Salt Lake City Real Estate Market Exploding

Second quarter Salt Lake City real estate sales will close strong this year with a promising number of home sales already under contract by June 6. Some areas of Utah’s capital city fared better than others in May compared to May 2013 sales and pricing; however, the rewards of most Realtors’ spring showings will be realized by the end of June in impressive numbers.

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April Utah Home Sales Slow, Prices Up

April Utah house sales dipped a little this year compared to last with a slight decrease in the number of home sales, but a significant increase in home prices.

The median home sales price in April was $206,000, a total of $6,000 higher than the 2013 median price. The median cost of 2014 homes per square foot in April was $96.85 compared to $93.67 per square foot in the same month in 2013.

Analyzing Utah home data from one time period – say, one month – is tricky. There are so many factors that can influence fluctuation in a market in such a short period of time. The data can be misleading; however, it helps to compare April to the same time frame throughout the years to get a clearer picture of market conditions.

Looking Back on a Wild Ride

Things had begun to turn ugly when for the U.S. housing market in 2005 when what we had come to know as “the housing bubble” burst. Home buyers, home sellers, mortgage lenders and the entire industry had enjoyed a wild ride on surreal success in the years just preceding the burst.

In 2006 the market continued to grind down. Home prices tumbled, but so did sales and the results were proving disastrous. A total of 1,259,118 foreclosures were filed in 2006 (that was 42 percent higher than in 2005, according to Realty Track, a real estate information company.

In January 2008 the National Association of Realtors (NAR) announced the largest drop in existing home sales in 25 years had occurred through 2007. The announcement came days after a significant downturn in the stock market. The global stock market was volatile as it attempted to correct itself. Fears of a U.S. recession loomed and eventually proved valid.

In 2009 3,957,643 foreclosures were filed on 2,824 properties (21 percent more than the year before). Foreclosures inched up in 2010 when foreclosures were filed on 2,871,891 properties, according to RealtyTrac’s year-end report.

By the end of 2010 more than 2.23 percent of all households were experiencing foreclosure at some level.
In 2011 foreclosures began to slow. It was still a sticky situation for 1.45 percent of all households who were in some stage of foreclosure, but it was less than the 2.23 percent we saw a year earlier. In 2012 the foreclosure notices slowed further. Home sales began to perk up.

Finally, 2013 showed us substantial appreciation in single-family home sales. A strengthening economy boosted consumer confidence, the jobless rate decreased, historically low interest rates had greased the wheels and the housing market began to find its new normal.

Utah’s April Home Sales

What does all of that history have to do with our statistical comparison today? As we look back on year-to-year sales, it’s interesting to note the sordid market trends nationwide compared to Utah’s history. There is no question Utah was deeply impacted by heavy hits to the housing and construction industries; however, our state is recovering nicely and record fluctuations in the housing market are not nearly as deep as those experienced in many other states. Spring seems to be the home sales season in Utah and this year the tradition continues.

Following is a history table reflecting April home sales in Utah for the past five years. We saw a notable increase in sales in 2013, but sales have slowed a little this year. That’s not too concerning in and of itself considering a $6,000 increase in the median sold price of homes. It’s much healthier for the market to grow slowly and steadily. I’m encouraged by the steady growth in prices and feel confident conditions will continue to improve.

April Utah Home Sales Year-to-Year

Mdn OL $ = Median Original Listing Price
Mdn Sold $ = Median Sold Price
Mdn S to OL = A comparison between the Median Sold Price and the Median Original Listing Price
Mdn SQ FT = Median Square Feet
Mdn $/SQ FT = Median Price Per Square Foot
Mdn CDOM = Median Current Days on Market

Interest rates are still low, consumer confidence is up and the national job market is beginning to take shape. This is a good time to buy a home. If you are ready to buy a Utah home for sale, contact me at 801-673-3333 and let’s see how we can take advantage of existing conditions. Let’s make sure we use them to put you in the best possible position.

Browse all Utah homes for sale listed in the Wasatch Front Regional Multiple Listing Service (WFR-MLS) at www.allutahhomes.com.

Public Fast-Charger Goes Live in Salt Lake County

Editor's note: The following is a press release originally published by Salt Lake County News Service.

SALT LAKE COUNTY —Partners from Salt Lake County, the Utah Clean Air Partnership (UCAIR), the state of Utah and others recently unveiled the first ever electric fast-charging station for public use along the Wasatch Front. It is located at 2001 S. State Street. The installation is part of a coordinated effort to improve air quality—in this case, by supporting the alternative fuel vehicle market.

Salt Lake County Mayor Ben McAdams, UCAIR Director Ted Wilson, and Utah State Energy Advisor Cody Stewart said today’s “first” is the result of local and state government coming together on steps to eliminate the bad air days that occur during winter inversions. McAdams said Salt Lake County received grants totaling $39,600 from UCAIR and the state for installation of ABB, Inc.’s DC charging station, which has a 480v rate that is able to charge in 10-40 minutes.

