2021 Utah Housing Forecast - Recap

One of the most common questions we hear as Realtors® when we have clients considering a move to our state is, "What is the market out there like?"

2020 was a strange year, indeed, and we all were caught by surprise when Utah continued to witness a growth in jobs and population resulting in a exceptional year for Salt Lake's housing market and our best year in overall residential sales.

But now begs the question, "What will 2021 look like?"

Each year, the Salt Lake Board of Realtors hosts an annual economic forecast with James Wood, an economic specialist at the Policy Institute of The University of Utah. Mr. Wood, for many years, has conducted multiple studies on Utah's economy and local housing market conditions and this year, his findings help us to predict what we, as Utah homeowners and Realtors®, can expect to see in 2021.

A brief summary:

2020 Was the Best Year for Salt Lake's Housing Market in Overall Residential Sales

Resulting Factors:

"Population and Employment growth are key drivers of the demand for housing."

• Utah has the most rapidly growing job market in the country. The number of jobs in Utah declined by just over 1% in 2020 (national decline rate is around 6%).

• Utah ranks #1, by population growth, in the nation.

Salt Lake County's Housing Shortage:

• Creation and growth of new households exceeding the increase of housing units, resulting in a deficit of 5,500 units
• Sales and Prices: "In 2020, the median sales price of a single-family home in Salt Lake County increased by 11.8% to $425,000" with the average "DOM" reaching an all-time low of 12 days. Multiple offers, bidding wars, and sales prices well above asking, prove that the demand is exceeding supply.
• Federal Reserve cut interest rates to avoid a national recession resulting in a high demand for housing to push up pricing.

2021 Economic & Housing Prediction: A Strong Post-Pandemic Rebound

• Employment Growth at 3.8% - predictions of a statewide increase of 58,000 jobs
• Salt Lake County Employment Recovery - nearly half of all jobs in the state and 40% of the state's population are located in Salt Lake County
• Tight Labor Market Returns - predictions of Utah's unemployment rates dropping below 3.5%
• Continued historically-low interest rates
• Total number of home sales will reach 19,500, high home prices may, unfortunately, exclude some potential buyers but an increase of out-of-state buyers, due to remote career opportunities, is in the forecast.

Download the FULL REPORT HERE.

Pro Tip:  Offer to share this full report with your clients!