As Q1 2023 comes to an end, there’s a lot of data to be analyzed to understand Utah’s real estate market. Brokers at Re/Max Associates have compiled some valuable insights to help understand not just what happened in the market but what to expect going forward.
UtahRealEstate.com provides data for the entire state, with the blue line representing the median sales price over the past five years, the green line representing inventory for any particular quarter, and the black line representing the number of sold properties. The rhythm of the market can be observed as we pass through a year, with a typical drop in the number of sales from Q4 to Q1. However, in 2022, the Q4 to Q1 sales did not drop off, indicating that people always have to buy and sell in any given market.
The minimum number of transactions needed to keep people alive is what drives the real estate market. Despite the pandemic and economic uncertainties, people still need to buy and sell properties, resulting in a floor for the number of transactions. The median sales price in Utah has increased 67.2% over the past five years, including the correction of the past four quarters, with a real return on investment of 81%.
Understanding the real estate market is crucial for potential buyers and sellers. People often ask, “How’s the market doing? What’s going on in the market? Should I buy or sell now?” Having context and confidence while answering these questions is essential. Knowing the trends and insights of the market can help buyers and sellers make informed decisions.
In conclusion, Q1 2023 has shown that the Utah real estate market is stable, with a floor for the number of transactions. The median sales price has increased significantly over the past five years, resulting in a real return on investment of 81%. With the current state of the market, buyers and sellers can make informed decisions with confidence.