Salt Lake Realtor – January 2021

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2021 Home Design Trends p. 26

Table of Contents Features 10 Housing Forecast Executive Report James Wood 20 Real Estate in 2021: Plenty of Reason for Optimism

Lawrence Yun 24 Matt Ulrich: 2021 President of the Salt Lake Board of Realtors®

26 5 Hot Home Design Trends for 2021 Krisztina Bell

Columns 7 Working Together Matt Ulrich – President’s Message

Departments 8 Happenings 8 In the News 28 Housing Watch

On the Cover: Cover: SeanPavonePhoto©/ Adobe Stock Photo left: Image licensed by Ingram Image

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Salt Lake Board: (801) 542-8840 e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®.

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Last year was both a challenging and exceptional year. At the start of 2020, economists predicted the economy would crash. For several months those fears appeared to be realized. However, the housing market remained what The Washington Post recently called, “a bright spot in an otherwise dreary 2020.”

In Salt Lake County, home sales in 2020 broke the previous sales record from 2005. I would like to congratulate and thank each of our members for their professionalism and dedication through such a difficult year.

Looking ahead, 2021 promises to be another strong year for housing. “Experts are forecasting increased demand from buyers who delayed purchasing homes because of the pandemic, from existing homeowners who need larger spaces to accommodate parents working from home and children attending school virtually, and from condo owners who are seeking to escape multifamily buildings for single-family houses to mitigate exposure to the virus,” The Post said. “The ability to tour homes and close on purchases virtually will make buying a home simpler in 2021.”

The value of a Realtor® will continue to increase as buyers and sellers look to professionals to navigate the biggest purchase of their lives. “There are no easy real estate transactions,” according to Curtis Bullock, CEO of the Salt Lake Board of Realtors®. “Selling or purchasing a home requires a unique skill set and knowledge base to ensure the transaction goes smoothly. If you have recently purchased or sold a home and felt like it was easy, it’s probably because your Realtor® was solving problems left and right behind the scenes without you knowing about it.”

Potential legal problems in a real estate transaction include a myriad of possibilities, including a misunderstanding of what “as-is” condition means; CC&Rs not given to the buyer; dealing with multiple offers; not delivering documents by deadline; seller repairs not completed; mold detection; money wired and lost due to fraud; and a seller backing out before settlement.

These are just some of the reasons why home buyers and sellers look to a Realtor® for their real estate needs. Are you the kind of Realtor® who knows the answers when your client faces a potential hurdle? Do you communicate with other agents involved in the transaction? Are you a professional? Do you continually keep up with changes in education requirements and legal issues?

It is important to work together as Realtors® to ensure that each transaction is smooth and that we are worthy of our clients’ trust. When we put our clients first and work professionally, we all win.

Matt Ulrich President

Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ® REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®.

October 2005

January 2021 | Salt Lake Realtor ® | 7

Happenings

In the News What Experts Say About the 2021 Real Estate Market Danielle Hale, Realtor.com chief economist, told Forbes Magazine that home sales in 2021 should grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels. “While we expect mortgage rates to tick up gradually, sales and price growth will be propelled by still strong demand, a recovering economy, and still low mortgage rates,” Hale said.

“High buyer demand and still-lagging supply will keep prices growing, but at a slower pace than 2020 as buyers contend with mortgage rate and price increases that create affordability challenges.”

2020 was a Record Year for Home Sales Last year was the best year in overall home sales in Salt Lake County.

More than 19,000 homes were sold, beating the previous 2005 record of 18,907 home sales. Climbing home sales are the result of a rapidly growing job market. At 29.4 percent, Utah was No. 1 in the nation in highest employment growth from 2010 through 2020, according to the U.S. Bureau of Labor Statistics. Utah also ranked first among all states in the rate of population growth. The state’s population increased by 15.5 percent in the past decade.

Winter is the Best Time to Buy a Home Winter is the best time to buy a home, according to Attom Data Solutions. Buyers who close on Dec. 4 or Jan. 26 will get the best deal and pay exactly market value for a property, as opposed to above market value in an extremely competitive market that has been on the rise. Nationally, while December is considered the best month to buy overall, there is still about a 1.5 percent premium. However, buyers can expect to pay higher premiums if they plan on purchasing in the summer, with the month of June having the highest premium at 6.9 percent. In determining the best days to buy a home, the report examined more than 27 million single family home and condo sales over the past seven years.

8 | Salt Lake Realtor ® | January 2021

Robert Dietz, senior vice president and chief economist, National Association of Home Builders, said, “With home builder confidence near record highs, we expect continued gains for singlefamily construction, albeit at a lower growth rate than in 2019. Some slowing of new home sales growth will occur due to the fact that a growing share of sales has come from homes that have not started construction. Nonetheless, buyer traffic will remain strong given favorable demographics, a shifting geography of housing demand to lower-density markets and historically low interest rates.”

