Housing Market Settling into New Normal (YEAR IN REVIEW)

 

Housing Market Settling into New Normal (YEAR IN REVIEW)

Monthly home value growth slowed further in October, on the heels of monthly slowdowns in September and August, continuing to bring the astronomical pace of growth down from its record highs earlier in the summer. 

The Home Value rose 1.3% from September, to now $312,728, up 19.2% from October 2020 level. The annual growth represents an all-time high in data dating back more than 20 years, and the monthly pace is higher than at any point recorded prior to the pandemic — but is still down notably from the recent high of 2% set in July. The average October monthly appreciation in the U.S. from 2015 through 2019 was 0.4%. In other words, even as the market cools, it is cooling off from an exceptionally hot starting temperature.

Home values didn’t drop in any of the 50 largest U.S. metros, but monthly home value growth decelerated in 42 of them. The slowest monthly growth was seen in Milwaukee (0.1%), San Francisco (0.3%), Buffalo (0.3%), and St. Louis (0.4%), while the fastest was in Raleigh (2.7%), Nashville (2.4%), and Atlanta (2.3%). Still, even as the overall slowdown in the market continued, October also provided early indications that the slowdown in home value growth is itself slowing down: the decline in monthly growth was slightly smaller than the decline recorded in September from August.

Housing Market Settling into New Normal 
(October 2021 Market Update)

I am currently working on an update for the third quarter of 2021 real estate in Park City.  At first glance, I am seeing many neighborhoods of Park City increasing in the number of transactions and total volume sold.  There are areas that have dropped significantly as well because we are at record lows for inventory.  

The areas of Empire Pass, Silver Creek, and the golf course communities just don't have many options available on the market which naturally slows sales.  But we'll see the overall volume climb as prices have increased.  Park City currently has 72 single-family homes on the market that are built and we had 797 sales in the past year.  797 sales divided by 12 months give us 66 sales per month, which is 1.09 months of inventory.  The lack of homes and condos for sale in Park City is choking out the market which will lead to real estate stats that don't tell the full story.

As far as I see the market is still hot and if a property hits the market you need to be able to act fast. This means knowing where you want to be, having all your lending lined up, and if a specific property will work for you.

Give me a call to discuss the different neighborhoods in the Park City area so I can narrow down your search and help get your up to speed on the areas that will work best for you.

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