NOVEMBER HOUSING WATCH Salt Lake County Home Sales Soar in November When final numbers are reported for the year, 2020 will be the best year in terms of sales in the history of the MLS (UtahRealEstate.com).
Salt Lake County home sales in November climbed 17 percent compared to November 2019. The increase marks the sixth consecutive rise in monthly home sales year over year. Home sales from January through November soared to more than 17,423 units sold, up 4 percent compared to the sales in the same 11-month period in 2019. When final numbers are reported for the year, 2020 will be the best year in
terms of sales in the history of the MLS (UtahRealEstate.com). In Davis County, home sales increased 7 percent in November year over year. In the first 11 months of 2020, home sales were up 5 percent year over year. Nationally, total existing-home sales soared 26 percent in November compared to November 2019. “The positive momentum that home sellers are seeing will carry on well into the new year,” said Lawrence Yun, NAR’s chief economist, citing low mortgage rates and remote-work flexibilities. Yun’s projections of a continued housing market rebound were the consensus among economic and housing experts during NAR’s Real Estate Forecast Summit, held in December. Industry insiders in attendance agreed that mortgage rates will hover around 3 percent in the coming year, and said they expect an annual median home price increase of 8 percent. Salt Lake County’s median sales price was up 13 percent in November compared to the same month in 2019. Year to date, home prices across the county increased 10 percent in the first 11 months of the year. Davis County home prices in November jumped to $385,000, up 17 percent compared to November 2019. “Housing affordability, which had greatly benefitted from falling mortgage rates, are now being challenged due to recordhigh home prices,” Yun said. “That could place strain on some potential consumers, particularly first-time buyers.” First-time buyers were responsible for 32 percent of sales in November, equal to the percentage seen in both October 2020 and November 2019. NAR’s 2020 Profile of Home Buyers and Sellers – released last month4 – revealed that the annual share of first-time buyers was 31 percent. Individual investors or second-home buyers, who account for many cash sales, purchased 14 percent of homes in November, identical to the share recorded in October 2020 and a small decline from 16 percent in November 2019. Allcash sales accounted for 20 percent of transactions in November, up from 19 percent in October but unchanged from November 2019. Distressed sales – foreclosures and short sales – represented less than 1 percent of sales in November, equal to October’s percentage but down from 2 percent in November 2019.
28 | Salt Lake Realtor ® | January 2021
