3,742
3,790
3,682
2,517
3,489
3,924 243
3,709 258
191
242
2,628 166
191
3,579
3,373 3,058
939
ay
3,805
3,433
9
53
3,799
2,970
3,008
2,629
1,947
580
Jun
698
Jul
629
Aug
639
Sep
632
Oct
530
Nov
3,070
3,190 2,969
2,851
2,043
454
379
419
Dec
Jan
Feb
562
543
Mar
Apr
447
May
532
472
491
482
Jun
Jul
Aug
Sep
d 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 y's International Realty. Information not verifiable by the Park City Board of Realtors.
Q3 MARKET REPORT | Page 9
TOTAL SOLD VOLUME UTAH - JANUARY 2019 - SEPTEMBER 2021
Total Sold Volume Utah - Jan 2019 to Sep 2021 2019
Total Volume - Wasatch Back
Total Volume - Wasatch Front
Total Volume - Southern Utah
1.55B
122M
143M
158M
152M
123M
130M
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
150M
151M
Jun
180M
151M
881M
958M
1,053M
186M
183M
May
168M
Apr
165M
Mar
203M
136M
Feb
175M
99M
688M
738M
1,025M
964M
1,158M
1,115M
1,321M
1,347M
1,262M
1,328M 908M
1,104M
160M
141M 616M 102M
Jan
1.23B
138M
1.05B
0.95B 0.86B
1.42
1.38B
1.15B
168M
1.21B
1.42B 242M
1.36B 239M
246M
232M
1.51B
246M
241M
1.57B
1.75B
142M
1.51B
1.72B 204M
210M
1.74B
Mar
Apr
Ma
Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby
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 volume at 2.54 Billion, surpassing any month from last fall.
2020
2021 2.54B 2.48B 2.47B
419M
553M
509M
200M
392M
1.96B
1,616M
1,714M
1,645M
1,466M
1,517M
1,286M
May
258M
Apr
246M
Mar
262M
Feb
279M
Jan
226M
963M
Dec
274M
Nov
287M
Oct
201M
881M 245M
Sep
189M
264M
Aug
199M
262M
Jul
244M
286M
217M
Jun
1,823M
278M 1,374M
1,343M
1,564M
1,594M
1,612M
1,554M
1,734M
95M
1.35B
290M
1.45B
1,155M
172M
2.31B
436M
1.99B
1.97B
2B
ay
442M
2.13B
434M
2.10B
2.34B 2.35B
271M
645M
2.33B
620M
474M
413M
2.33B
538M
2.43B
Jun
Jul
Aug
Sep
d 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 y's International Realty. Information not verifiable by the Park City Board of Realtors.
Q3 MARKET REPORT | Page 11
AVER AGE SOLD DAYS ON THE MARK E T UTAH - JANUARY 2019 - SEPTEMBER 2021
Average Days on the Market Utah - Jan 2019 to Sep 2021 140
138
135
130
118
120
110
100
116
113
119
111
106 102
101
101
98
100
93
90
85
80
82
82
70
60
59
50
45
60
45
44
40
57
56
58 52
39
30
50
47
33
34
54
53 47 37
35
62
60
35
38
45
50
46
46
53 39 44
41
30
2
20
10
Apr
Mar
Feb
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
Jan
2020
0
Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheb
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
101
97
87
85
77
64
55
54
53 45
30
28
38 32
26 26
25
45
38
40 29
28
27
37
29
25
20 19
18
18
16
16
16
15
15
Jul
40
Jun
31
52
May
50
47 31
74
73
Apr
53
17
20 19
Sep
Aug
Mar
Feb
Jan
Dec
Oct
Sep
Aug
Jul
2021
Jun
May
96
92
Nov
0
d 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 by's International Realty. Information not verifiable by the Park City Board of Realtors.
Q3 MARKET REPORT | Page 13
MONTHS SUPPLY OF INVENTORY (MSI) UTAH - JANUARY 2019 - SEPTEMBER 2021
Months Supply of Inventory (MS Utah By Region 2019 2.6
Wasatch Front
2.5
2.4
1.9
1.8
1.9
2.0
2.0
2.3
2.3
2.1
2.0 1.7
1
1.7
13.3
10.0 7.4 5.7
6.3
4.4
6.1
7.0
6.5
4.3
4.2
3
3.1
Dec
Nov
Oct
Apr
Mar
Feb
Jan
2.6
2.9
3.9 3.5
3.3
3.2
Aug
3.0
Jul
3.0
Jun
3.2
May
Southern Utah
3.8
Mar
7.3
9.5
8.7
Feb
7.4
8.0
8.8
Jan
8.4
Sep
Wasatch Back
15
Months Supply of Inventory refers to the number of months it would take for the current inventory of homes on the market to sell given the current
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 an Sotheby's International Realty. Information not verifiable by the Park City Board of Realtors.