Dietz added that supply-side headwinds will persist. Residential construction continues to face limiting factors, including higher costs and longer delivery times for building materials, an ongoing labor skills shortage, and concerns over regulatory cost burdens. For apartment construction, there is some weakness for multifamily rental development particularly in high-density markets, while remodeling demand should remain strong and expand further.

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10 | Salt Lake Realtor ® | January 2021

An Exceptional Year for Salt Lake’s Housing Market | 2020 Was the Best Year in Overall Residential Sales Salt Lake County Residential Real Estate Market: 2020 Review — 2021 Forecast

By James Wood Ivory-Boyer Senior Fellow, Kem C. Gardner Policy Institute, University of Utah Commissioned by the Salt Lake Board of Realtors®

Extraordinary Growth in Jobs and Population What’s behind the remarkable performance of Salt Lake County’s housing market? The short answer: the state’s extraordinary growth in jobs and population.

Keep in mind that nearly half of all jobs in the state and 40% of the state’s population are located in Salt Lake County.

Since 2010, Utah has had the most rapidly growing job market in the country (Table 1). In just ten years, the number of non-farm jobs in Utah increased by nearly 30%, an increase of 290,000 jobs. Utah is almost an outlier in the rate of job growth. The state’s growth rate is far above other high-growth states such as Arizona, Florida, and Texas. In 2020, during the pandemic, Utah’s job market’s strength and resiliency have been on full display. The number of jobs in the state declined by just over one percent in 2020. Of all 50 states, only Idaho had a lower rate of decline.

Nationally, the rate of decline is expected to be around six percent.

Table 1

population increased by 15.5% in nine years, an increase of 450,000 people (Table 2). Population and employment growth are key drivers of the demand for housing. The state’s rapid growth has had a widespread impact on Salt Lake County’s housing market, creating a housing shortage, pushing up home prices, and leading to a record level of sales for residential real estate.

Table 2 States Ranked by Population Growth 2010-2019

State 1. Utah

2. Texas

3. Colorado

4. Nevada

5. Florida

6. Idaho

7. Arizona

8. North Dakota 9. Washington 10. South Carolina

% Change 15.5% 14.9% 14.1% 14.0% 14.0% 13.8% 13.6% 13.0% 12.9% 11.1%

Source: U.S. Census Bureau

States Ranked by Employment Change 2010-2020 (July to July*)

Salt Lake County’s Housing Shortage

State 1. Utah

2. Idaho

3. Arizona

4. Florida

5. Colorado

6. Texas

7. Nevada

8. South Carolina 9. Georgia

10. Washington

Generally, the demand for housing reflects changes in the number of households. The creation of new households through in-migration, marriage, kids going out on their own, etc., generates a need for additional housing units. New housing units are required to accommodate the increase in households.

For decades the increase in housing units always slightly exceeded the growth in households. But since the Great Recession, the relationship has reversed, with the growth in households exceeding the increase in housing units. Currently, the deficit or shortage in Salt Lake County is around 5,500 units. While this on-going shortage is shrinking, due to recent high levels of residential construction, the shortage continues to impact the real estate market.

The two most visible impacts are on sales and prices.

% Change 29.4% 25.2% 19.0% 18.2% 17.5% 16.7% 14.6% 14.0% 13.9% 13.9%

*Not seasonally adjusted Source: U.S. Bureau of Labor Statistics

Utah also ranks first among all states in the rate of population growth from 2010 to 2019. The state’s

January 2021 | Salt Lake Realtor ® | 11

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2020 — A Record Year for Sales?

Although the final sales numbers are not yet in, 2020 will likely be a record year for residential real estate sales in Salt Lake County. As of December 31st, total sales of 18,782 were only 26 short of the 2005 record of 18,808. While single-family sales of 13,500 are well short of a record year, condominium, townhome, and twin home sales could push total sales to a new record. The sales of condominiums, etc., will set a new high of around 5,300 units, capturing nearly 30% of all residential sales, the highest share of residential sales in the local housing market’s history.

of total households). It should be noted that the housing market in 2005 was in an unsustainable boom, so the 5.9% share should not be viewed as a realistic target. What we can say is that the 4.5% share in 2020 is slightly above the long-term average but is likely suppressed by a shortage of listings. The best evidence of a suppressed number of sales due to a lack of listings is the cumulative days on market data.

“In 2020, the median sales price of a single-family home in Salt Lake County increased by 11.8% to $425,000.”

