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Is Utah Housing Market Cooling Off?
Learn if Utah is a buyer's or seller's market, and where we're headed over the next year.
As your trusted real estate agent, I'm excited to share the latest insights on Utah's housing market inventory. If you have any plans to buy or sell a home in the near future, understanding the housing market climate will make all the difference in your approach.
First, let’s clarify what a buyer’s and seller’s market refers to.
Buyers Market = Sellers outnumber buyers which means buyers have more negotiation power and typically lower home prices.
Sellers Market = Buyers outnumber sellers which means sellers have more negotiation power and typically higher home prices.
Table of Contents
Long-Term Market Trends
Over the past year, we've seen significant changes in active homes for sale (i.e. housing “inventory”) across Utah. While inventory has jumped across the nation over the past year, it’s most helpful to compare to before the pandemic to get an accurate read on where the market is. Looking at the 7-year trends, we observe some interesting patterns.
What does this mean?
Well for starters, most of Utah is still below pre-pandemic inventory levels. From a definition standpoint, we’re still in a seller’s market. However, we’re no longer experiencing the extreme seller’s market of 2020-2022 and can feel like a buyer’s market when compared to the past couple years. In reality, we’re experiencing a more neutral, healthy market that will likely shift further into a sellers market as interest rates continue to fall in the coming months and years. Think of this as a pendulum. As demand increases due to lower interest rates and population growth, we swing further into a seller’s market. As long Utah has more buyers than sellers (i.e. more housing demand than homes for sale), Utah will remain in a seller’s market. To swing back into a full buyer’s market, we’d have to see 35,000 Utah home buyers disappear over night.
Tips For Buyers
The increase in inventory across much of Utah is good news for potential homebuyers. More homes on the market typically means:
Greater selection: You'll have more options to choose from, increasing the likelihood of finding your dream home.
Potential price stabilization: As supply increases, we may see a slowdown in the rapid price appreciation experienced in recent years.
Less competition: With more homes available, you may face fewer bidding wars and have more negotiating power.
Tips For Sellers
While inventory has increased, there are still opportunities in this market:
Proper pricing is crucial: With more options for buyers, it's essential to price your home competitively from the start, making your home the obvious choice.
Stand out from the crowd: Focus on making your property more attractive to potential buyers.
Consider timing: You’ll want to look at the average time a home sits on the market before getting an offer in your neighborhood to have accurate expectations for how quickly your home should sell.
Conclusion
Whether you're looking to buy or sell, now is an excellent time to take advantage of these changing conditions.
Remember, real estate is local, and conditions can vary significantly from one neighborhood to another. For personalized advice on your specific situation, please don't hesitate to reach out. I'm here to help you navigate this dynamic market and achieve your real estate goals.
Here to serve,
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PS…
Curious how I get a dozen families walking through your home giving real-time feedback on the first weekend your home hits the market? Happy to share my secrets, just give me a call :)