Utah Real Estate Market Trends

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Q2

2021

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Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. Historical Utah real estate data and trends are included below the latest update. We break down our data by county, but we cover major cities in this region including Salt Lake City, West Valley City, Provo, and West Jordan.

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Q2 2021 Gardner Report

Utah
Real Estate Market Update

by Matthew Gardner

Below is the latest Utah housing market trends analysis. Additional links:

Historical Utah Data
Colorado Data
Park City Data
Other Regional Data

 

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

Utah’s impressive post-COVID job recovery continues unabated. In the first quarter Gardner Report, I reported that the state had not only recovered all the jobs that were lost due to the pandemic, but employment was continuing to rise. This trend has continued. With 96,400 jobs added over the past year and 14,500 over the past quarter, total employment is now 26,900 jobs higher than the pre-pandemic peak. The only other state in the country that has recovered all the jobs lost due to COVID is Idaho. With a full recovery in the job market, it’s no surprise the jobless rate dropped further to 2.7% in June—its lowest level since March 2020 and the second-lowest rate in the nation; only Nebraska is lower at 2.5%.

utah Home Sales

❱ In the second quarter of 2021, 9,689 homes sold, representing a modest 1.2% increase year over year, and a very significant 42% increase compared to the first quarter of the year.

❱ Sales activity rose in four counties but dropped in three. Summit County saw a massive increase in sales. Wasatch County also saw impressive gains. Sales dropped most in Morgan County, but because this is a very small market I’m not concerned.

❱ What aided the jump in sales from the first quarter was an increase in listing activity. Inventory of available homes rose more than 50% compared to the first quarter. Although this is good news, listing activity is still down more than 55% from this time a year ago.

❱ Pending sales rose across the board compared to the first quarter, with significant increases in Utah, Davis, Salt Lake, and Wasatch counties. With pending sales up more than 30% from the prior quarter, there will likely be solid growth in closed sales in the upcoming quarter.

A bar graph showing the annual change in home sales for various counties in Utah.

utah Home Prices

A map showing the real estate market percentage changes for various counties in Utah.

❱ A rock-solid economy and low mortgage rates had buyers out in force. That said, even with supply levels improving, demand is still outpacing supply, which has led to significant price gains. Year over year, the average home price in the region rose 41.8% to $578,648. Prices were 8% higher than in the first quarter of 2021.

❱ Although the data shows remarkable home price growth, the pandemic had a significant impact on housing during the second quarter of last year. As such, I anticipate the yearly change in prices will soften in the third quarter but remain well above the long-term average.

❱ Home price growth was led by Wasatch County, but rose by very significant rates across all the counties contained in this report. Of note is that Summit and Wasatch counties saw average sale prices above the $1 million level in the second quarter.

❱ The takeaway here is that, while the number of homes on the market did improve relative to the previous quarter, there continues to be a shortfall in inventory, which has led prices to rise at a significant pace.

A bar graph showing the annual change in home sale prices for various counties in Utah.

Days on Market

❱ The average number of days it took to sell a home in the counties covered by this report dropped 28 days compared to the second quarter of 2020.

❱ Homes sold fastest in Davis County, with sales occurring in less than two weeks in an additional four counties. The greatest drop in market time was in Summit County, where it took 63 fewer days to sell a home than it did a year ago.

❱ During the second quarter, it took an average of only 19 days to sell a home in the region, which is down 14 days compared to the first quarter of this year.

❱ Days-on-market data provided further proof of the supply/demand imbalance mentioned throughout this report. Unfortunately, I do not see any signs of supply levels rising enough to meet buyer demand.

A bar graph showing the average days on market for homes in various counties in Utah.

Conclusions

A speedometer graph indicating a seller's market in Utah.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Strong economic growth—in concert with persistently low mortgage rates—continues to drive housing demand. Even with the increase in listings in the second quarter, many buyers are frustrated by the level of competition for the homes that are for sale.

It remains, undeniably, a seller’s market, and I have therefore moved the needle a little more in their favor.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Major Utah cities covered in this report:

Salt Lake City

West Valley City

Provo

West Jordan

Orem

Sandy

Ogden

Layton

South Jordan

Lehi

Millcreek

Riverton

Taylorsville

Murray

Draper

Bountiful

Herriman

Utah counties covered in this report:

Davis

Morgan

Salt Lake

Summit

Utah

Wasatch

Weber

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Gardner Report Archive

Utah
Historical Reports

2021
Q1 2021 Utah Market Trends

Q1 2021
POST | (PDF)

Q2 2021 Utah Real Estate Market Trends

Q2 2021
POST | (PDF)

2020
                    Utah Real Estate Market Update

Q1 2020
POST | (PDF)

                    Utah Real Estate Market Update

Q2 2020
POST | (PDF)

Market Trends Report Utah Q3 2020. Click to view full report.

Q3 2020
POST | (PDF)

Q4 2020 Utah Market Trends

Q4 2020
POST | (PDF)

2019
                    Utah Real Estate Market Update

Q1 2019
POST | (PDF)

                    Utah Real Estate Market Update

Q2 2019
POST | (PDF)

                    Utah Real Estate Market Update

Q3 2019
POST | (PDF)

                    Utah Real Estate Market Update

Q4 2019
POST | (PDF)

2018
                    Utah Real Estate Market Update

Q1 2018
POST | (PDF)

Q2 2018
POST | (PDF)

                    Utah Real Estate Market Update

Q3 2018
POST

                    Utah Real Estate Market Update

Q4 2018
POST | (PDF)

2017
                    Utah Real Estate Market Update

Q3 2017
POST | (PDF)

                    Utah Real Estate Market Update

Q4 2017
POST | (PDF)

These Utah real estate reports, data, forecasts, and market trends are provided for informational use. If you find it useful, please properly attribute this resource with a link. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City.