A Second Measure of Sales The historical data in Figure 1 do not consider the county’s demographic growth. As the population of the county increases, there should be a corresponding increase in home sales. Salt Lake County has many more households in 2020 than in the record year of 2005. In a boom year, real estate should be higher than sales 15 years ago. One way to account for the demographic increase is to compare real estate sales in a year to the number of households and calculate real estate sales as a percentage of total households. For example, the 18,782 sales in 2020 amount to 4.5% of the 416,848 households in Salt Lake County (Figure 2). A much lower percentage than the 5.9% in 2005 when households totaled only 319,620. The equivalent level of sales in 2020—equal to 5.9% of households— would require a 30% increase in sales to 24,600 homes. So, while sales in 2020 could be the highest ever numerically, adjusting for household growth shows that 2020 sales were just slightly higher than the long-term average of 4.2% (of sales as a percent

12 | Salt Lake Realtor ® | January 2021

‘Days on Market’ Falls In 2020, the days on market reached an all-time low of 12 days for a single-family home, down from 24 days in 2019 and far below the long-term average of 41 days (Figure 3). Anecdotes abound about multiple offers, near auctions for listed homes, and sales prices well above listing prices. Indeed, signs of demand far exceeding supply.

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Single-Family Home Prices The rate of price increases moderated in 2018 and 2019, and it seemed like another year of moderation was in order for 2020. But conditions changed as the mortgage rate dropped from 3.45% in March to a historic low of 2.67% in December. The drop in rates was due to the Federal Reserve’s response to COVID-19. The Fed cut rates to avert a deep national recession. Lower interest produced a strong surge in demand for housing pushing up prices. In 2020 the median sales price of a, single-family home in Salt Lake County increased by 11.8% to $425,000.

of a home in the Salt Lake Metro Area is higher than 88% of all major metro areas.

Growing Concern for Housing Affordability

Since 1996, Housing Prices in Salt Lake County Have Increased at an Average Annual Rate of 5.1% Long-term demographic and economic growth has generated rapid increases in housing prices in Salt Lake County. The median sales price of a home in the county has increased from $129,000 in 1996 to $425,000 in 2020, an average annual growth rate of 5.1% (Figure 5). Over the same period, housing prices nationally have increased at a 3.7% annual rate. Most notable is the increase in prices in the past five years. From 2015 to 2020, the median sales price has increased from $272,900 to $425,000, an average annual increase of 9.3%; fifty percent higher than the national rate of growth of 6.2%. Housing prices in Salt Lake County have not only been among the most rapidly increasing in the country, but the median price is also among the highest. According to the National Association of Realtors® report, the median sales price in the third quarter of 2020 in the Salt Lake Metropolitan Area ranked 21st highest out of 181 metro areas. In other words, the median sales price

14 | Salt Lake Realtor ® | January 2021

The increase in housing prices is excluding more families from homeownership. Despite the drop in the mortgage rate, the monthly payment for the median-priced home in Salt Lake County has increased from $1,743 in 2015 to $2,416 in 2020 (Figure 6). Both property taxes and private mortgage insurance are based on the price of the home. For the buyer of the median-priced home in 2020, the property taxes are nearly $100 higher than in 2015, and the monthly cost for private mortgage insurance is $127 higher. These increases pretty much wipe out the savings from lower interest rates. In 2015 it took an income of $70,000 to buy the median-priced home in Salt Lake County. Five years later, it takes an income of $97,000, an increase of 39% in five years. (continued on page 18)

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2021 Economic Forecast

“In 2021, the total number of home sales will reach 19,500... including 14,000 single-family homes and 5,500 condominium/townhome units.”

The most recent economic forecast for the state (October 2020) shows a strong post-pandemic rebound. Key points from the 2021 statewide forecast: •

•

•

•

• •

Employment growth at 3.8% – Statewide employment growth is forecast for 3.8%, an increase of 58,000 jobs, which would be the largest single-year increase in jobs in Utah’s history. However, the 3.8% rate of growth has been exceeded in many years, but it would still be the highest growth rate since 2006.

Salt Lake County Demographic Growth Rate Remains Unchanged – 2021 net in-migration holding steady at about 4,000 and a population increase of nearly 15,000.

Salt Lake County Employment Recovers – County employment will increase by 25,000 jobs, nearly returning to the pre-pandemic level of 736,000.

Tight Labor Market Returns – In April, the unemployment rate in Salt Lake County hit 11.2%, but by November it had dropped to 4.2%. With the statewide job recovery, the unemployment rate in the county will drop below 3.5%.

Increase in Average Pay Remains Modest – The average wage in Salt Lake County is forecast to increase by 2.5% in 2021 to $60,500.

