In the always changing world of real estate, market data tell stories. They reveal market dynamics, buyer behaviors, and how the economy impacts the market. When we compare the real estate landscape of Utah in 2019 with that of 2024, removing the frenzied market data of the Covid years, we get an accurate picture of the market demand in the Beehive state.
Utah's real estate market was experiencing a strong seller’s market In 2019. Active listing inventory was low at 8,300, which in Utah is a limited supply of homes for buyers. Among these, 5,816 properties were under contract, signaling strong demand. Additionally, 576 properties were listed as backup, which means they are under contract but accepting backup offers, indicating an even stronger buyer demand. 109 homes successfully closed On March 13, 2019.
Five years later, following the Covid real estate frenzy, Utah's real estate market remains favorable for seller’s with a slight increase in days on market and often contributing to buyer concessions. Active listings decreased to 7,113, adding to the housing inventory shortage. The decline in properties under contract decreased slightly, to 4,298. This shift hints buyers are behaving with slightly more caution but remain interested in home ownership. Backup listings increased to 736, meaning more sellers would prefer a backup offer in place rather than going back on the market, should the original contract cancel. This strategy minimizes seller risk and new listing momentum.
Deciphering the Numbers: What Lies Beneath?
Market Dynamics:
The decline in both active listings and properties under contract suggests a tightening of the market in 2024, most likely caused by the higher interest rates than in 2020-2022. This translates into increased competition among buyers and keeps Utah a seller's market, where demand outstrips supply.
Buyer Behavior:
The decrease in sold properties point towards a more cautious approach among buyers. Factors such as rising prices, economic uncertainties, or changes in mortgage rates may influence this shift in behavior, prompting buyers to weigh their options more carefully. Buyers have become very savvy and will no longer overpay, and when in multiple offer situations it’s often about terms other than solely price.
Understanding these dynamics is important for buyers and sellers in order to navigate the market effectively. An experienced real estate agent will provide market data to guide their buyer and seller clients through the ever evolving market.
