The #1 question people ask me about real estate is …will housing prices go up or down in 2021? Followed by, “Should we buy or sell?” To me, the answers are easy.
During the last 10 years Utah has had more growth per capita than any other state. Basically, more folks are moving here than leaving, and sans a pandemic, we are low in overall inventory of rentals, affordable housing, condos, homes, multi-plexes, mansions. Add on COVID19 with people wanting to (or being encouraged to) stay home makes for less properties available to buy. We REALTORS® sold more homes in the state than 2019 and we sold them for more money, too. Our National Association of REALTORS® has us at @10% over 2019 with Summit County, Wasatch, and Cashe Counties up over 50% over the previous year.
I know that on December 31st of 2020 I was still frantically trying to find some buyers a home in their price range. Just for shits and giggles I pulled up ALL residential properties for sale in Salt Lake County (homes, townhomes, condos, twin homes, mobile homes) in any price range. In recent years there would have been a few thousand homes for sale at the end of the year. There were 634 homes for sale-total. To put that number in perspective, certainly there are more than 634 people/families looking for a place to buy as a home or investment right now, and there are almost 10,000 REALTOR® members in the Salt Lake Board of REALTORS® trying to help many of them. Now you understand why homes are flying off the market with multiple offers in hours or just a few days!
Not only is it extremely tough for buyers to find a home right now, but it’s also just as tough for real estate agents to make a living, too. Luckily, most members are only part timers, and fact is, 10% of the members sell about 90% of the listings. If you’re thinking of changing careers to become a real estate agent let me lay some facts on you. First, Real Estate School costs around $600 for the required 120 hours of classes you need to take to take the State test. Once you pass the test it’s a few hundred bucks to get your license in order with the State, and twice that to join the Board of REALTORS® and another $50 or so each month for MLS fees. Then you’ll need cards, an ad budget and keyboxes. Some brokerages might offer to pay much of the costs if you sign away your soul to work for them for a period until you pay the man off.
Bottom line-prices on all properties are going to go up in 2021. I’m being conservative and predict a 10% jump in values in the next 12 months. DON’T stop looking because you think the market will loosen up, it won’t!