A new report from international real estate company RE/MAX show that, yes, indeed, the Salt Lake City home market is hot.
Among its findings, the latest RE/MAX National Housing Report ranked the local market as No. 1 for the fastest-selling homes in the United States. The report, which surveyed 53 metro markets throughout the U.S., including Salt Lake City, found that the average Salt Lake City home sells in just 16 days.
The survey also found that Salt Lake City homes sales are up 9.4 percent over last year and that homes are selling for 17.8 percent more money than a year ago.
RE/MAX also reported that one of the root causes of the skyrocketing numbers is based in the current inventory of homes available for sale. The one month’s supply of homes on the market is down 73 percent from a year ago.
“In addition to the supply-and-demand reality, the market has been amplified by COVID,” said Josh Horner of RE/MAX Masters in Salt Lake City. “A new phenomenon also occurred — multiple offers, all above ask price, are being submitted for almost every home on the market. As Realtors in Salt Lake and Park City, our new normal for all price ranges is competing against dozens of other offers, all of which are above the asking price and many times waive important due diligence or appraisal protections to make their offer stand out.”
Horner offered an example: “We recently found a home for a client looking in the $500,000-to-$600,000 range; they had over 70 offers,” Horner said. “Yes, 70 offers. The norm for a good home is 20-30 offers.”
Horner also cited the influx of out-of-state buyer as contributory to the inventory shortage.
“There is a strong local demand for housing,” Horner said. “However, we see more and more out-of-state money drowning out local buyers.”