Plenty of available homes to choose from. Decent demand keeping market normal/advantage sellers

Highlights:
1) Roller coaster in mortgage rates in the last year and especially recent months. Recently relatively flat
2) Annual/seasonal inventory increase began slightly early. Typically inventory trends shift from declining to increasing in early Spring
3) Plenty of inventory/homes to choose from, at least by recent standards,
4) Demand high enough to keep absorption rates at roughly 3 and 4 months (a balanced sellers market).
5) Welcome to this year's Spring market. Active, but very unique market. What is unique is that some homes go gangbusters and receive multiple offers while others sit on market or don't ultimately sell (results vary widely across neighborhoods and price brackets). 

#5 above to a great one liner description of current market conditions. 

This is such a unique market. The market is active, but behaviors and perceptions haven't changed. The comical way of describing this is that sellers think it is 2021, buyers think it is 2008, and the skilled Realtor's job is to close that gap.

On the supply side. The most common market commentary that I've heard in the last month from consumers is "seeing a lot of yard signs" or "there are a lot of homes on the market." Basically a supply side argument for the market slowing. Now this is a great observation. Inventory is increasing and has been for about 2 months now. Welcome to Spring my friends. And yes, inventory is increasing as it basically always does this time of year and that will likely continue to be the case until October/November. Inventory, by historic standards is on the low side. By the standards of the last half decade there is plenty to choose from. 

Putting supply and demand together, we have the makings for a very exciting Spring and Summer. Many savvy people accomplishing goals that they may have put off for a long time. I would argue that there is A LOT of pent up demand in the market from the past several years. A huge amount of people that want to make a move but feel like they can't afford it and/or they feel handcuffed by their current advantageous interest rate. 

2024 inventory peaked in late October and was on a downward trend until recently. Annual/seasonal inventory increase began slightly early. Typically inventory trends shift from declining to increasing in early Spring

Across the board for the Wasatch Front counties, inventory/supply ranges from two and a half months and four months. By that measure alone it is a balanced sellers market. Some homes go gangbusters multiple offers (some neighborhood and price brackets have been super competitive with multiple offer situations being common) while others sit on market. In the current inventory we are seeing some price reductions. In Salt Lake County, 13.9% of the current inventory reduced offering price in the last 7 days and 33.5% of the current inventory reduced offering price in the last 30 days

Expired listings (homes that listed and did not sell) happen in every market. In the last 30 days there were 97 Expireds in Salt Lake County, 106 Expireds in Utah County, and 26 Expireds in Davis County. Even in a sellers market, not every listing sells. 

Buyers ARE BUYING homes in the current mortgage environment. 30 year mortgages are now at 6.76% (Freddie Mac). These numbers are posted every Thursday. 

If you are having thoughts of moving, it might benefit you to have a casual conversation about what is possible in this market. Pro tip, selling and buying at the same time without moving twice IS POSSIBLE in the current market. Schedule a strategy session HERE