SLC Market Change

11 Replies

The market is changing. Are you? 

Here in Salt Lake Lake City the market is slowing significantly.

Is this the same slowing down that we experienced last year at this time or is it something bigger?

SLC hit its peak in June of this year and has been on a steady downward slide since. 

The Fed is said to be raising interest rates a 1/4 of a point in early 2016, will this have an effect? No one knows for sure and with the upcoming election most think we aren't on track for a "correction." 

But its been significant enough in my business that I wanted to bring it to your attention.

If your in Utah and have a home on the market, reduce the price and get ahead of whats coming up.

Start working your system more effectively so that your not caught with your pants down if something bigger is on the horizon.  

Hi there @Jordan Atkin  I have been closely watching the Utah market especially the SLC metro area and i would not be quick to say that is it slowing down, i would not be quick to say that it is even leveling off. This is a great conversation you have started, Do you have some kind statistics that you can share with us to prove this. What type of real estate have you been looking at? What areas in SLC area have you been looking at?

@Jordan Atkin ,

     We have seen a leveling off in the Colorado market, at least around Fort Collins. Based on recent review of last years Volume from the mid July to Mid September to this year same time, we have seen roughly 56% reduction in Total Sales volume. I wouldn't say the market is slowing down, but I think we are starting to see a more realistic market. However we usually see a drop off in activity during this time frame. Just my opinion though.

Updated about 6 years ago

16 % not 56%

Originally posted by @Stuart Birdsong:

@Jordan Atkin ,

     We have seen a leveling off in the Colorado market, at least around Fort Collins. Based on recent review of last years Volume from the mid July to Mid September to this year same time, we have seen roughly 56% reduction in Total Sales volume. I wouldn't say the market is slowing down, but I think we are starting to see a more realistic market. However we usually see a drop off in activity during this time frame. Just my opinion though.

 But is sales volume down because the market is leveling off or there are no homes for sale? I am in Greeley and there is record low volume of listings. Anything that comes on the market and is priced somewhat close to what I think market value is is getting multiple offers in the first few days still. 

Hi @Jordan Atkin and welcome to BP.

Up here in the sticks, we're starting to see a bit of activity, finally.

Are you actually seeing price declines or just an end to the multiple offer bidding wars?  From where we are, SLC has looked frenzied all Spring and Summer.  This is not a correction but a softening.  It's very possible that all of the reasons that I've been saying that have been driving the exuberance have largely run their course:

  • The mad dash for first time home buyers and millenials to lock in the lowest interest rates ever
  • Investors who have wanted to sell for 7 years can finally get something reasonable for their relinquished properties

However, there may be a continued flight from the stock market and our job growth is still strong with people coming here for work.

It wouldn't be a bad thing if sanity returns.

@Mark Ferguson,

     I agree Mark, Thanks for the comment. In Fort Collins, Inventory has climbed quite a bit from the spring. However, this is arbitrary given how low it got in March and April. One thing we are seeing, Based on recent listings and showing activity, is that buyer activity is calming down slightly. However, it is still moving along at a fast pace. Having said that I do think Sales Volume has some relevance in the Macro sense. If the trend continues, it does't mean we are stepping into a slower market just a more stabilized market, Especially, since it has been so competitive for the last 3 years. These are just thoughts though. I'd love to hear yours as well.

I am not as active in Fort Collins, but here we are not seeing much of a slow down. We listed house yesterday that we thought the sellers had over priced a little based on condition and comps and we got an offer the first day listed. I keep thinking prices cannot keep increasing, but they seem to still be rising. We are not nearly as high as fort collins so it is possible many people who cannot afford fort collins or loveland are coming to greeley instead. 

@Mark Ferguson,

Agree with Mark - N. Colorado is still hot, inventory is down and homes in most areas are still selling within a week or so.  Short inventory is a problem as it continues to create pure supply issues and raise home values (to levels hard to imagine).  Even in the past 3 months, market values have continued to raise (Zillow, etc.) later into the season than other years.  I hope it will slow down over winter and stabilize.  I too am wondering about a level of correction.