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Utah's housing market has been red hot in recent years. The state ranked No. 1 on Bankrate's Housing Heat Index through the third quarter of 2021 with no sign of things cooling off anytime soon.
If you're wondering how things got to this point — or if you'll ever be able to buy a home in the Beehive State — it helps to understand how the market has changed over the last 10 years.
(And before prospective buyers despair, don't worry — it's not all bad news.)
Demand is much higher
Once upon a time, Utah was a well-kept secret in the Intermountain West. But now that secret appears to be out, as more and more people continue to move here. According to the U.S. Census Bureau, Utah's population grew by 18.4% over the past decade, making it the fastest-growing state.
Of course, that increased population also translates to higher demand for housing. The Kem C. Gardner Policy Institute reports there are far more households in Utah than there are available housing units—a deficit that began in 2018 and hasn't stopped.
The median price of homes went up exponentially
The bad news is that the increased demand also translates to increased prices. (Though this isn't bad news if you're trying to sell.) Over the past decade, Utah home prices have skyrocketed.
Back at the beginning of 2011, the median Utah home price hovered just below $200,000, according to the Salt Lake Board of Realtors. Contrast that with data from October 2021, where the median sales price of a home in Salt Lake County hit $475,000. That was a 22.7% increase just from October 2020.
The average amount of time on the market went down dramatically
Another major change over the last decade is that people have had to make buying decisions much faster. Sure, back in 2011 or 2012, you could hang back for a bit while you mulled over different buying options. The average amount of time a home stayed on the market in 2011 was a whopping 87 days, according to data compiled by the Kem C. Gardner Policy Institute.
But 10 years later in 2021, the median days on market for residential units plummeted to just six. If you wanted a house, you had to act fast.
Houses are more likely to sell above the asking price
While you might have been able to negotiate a lower price with the seller a few years ago, don't count on that being the case in 2022. These days, homes are selling above the asking price — sometimes tens of thousands of dollars above it. And don't be fooled by a lower price that seems too good to be true.
"Sometimes listing agents intentionally price a home below market value to make it a more compelling offer," Philip Kranefuss, head of Real Estate in Colorado with Homie, told The Mortgage Reports. "This results in a buyer-feeding frenzy. And it's not unheard of in these situations to see the winning bid come in thousands over list price."
So how much should you offer for a home? Kranefuss suggests going 1%–3% above the list price, provided you can afford it.
More people are buying with cash
Most people don't have enough money in their bank accounts to pay cash for a house, yet Redfin reports that 30% of homes were purchased with cash from July 2020 to February 2021. And when it comes to securing that dream home, the phrase "cash is king" certainly holds true. A cash offer quadruples your chances of winning a bidding war.
But unlike a decade ago, today there are programs like Homie Cash that make this option possible for buyers. When you qualify for the program, Homie will advance a cash loan you can use to purchase a home. After closing, you can refinance the loan into a long-term mortgage you can afford. If you live in Utah, Colorado, Arizona, Idaho, or Nevada, learn more about Homie Cash or even get pre-approved.
Today, you've got better options
Not all of the changes in real estate over the past decade have been negative. Working with real estate agents may have been a hassle in the past, but it doesn't have to be that way anymore. Since 2015, Homie has saved clients over 100 million dollars in commissions and fees, all while putting thousands of people on the path to homeownership.
Unlike your traditional listing agent, Homie agents charge a flat fee of $3,500 instead of the traditional 2-3% when you sell your home. And if you're looking to buy, your Homie agent can split up to 50% of the buyer's agent commission with you.
Whether you're buying or selling, Homie's goal is to make the process faster, easier, and as pain-free as possible. Contact their agents today to see how they can help you sell and/or buy your next home, even in today's market.