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
SI)
have a key advantage due to the lack of properties for sale given the current sales pace.
2020
2021
MSI 1.0
1.9
13.0
1.1
1.1
1.0
1.0
1.0
1.0
0.9
1.0
0.9 0.6
0.7
0.7
1.9
2.0
0.8
0.9
0.9
1.6
1.5
1.6
1.6
Sep
1.2
Aug
1.4
5.8
7.0 4.2
3.1
2.1
2.3
2.4
2.7
1.9
2.0
1.9
1.6
1.8
1.5
2.4
1.2
1.5
Jul
1.0
Jun
0.7
0.8
May
0.8
Apr
Jan
Dec
Nov
0.9
Mar
1.1
1.3
Feb
1.5
Oct
1.2
Sep
1.3
Aug
1.5
Jul
Jun
1.8
May
Apr
3.7
sales pace. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold includes any property nd Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit
Q3 MARKET REPORT | Page 15
AVER AGE AND MEDIAN SOLD PRICES WASATCH FRONT
2 5 . 1%
Average & Median Sold Prices Wasatch Front 540K
$544,282
Sold Median $ - Wasatch Front Avg Sold $ - Wasatch Front
520K
500K
$480,000
$452,369
480K 460K
440K
420K
$385,401
400K
380K
$395,000 $379,467
360K
$344,000 Oct
Jul
Apr
Jan
Oct
2021
Jul
2020
Apr
Oct
$337,300
Jan
340K
Data is aggregated from the WFMLS, and was pulled on October 10, 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
28 . 2%
O N E Y E A R I N C R E A S E I N T H E AV E R AG E S O L D P R I C E 1900K 1800K
Avg Sold $ - Wasatch Back
Median Sold $ - Wasatch Back
$1,690,706
1700K 1600K 1500K 1400K
$1,454,624
1300K
$1,156,303
1200K 1100K
$1,140,854
1000K
$1,002,500
900K
$740,000 $805,000
$720,000
Oct
Jul
Oct
Jul
2021
Apr
Jan
Oct
2020
Apr
700K
Jan
800K
Data is aggregated from the PCBAOR, and was pulled on October 10, 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. Information not verifiable by the Park City Board of Realtors.
Q3 MARKET REPORT | Page 17
AVER AGE AND MEDIAN SOLD PRICES SOUTHERN UTAH
33. 2 %
Average & Median Sold Prices Southern Utah $535,141
550K
Median Sold $ - Southern Utah Avg Sold $ - Southern Utah
$498,514 500K
450K
$445,500
400K
$389,555
$355,396 350K
$315,500 $301,868 Oct
Jul
Apr
Oct
Jul
2021
Apr
Jan
Oct
2020
Jan
300K
$355,624
Data is aggregated from the WCMLS and was pulled on October 10, 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
OUR OFFICES 175 0 Park Avenue Park Ci ty 62 5 Ma in Street Park Ci ty
362 N M ai n Street Heber Ci ty
545 Main Street Park Ci ty
8020 Vi c tor y Ran ch Roa d Vi c tor y Ran ch, Kamas
Mont Cer v in Pla z a #10 5 Deer Va lley ® , Park Ci ty 1 8 35 Three Kin g s Drive, #70 S ilver S ta r, Park Ci ty 8 41 7 E Ran ch Club Trai l Dri ve Prom on tor y, Park Ci ty 7085 G le nwild Dri ve Glenwild, Park Ci ty
1260 E Stri n gham Avenue, Sui te 100 Sugar Ho use, Sal t L ake Ci ty 870 East 90 0 South 9 th & 9 th , Sal t L ake Ci ty 13693 South 20 0 West , Sui te 10 0 Draper 15 1 N M ai n Street An cesto r Square, St . Geo rge
summit s otheby srealt y.com
“All Available Inventory” is the cumulative total number of units that were on the market for sale during the calendar month, as opposed to units remaining available for sale at month end. “Properties Sold” includes any property listed as sold for the respective calendar month in the respective MLS, and is not restricted to properties sold by Summit Sotheby’s. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was compiled on October 15th, 2021. Information not verifiable by Park City Board of Realtors®. “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.