
5 minute read
Housing Watch
JUNE HOUSING WATCH
As Higher Home Prices Slow Single-Family Home Sales, Condo Sales Skyrocket
Higher home prices and a shortage of inventory slowed single-family home sales in the second quarter, while sales of
“There were 1,455 sales multifamily homes (condominiums, townhouses, and twin homes) climbed sharply.of multifamily homes in In the second quarter, there were 3,396 single-family homes
Salt Lake County, up 28% sold in Salt Lake County, nearly the same number of homes sold in the second quarter of 2020, when Covid-19 stifled compared to 1,140 sales a sales. However, when compared to the second quarter of 2019, a year unaffected by the pandemic, single-family home year earlier. sales in this year’s second quarter were down 10%. There were 1,455 sales of multifamily homes in Salt Lake County, up 28% compared to 1,140 sales a year earlier. In June, overall sales (all housing types) in Salt Lake County, fell to 1,764, down nearly 8% from June 2020. However, sales in the first six months in the county were up 5% compared to the same period in 2020. The median price of a single-family home in the second quarter in Salt Lake County increased to $530,000, up 29% year over year. The median price of a multifamily unit climbed to $368,000, up 27% compared to the second quarter of 2020. “Higher home prices are driving more buyers to condominiums and townhouses,” said Matt Ulrich, president of the Salt Lake Board of Realtors®. “The typical multifamily home was roughly $160,000 less in price than a single-family home in the second quarter.” Where are home buyers purchasing homes? More buyers are looking outside of Salt Lake County, which posted the highest median home price of the five-county Wasatch Front area. The top 10 cities in single-family home sales in the second quarter were: 1. Eagle Mountain 2. Tooele 3. Lehi 4. Clearfield 5. Saratoga Springs 6. Farr West 7. Herriman 8. Roy 9. American Fork 10. Marriott-Slaterville New listings in Salt Lake County in the second quarter fell to 5,610 units, down 7% compared to the same period in 2020.





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Real Estate Development (continued from page 21) home supply is generally considered a balanced market. “We have about one month’s supply of homes for sale here [in Atlanta], which is unheard of,” he said. Marianne Bornhoft, a real estate agent at Windermere Manito in Spokane, Wash., and her husband Chris Bornhoft, a developer, have also had good timing. “We recognized that the housing shortage was bad for new multifamily housing in Spokane a couple years ago, so we decided it was a good time to invest in building and managing an apartment building,” Marianne said. They purchased a vacant lot and built a 12-unit rental building; the apartments rent for between $1,500 and $1,650 per month. “People who are renting from us are people who sold their homes but can’t find a place to buy,” Marianne said. “They’re displaced sellers, which is not uncommon in today’s market.” But as first-time multifamily developers, the Bornhofts have experienced growing pains. “We initially expected the project to take about a year,” said Marianne, “but it took over 600 days to complete.” The delay, in part, came because they were forced to hire a second contractor, after the first one dropped out midway through construction. “We’ve had some challenges, but we got through them,” Marianne said. “It’s been a real labor of love.” Of course, the ability to adapt business activities in the face of market realities is important for anyone to prosper in real estate. During the Great Recession of 2008, for example, many real estate pros pivoted to develop expertise in short sales and foreclosures. For many Black brokers and agents, having multiple revenue streams, including from development projects, has long been key to success in real estate. Some say it’s because of subtle but entrenched biases against their businesses and neighborhoods, whether from lending policies, clients, or other practitioners. “On a good day, a Black broker who is largely servicing the Black community is going to have a drastically lower income from sales simply because the homes that they sell are priced lower compared to other areas based on the color of the residents,” said Matt Difanis, a White real estate broker at RE/MAX Realty Associates in Central Illinois, who leads talks on housing discrimination. Still, Difanis points to a silver lining. “This discrimination has led to the remarkable adaptability of Black real estate agents and brokers,” he said. Bonita Harrison, broker-owner of KBM Realty, a real estate investment firm in Chicago, has offered a diverse range of services since she opened her company in 2006. A longtime rehabber, she said the pandemic accelerated the demand for development projects. “With interest rates dropping as low as they did, we’ve received exponential interest from buyers for our properties,” said Harrison, who flips singlefamily and multifamily homes on Chicago’s South Side. In Harrison’s world, discrimination isn’t a thing of the past. “Because I’m a Black female developer, I’ve received racist and sexist comments from other industry professionals. I had one HVAC inspector work on a property I was rehabbing, and he was very demeaning toward me. He didn’t believe I was the developer of the property. I’ve also had buyers question whether the quality for my work is the same as that of my White counterparts.” Despite such challenges, Harrison said her business is flourishing. “In this low-inventory market, we’re getting multiple contracts on homes even before I’m finished remodeling them.” As Yun, NAR’s chief economist, sees the situation: “Because of the housing shortage, any inventory that can come to the market, whether it be newly built homes or refurbishing uninhabitable homes, is a potential money maker.” Daniel Bortz is a freelance writer who specializes in writing about personal finance but also covers real estate, home improvement, travel, careers, small business, and even weddings.
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