How has the market changed since 2006? Let’s take a look back at some market trends from across recent years.
How has our real estate market changed over the recent years?
Let’s begin by looking at the median sales price. After rising consistently in the early 2000s, the median sales price reached an initial peak in the third quarter of 2007 of $216,000. After that, the median sales price rapidly declined until bottoming out at $173,000 in 2011’s third quarter.
Since then, we’ve had a significant increase in median sales price. As of this year’s third quarter, the statistic sat at $270,000. This constitutes a $20,000 increase from just one year ago.
Next, I’d like to share what happened in terms of inventory over that same period of time. The number of homes listed peaked out in 2007’s third quarter at 24,112. In the third quarter of 2012, inventory bottomed out at 12,884. Inventory has risen slightly since then, but has generally stayed fairly level over the past four or five years.
This helps to explain the housing shortage we’ve seen lately. A lot of buyers have come into the market over the last six or seven years but the number of homes listed hasn’t increased to match demand. This has been a major factor in driving up sales price.
In 2006, the number of homes sold was 11,912. The lowest point we’ve seen in recent years occurred in 2010, when only 6,017 homes sold. This statistic peaked last year at 13,019 homes. Since then, the number of homes has dropped for the first time in several years. The decrease was not significant, but is something to keep an eye on as we move forward.
The number of days homes are spending on the market has remained virtually the same as last year, changing from 15 days in 2016 to 16 days this year.
Next, let’s take a look at the percentage of new listings that actually sold. In 2016, 77.55% of all listings that came on the market sold. This percentage is down to 71.08% today.
I think it’s also important that we look at the median asking price for listings on the market. This doesn’t reflect what homes actually sold for, but instead gives us an idea of what the seller’s asked for. Since last year, this number has seen a significant increase. In 2016 the median asking price was $265,000. Now, the median asking price is $299,000.
As we mentioned earlier, homes are actually generally selling at a median price of $270,000. This indicates that many sellers are likely overpricing their properties. This can lead to sellers getting even less in the long run.
By all shapes and measures, the market is in a strong place. The economy here in Utah is strong and the unemployment rate is significantly low. This makes it an exciting time to be in the real estate business.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.