“Owners of electric vehicles—which produce zero tailpipe emissions—need infrastructure so that they can conveniently drive longer trips. We’re stepping up to support that individual choice, which helps everyone breathe cleaner air,” said Mayor McAdams.

The Salt Lake County Council’s five Republicans and four Democrats supported the effort.

Councilman Richard Snelgrove said, “One person can make a difference in improving air quality. This is a good example. I appreciate Mayor McAdams’ leadership on this issue.”

UCAIR is a nonprofit, statewide clean air partnership. Ted Wilson, UCAIR Director, said the organization’s goal is to make it easier for individuals, businesses and communities to make small changes to improve Utah’s air.

"My congratulations to Mayor Ben McAdams and the County Council for recognizing that electric vehicles are now practical and friendly to our delicate air. I am sure the county parking lots will soon be filled with electric vehicles,” said Wilson.

Cody Stewart, Utah Governor Gary Herbert’s energy advisor said, “Diversifying our transportation options here on the Wasatch Front and throughout Utah will be essential as we strive to advance our clean air goals, and electric vehicles will play an important role. I’m pleased that our Governor’s Office of Energy Development has been able to partner with the County and UCAIR to make this exciting project happen.”

McAdams noted that since electric vehicles (EVs) emit no tailpipe pollutants, they cut down on the small particulate emissions that elevate health risks when trapped in valley air during winter inversions. The Utah Department of Environmental Quality says that vehicles contribute 57 percent of PM2.5 pollution. Besides the air quality benefit, McAdams said that driving an EV is likely to save over $1,000 annually in typical energy costs.

The partners say that additional electric-charging stations will be installed by Salt Lake City in the coming weeks, adding more re-charging options for EV drivers.

McAdams says the cost of using the county’s charging station will be a $2.00 flat fee and 20 cents per kilowatt (kw) plus tax. Experts say that’s about $5 to charge the battery to about 65 percent.

Park City, Deer Valley Year-End Stats Look Great

by Joel Carson
President/Principal Broker
Utah Real Estate
SLBR 2012 'Salesperson of the Year'

Home sales in the Park City and Deer Valley areas increased 18.44 percent in 2013 compared to the number of homes sold in 2012. We’re seeing these kinds of numbers all over the state and it’s great to see just how much things are looking up.

A report from the Wasatch Front Regional Multiple Listing Service (WF-MLS) notes a total of 282 homes were sold in 2012. That’s when we saw a mind-blowing 35.58 percent increase in home sales over 2011 when only 208 Park City homes and Deer Valley homes sold. The growth slowed somewhat from 2012 to 2013 when 334 homes sold throughout the year. Slow, steady growth is more desirable than false housing bubbles that confuse the market, so I’m encouraged by what I see.

Those of us in the real estate industry often look at “current days on market” (CDOM) for housing market health indications. Granted, no single statistic will tell us how the local housing market is fairing; but, when you look at the big picture including how fast homes are selling, how many homes sell, the price at which they sell, and new inventory, it’s easy to get a good feel for the current situation.

Park City, Deer Valley Homes Sold Faster in 2013

We saw the market begin its recovery in 2011 when the median CDOM was 127 days. That’s a long time to wait for a home to sell and it has a tendency to make people nervous. In 2012 that number decreased by 14.17 percent to 109 days. In 2013 the median CDOM was just 87 – that’s 20.18 percent faster than in 2012.

Buyer Beware, Prices Rising

In 2011 the median home price in the Park City/Deer Valley area was $462,500. Now, that’s obviously higher than the state median home price; remember, we’re talking about world-class resorts here where high-dollar homes are in good supply. Believe it or not, that price was disconcerting to some homeowners (because it was low for the area). In 2012 the median home sold price increased 8.7 percent to $502,750. We all said, “That’s better.” In 2013 the median home sold price climbed to $590,000 (a 17.35 percent increase). For the time being, it’s nowhere but up from here. Prices in the area can still be considered bargains; and, interest rates are still very appealing. The bottom line? It’s time to buy. Please note in the stats chart that the median asking price for homes was $725,000.

Inventory Holding Steady

Park City’s home inventory, and Deer Valley’s inventory is holding steady. New listings were up slightly in 2013 compared to 2012 (.74 percent higher). In 2013 a total of 544 new listings came on the market at a median asking price of $725,000.  Of the new listings added in 2013, 61.40 percent sold.

In 2012, homeowners listed 540 homes on the WF-MLS. The median asking price was $675,000 and 52.22 percent of those sold.

In 2011, WF-MLS added 626 new listings at a median asking price of $685,000. Yes, the asking price was higher than what we saw the following year; but then, only 33.23 percent of those listings sold.

The inventory in these areas of Summit County is looking good and we’re seeing the market come back into balance.

If you are in the market for a Park City home for sale or a Deer Valley home for sale, please visit www.allparkcityhomes.com today. If I can help you find that vacation home, an executive home for sale or the perfect family home, call me at 801-673-3333. I’m here to make sure you find the right Utah real estate for you.