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UtahRealEstate.com reports that 81% of the home sales along the Wasatch Front sold for under $500k in 2020. Here's the pie chart from their report.
These numbers do not paint the whole picture or represent the market today. I conducted a few studies of my own using the Wasatch Front Regional MLS. Here's what you need to know.
First, these numbers relate to all homes along the Wasatch Front, including condos, twin homes, townhouses, etc. The numbers look quite different for 2020 if you only include detached single family homes; under $500k = 70%, $500k - $999,999 = 27% and over $1,000,000 = 3%.
Second, these numbers have changed a lot this year; under $500k = 59%, $500k - $999,999 = 36% and over $1,000,000 = 5%
Third, the current numbers (April 2021) are even more amazing; under $500k = 53%, $500k - $999,999 = 42% and over $1,000,000 = 5%.
Fourth, if you only include Salt Lake, Utah and Davis counties, the median price for a detached home is currently a little over $500k and the median home is about 2,600 square feet and includes four bedrooms. That means that homes are selling for over $500k more often than under $500k currently. It breaks out like this; under $500k = 49%, $500k - $999,999 = 46% and over $1,000,000 = 5%.
Fifth, in 2019 only 1% of home sale prices were over $1,000,000. In 2020, 2% of the sale prices were over $1,000,000. In the first quarter of 2021, 3% of the sale prices were over $1,000,000 and now 5% of the sale prices are over $1,000,000.
Sixth, on average homes are currently selling for 5% above ask price and are going under contract in 5 days, generally with multiple offers.
Seventh, I don't believe we have ever seen increases like this in our market. These numbers are simply amazing. Are they sustainable? That's a question for another blog.
Thanks for reading!
- Jeff Jorgensen
Very interesting stuff!