You May Be Busier Than Ever in Utah’s Hot 2021 Real Estate Market
Despite the onset of the COVID-19 pandemic last year, the Utah real estate market has exploded, even ranking first in December’s Housing Heat Index. In 2021, markets across the state are forecasted to continue that upward arc. With an influx of new residents, strong job growth, and rapidly rising prices, real estate agents all across Utah should gear up for another booming year.
2021 Utah Real Estate Outlook: Hot
In November 2020, the average home in Utah was priced at $383,216, a whopping 9.9% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 8.5% within the next year. Rising prices are largely due to an influx of homeseekers streaming in from California and other states, signaling that this year could be profitable for agents and sellers alike.
Along with rising home prices, home inventory statewide reached record lows in November 2020, dropping 56.0% year-over-year. Despite the waning number of homes for sale, closed sales statewide were actually up 20.0% in October 2020. This incredibly strong demand despite seriously limited supply across the state firmly designates Utah a seller’s market as 2021 unfolds.
After the economic tribulations of 2020 and in the midst of a national big city exodus, rent prices increased only 3.4% state-wide and even decreased 4.8% in the Salt Lake City area. Meanwhile, a total of 0.5% of Utah homeowners fell delinquent on their mortgage, the second-lowest rate in the nation, and equity slipped into the negative on only 1.5% of homes statewide. So, while new transactions boom and attractive rent prices draw more and more people to Utah, current homeowners continue to thrive as well.
2020 Utah Real Estate Market Data
|Zillow Home Value Index||$383,216|
|1-Year Change on Home Values||+9.9%|
|1-Year Change on Rent Prices||+3.4%|
|Homes With Negative Equity||1.5%|
|Delinquent on Mortgages||0.5%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Utah
In November 2020, the Utah Department of Workforce Services reported the state’s seasonally adjusted unemployment rate, one of the lowest in the nation, at 4.1%. Compared to the national figure of 6.9%, Utah’s job market shows significant strength. As healthy economic activity often correlates with growth in the real estate industry, narrowing unemployment rates are a promising sign for agents the year ahead.
In fact, due in part to the strength of the job market, Utah is now one of the fastest-growing states in the nation. In December 2020, the population was up 15.5% despite the lowest number of births in 21 years. As people continue to work and school from home, placing new emphasis on loving where they live, it’s no wonder the Beehive State is all the buzz.
Despite the traditionally hot spring and summer buying seasons far behind us, closed sales were up 20.0% in October 2020. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming colder months. Buyers are still eager to commit, even without the draw of spring curb appeal and warm-weather open houses.
With an unbelievably strong 2021 forecasted, Utah real estate agents will need to be at the top of their game. From buyers brand new to the state to sellers fielding multiple offers, there has never been a better time to serve your fellow Utahans. This year, agents can expect to benefit from and help contribute to a booming local and national economy as the Utah real estate market burns even hotter.
Take On 2021 With the Best Utah Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Utahans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Utah? Join the Mountain West Real Estate Facebook Group!