Is The Housing Market Starting To Shift?
Over the last year, the housing market experienced a historic boom. Prices shot up, inventory was scarce, and homes sold in record time. Now, it appears we’re seeing the first signs of the market balancing out. Here are three key factors to keep an eye on:
Number of homes for sale
Earlier this year, demand surged like we’ve never before. SunCrest homes were seeing 20 and 30 offers and being snatched up off the market quick, some without ever being formally listed. The number of SunCrest homes listed for sale each month has gradually been creeping up since May, and supply is slowly outpacing demand. In August, 21 homes were listed for sale, the highest since February.
Time it takes to sell a home
The days-on-market metric gives an indication of how hot a market is and how quickly homes are selling. In 2019, prior to the pandemic, it took an average of 21 days to sell a home in SunCrest. This is also starting to rise, though it currently still stands at a brisk 7 days.
Home price appreciation
Home prices have gone up dramatically over the last year and a half. In Utah, we averaged 32% appreciation in just one year. Some homes in SunCrest sold for more than $100K over their initial asking price. In August, however, the average final sales price of a SunCrest home dipped below the original asking price figure; we hadn’t seen that for six months.
It’s about perspective. Some predict a return to a more normal market, but keep in mind the big picture—there is no going back to a pre-pandemic world. The housing market is forever changed as more people choose to live in places like SunCrest. And even with these early indicators of more balance, it’s important to realize that compared to the last decade, the real estate market is still tremendously active. People love this neighborhood, so demand in SunCrest remains strong even as housing supply catches up and price appreciation settles into historic growth rates. In short, things may begin to calm down and it’s important to see the opportunity when buying or selling.