Real estate stats for the third quarter this year are quite interesting. Coming from considerably low home sales in Q2 2020, the numbers picked up as soon as COVID-19 restrictions eased up a bit. Real estate has proven to be a stable arena despite the pandemic’s undeniable impact. People are still out shopping for homes and prices are still continuously growing.
The stats are showing steady growth. That’s thanks, in large part, to three main factors: the pent up demand from Q2 2020, people’s desire to move to safer and quieter spaces, and the historic low mortgage rates. Let’s see how the Salt Lake City market performed.
Median Sold Price
Homes in Salt Lake City sold for an average of $384,000 during the third quarter of 2020. The average sold price in Q3 2019 was $348,000, while the price was $323,000 in Q3 2018. That’s around a $50,000 increase in equity in just two years.
The median sold price during this year’s second quarter is $369,150 and $362,430 during Q1 2020. That is around a $20,000 price growth just this year alone. That’s despite the fact that the economy has taken a hit due to the pandemic and many people lost their jobs.
The limited number of listings contrasted with the high demand propelled prices up. Demand stemmed from the people who took their chances to move during these very unprecedented times. Many were in search of safer spaces to call home, especially ones with more outdoor space and provisions for remote work.
Number of Homes Sold
One of the biggest jumps in stats was seen in the number of homes sold as the demand from Q2 2020 rolled over to the third quarter. As soon as people were allowed out, home seekers found the confidence to push forth with their moving plans. There were a total of 5,766 homes sold in the last three months, compared to Q2’s 4,530. Home sales are also up from Q3 2019’s 5,180 and 4,988 from Q3 2018.
Pandemic-related reasons also helped speed up movement in the real estate market. Former employees from prime locations such as New York, California, and Florida are moving to quieter, suburban areas. In-state relocations also affected the number of homes sold. Suddenly, living in downtowns and city centers doesn’t make much sense as many establishments remain closed for business. More and more people opted for a place away from the risks of catching the virus instead.
Median Days on the Market
Homes spent only an average of 11 days on the market before getting closed out. That’s 50% faster than in the same quarter last year. Some individuals who have fortunately retained their jobs were able to save up money towards a downpayment. That contributed to an increase in interested homebuyers.
Many people desired to move, and they wanted to move fast! The rise in demand meant more profitable options for home sellers. They can practically choose the best, most expensive deals from multiple home offers. This made closings in the last quarter a bit faster compared to the earlier months of 2020.
The historic low mortgage rates dipped below 3% in August. This helped spike up prices as more people applied for mortgages. A recent Bankrate forecast announced that rates are expected to remain low until the end of the year, although it’s not likely to go below 3% again as the economy starts to recover. It’s still a good idea to take advantage of these low rates for as long as you can.
If you’re looking to buy a home, it’s best to have a clear set of criteria for your desired property. Knowing exactly what you need could tremendously increase your chances of purchasing a new home. That can help you a lot in this cut-throat market.
If you want to learn more about the stats in your area or if you want to know how you can purchase your next home, don’t hesitate to contact me for advice. My services will always be available to you.