Welcome to Summit Sotheby’s International Realty’s Quarter 1 Market Report.
This report will take a look at Utah’s current real estate market conditions for the Wasatch Front, Wasatch Back and Southern Utah areas.
US Market Conditions.
Forecasts for the 2021 US GDP (gross domestic product) are ramping up. Economists agree and estimates are now at 5.7%. This number is up from 4.9% in February, 4.2% in January and 4.0 in December, respectively. All signs point toward these estimates rising further, reaching closer to the Fed’s 6.5% GDP growth forecast.
How the US Housing Market Fits In.
The residential housing market is a sizable chunk of the US GDP. Roughly 5% of the GDP is made up by our housing market. Coast to coast, the available inventory of homes listed has dropped by 51% over the past year. The lack of inventory is not due to homeowners choosing not to sell or taking their homes off of the market. Surging buyer demand is to blame, with available inventory being purchased quickly by a growing swell of qualified purchasers. Simply put, demand is outpacing supply. The number of new homes sold in the US jumped to 1,021,000 in March of 2021. This is a 66.8% increase from March of 2020, where 612,000 homes sold. Nationally, the median price of homes sold in March of 2021 was $330,800, with the average sale hitting $397,800.
Utah in the News.
Utah continues to make headlines not just for our state’s robust economy but for exponential population growth and a hot housing market. Metrics such as months of inventory, sales volume and average home prices continue to break records. This theme isn’t isolated to one region or city, with state-wide real estate demand holding steady, making for a highly competitive market for buyers and a highly lucrative market for sellers.