Real estate nationwide is booming right now, and Utah’s housing market is no different.
Whether you’re looking for a new home, want to buy an investment property, or are ready to sell a house in Utah, you’re probably wondering what your next move should be. Navigating this post-pandemic real estate market can be tricky, so here’s everything you need to know about the housing market in Utah in 2021.
Why the Boom in Utah’s Housing Market?
Home prices in Utah are rising at an alarming rate. According to a recent article by the Deseret News, median home prices in Salt Lake City rose 17% from early 2020 to early 2021, with other counties in the state rising over 20%. An average home in Salt Lake City cost $300,000 in 2017. Today, buyers are paying $468,000 for the same house. What’s spurring this massive increase in Utah’s housing market?
There’s no doubt that the COVID-19 pandemic played a major role. Much like the rest of the country, the state of Utah remained fairly untouched by the virus until mid-March of 2020. Then the economy essentially shut down, and people stopped selling houses for a period of time. Springtime is usually a very popular time for people to sell, but not in 2020. The real estate market came to a screeching halt, with very few houses being sold in the second quarter of the year.
The major slowing of the real estate market led to a drop in interest rates. As stay-at-home orders ceased and life slowly resumed to normal, many investors started taking advantage of record-low rates. Many residents of large metropolitan areas like Los Angeles, New York, and San Francisco began relocating to smaller, less populated areas like much of Utah. Rural Heber City, Utah, for example, quickly made its way onto the New York Times list of metropolitan areas with the highest net in-migration from 2019 to 2020.
Utah’s Housing Market Today
The demand for houses in Utah quickly outgrew the number of homes available for sale, hence the skyrocketing home prices and sped up sales. Homes today are being sold faster than ever. Last year homes sold in an average of 28 days but today, that number is down to 5. Most homes are getting several offers within the first 24 hours of hitting the market, and many of the offers are above the asking price.
It’s safe to say the market in 2021 remains stronger than ever, with little chance of a market crash. After all, there is still a housing shortage. There are few homes available with a huge number of buyers looking for houses.
HoneyHomb is Here
Here at HoneyHomb we understand the importance of having an experienced partner by your side as you navigate Utah’s housing market. That’s why we are here to simplify the home buying and selling process for clients in Sandy, West Valley, Salt Lake City, and the surrounding areas in Utah. Our expert real estate team is here to help you every step of the way, whether you’re looking for your next home or ready to sell the one you’ve already got. Buy and sell the HoneyHomb way. Get started today!