When Is The Best Time To Sell Your House In Utah?
Since your home is typically your largest investment, you may be trying to “time the market” when listing your house. Like most investments, you get the largest returns when you buy low and sell high. This works when you are a real estate investor or if you can wait out a seller’s market to turn the tide to a more friendly buyer’s market. But if you are like most people selling your primary residence, the market you sell in is also the market you buy in. So how do you know when is the best time to sell your house in Utah?
In 2020, the median home price in Salt Lake County, Utah was $378,411 which is a 10.5% increase from 2019. Home sales were up 5.5%.
The pandemic had an effect on home sales with fewer people choosing to list their homes. This reduction in inventory, combined with low interest rates, a strong job market and economy, created a seller’s market. As a result, home prices are expected to skyrocket to record levels in 2021.
The following forecast is an estimate based on data from multiple sources including housing data by Salt Lake Board of Realtors®. While it is deemed reliable, it is not guaranteed.
The Best Month To Sell Your Home In Salt Lake County, Utah
Now that we’ve determined that 2021 is going to be the best year to sell your home, you may be wondering when to list. Now? A few months from now?
There’s an old joke about realtors where they will always say the best time to sell is NOW!
Another is that the best time to sell your house was five years ago.
Jokes aside, let’s take a look at the data.
There are two factors that are most important to home sellers when listing a house. Price and speed.
Speed, or “days on market (DOM)” is how many days it takes to sell your house.
Days on Market is important because the longer your home is on the market, the fewer buyers you have willing to place an offer even if you reduce the price.
Here are two graphs that show the change in the Days on Market and the average listing prices in Salt Lake City, Utah. As you can see, listing prices have increased and days on market have decreased.
Traditionally, this data would show that December is the best time of the year to sell a house. But . . . there’s one HUGE caveat. . .
Utah’s Seasonal Considerations When Selling Your Home
Every neighborhood and city within Salt Lake City’s greater metropolitan area varies when it comes to seasonality trends. Local school district schedules, current inventory, new home communities, and corporate development and relocation are all factors that affect home sales.
Our realtors are neighborhood experts for the markets along the Wasatch Front. We keep a close eye on changes that can affect home values in each area. Here’s what we’ve noticed in home sales trends:
There are a lot of buyer’s but there are also a lot of homes on the market. It’s the best time for buyers to make offers since the competition isn’t quite as stiff. Buyers can compare other homes on the market so sellers need to put their best foot forward when staging and presenting their homes.
Families with kids are looking to get into a new home before the school year starts. Many people are vacationing and this is a good time of year to court out-of-state buyers. There’s still a high inventory of homes on the market, so sellers are still in competition with other sellers.
We consider this one of the best times to list a home. Utah’s beautiful fall colors help bolster a home’s curb appeal but the competition is less, so motivated buyers will hop on the opportunities that are available.
Historically this is Utah’s best season for home sellers looking to get a high price for their property. This is another time of year to court out-of-state buyers since they are visiting families for the holidays or they’re here to take advantage of Utah’s ski season. Many corporations tend to make changes around this time and workers want to use the Christmas break to move without using extra paid time off.
How The Coronavirus Is Affecting Home Sales In Utah
This year is totally different.
The coronavirus has absolutely changed the seasonality pattern of home sales in 2020 and that volatility is expected to continue throughout 2021. Which means, we really don’t know how the numbers are going to play out this year.
Economists and real estate experts predict a boom this year, which means that if you’re considering listing your home, right now really is the best time to sell your Utah house and we’re not just saying that because we’re realtors.
In fact, according to the National Association of Realtors, contract signings rose 20.2% in October over the past year. And homes sold for an average of $66,000 more than the purchase price, up from $60,000 last year!
Right now, if you list your home, you are likely to get multiple offers because the inventory in Utah is low right now but there are tons of buyers making offers. Your home will sell quickly, and you’ll likely get the asking price or more so long as you are priced competitively.
Spring is traditionally a time when many people list their homes. Flowers are blooming which gives your home great curb appeal. People have received their tax refunds to help towards a down payment. Kids are about to go on summer break so it’s a good time to switch schools. And the better weather encourages people to go out and look for new spaces.
This year, people have even more reasons to move. Do any of these situations apply to you?
- Looking for new surroundings
- Your working situation has changed
- You can now work remote from anywhere in the U.S.
- The commute to and from work is too long
- You need space for a home office
- You’ve updated your home so now it will get the best price
- You’re moving from out of state to Utah
Utah is also seeing large migration numbers from markets where taxes are high and home prices are unaffordable. We’re seeing people choosing to move from places such as California, since people are no longer tethered to their offices so they can take advantage of Utah’s lower tax rates and recreational amenities.
According to the U.S. census the top in-migrant counties from out of state are:
- Kings County, WA
- Clark County, NV
- Los Angeles County, CA
- Maricopa County, AZ
- Maricopa County, AZ
- Madison County, ID
- San Diego County, CA
- Clark County, NV
What’s Going On With The Utah Housing Market?
Utah is in first place in Bankrate’s Housing Heat Index for the fourth quarter of 2020. Home values jumped 15.4% last year, third-best among U.S. states. Plus, Utah had the nation’s second-strongest job growth in the nation from Dec. 2019 to Dec. 2020. With low mortgage rates and low state and local taxes, Utah is now the place to buy a home.
Homes are expected to see another year of double-digit appreciation in 2021.
A frequent question we’re asked here at Your Utah Realty is, “If I sell my house now, how do I know that I can buy another home in this market for a good price?”
It’s a valid question and while timing isn’t everything, it can influence how long your house is on the market, how much competition you have when bidding on a home, and the price you get and the price you pay.
The Your Utah Realty Strategy for Home Sellers
Our strategy for those listing their homes with us is to drive as much interest and awareness of your home to potential buyers. We do this by aggressively marketing your property, not only through the Wasatch MLS and local venues, but also to out-of-state buyers through our network and digital marketing strategies.
This creates demand and most sellers receive multiple offers which they can then counter to get the best price possible.
But what about buying a home in Salt Lake City or the surrounding metropolitan area in Utah?
We can help facilitate a driveway to driveway move if you are a seller by placing certain contingencies on the sale which can include rent-backs. We have multiple strategies that we can execute depending upon your unique situation so that you are never between homes without a place to stay.