Residential Construction Stable – Lower levels of apartment construction will offset gains by the single-family and condominium sectors as total number of new units remains stable at about 9,000.

Eleonore H©/ Adobe Stock

18 | Salt Lake Realtor ® | January 2021

Outlook for Mortgage Rates Most experts agree that mortgage rates will remain around 3% in 2021. The average forecast from seven of the largest mortgage lenders and housing-related groups is 3.04% (Table 3).

Table 3 Forecast of 30-Year Fixed Mortgage Rate for 2021

Mortgage Bankers Association National Association of Realtors Realtor.com Freddie mac National Association of Home Builders Fannie Mae Wells Fargo Average of Seven Forecasts

3.3% 3.0% 3.4% 3.0% 2.9% 2.7% 3.0% 3.04%

Housing Forecast for 2021 Continued historically-low interest rates and a strong rebound from the pandemic suggest that 2021 could be another record-breaking year for the Salt Lake County real estate market. The total number of sales will reach 19,500, finally breaking the 19,000 barrier.

Sales of single-family homes will be up nearly four percent to 14,000 units, and condominium/ townhome units will set another record with 5,500 in sales, an increase of six percent. Anecdotes from Realtors® and home builders indicate an increase in out-of-state buyers due to growing opportunities for remote work. The size of this new market segment is unknown, but it could support higher levels of sales and put upward pressure on prices in 2021.

In contrast, high home prices will exclude some potential buyers from the market. Affordability issues will temper price increases in 2021. Another year of a double-digit increase is unlikely. Expect the median sales price of a single-family home to increase by 6%-8% to $455,000, and the price of condominiums/townhomes to increase by 9%-10% to $335,000. And finally, residential real estate commissions will increase from $490 million in 2020 to $550 million in 2021.

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Low mortgage rates have been the key reason for the housing market’s strong performance in the midst of the pandemic and high unemployment.

Time and again, home sales have responded to rate changes. In 2018, the economy was roaring along with jobs, jobs, and jobs, but interest rates climbed as high as 4.9 percent and home sales went into reverse. The annualized sales pace fell from 5.5 million at the beginning of the year to 5 million by year’s end. Taking another illustration, home sales were at the 5.2 million pace in September 2001 but then rose to an annualized pace of 6 million by the end of 2002, even though the economy underwent a recession with job losses after the horror of 9/11. The faster pace of sales came because, over that period, mortgage rates fell from 7 percent to 6 percent.

Real Estate in 2021: Plenty of Reason for Optimism A tax credit proposal and new construction are keys to improving home affordability, while creative reuse is the buzzword for commercial.

By Lawrence Yun The housing market was a spectacular surprise in 2020—and the positive trend will continue this year. Home sales in 2021 are expected to rise by around 10 percent. Home prices will also climb, but I expect more moderate increases than we’ve seen, a break for first-time buyers. Mortgage rates will continue to be favorable, staying at or near historic lows of 3 percent on average.

The labor market will strengthen, especially as vaccines become widely available and life moves toward normal.

Around 4 million net jobs could be added, a gradual rebound from the net loss of roughly 7 million during the pandemic year of 2020. The unemployment rate by the year’s end could be at 5.5 percent, a great improvement from 14.7 percent in April 2020 when the nation was under a strict lockdown, but still a few notches up from the generational low of 3.5 percent right before the pandemic.

20 | Salt Lake Realtor ® | January 2021

While mortgage rates are highly influential, they’re not the only factor affecting home sales.

Given the substantial commitment and financial dollars at stake, consumer confidence and lifecycle events such as marriage, changes to family size, and retirement all play a role. During the pandemic, we learned that most people who work in offices could be just as productive at home, and this new reality will help fuel home sales in the post-pandemic economy. Already, big tech companies are allowing greater work-fromhome flexibility. Other organizations will no doubt follow in some hybrid fashion. Perhaps the work-from-home trend was inevitable as internet speed and software improved. The pandemic just accelerated the timeline in a flash.

Owners who were content with their home before the pandemic are thinking about the benefits of another bedroom to use as a dedicated home office or are considering relocating to the countryside, knowing that commuting to downtown offices every day has become a thing of the past. Some consumers are turning to vacation properties as an appealing workfrom-home option. The evidence is in the data showing home sales in vacation destinations around Lake Tahoe, the Smoky Mountains, and the Atlantic Coast growing faster than in metropolitan markets.

The encouraging news on the home front contrasts drastically with the specter of nearly empty office buildings. Those with leases are still mostly paying rent even though office spaces are not being used, and businesses with leases that are terminating are clearly reevaluating their space needs. In the second and third quarter of 2020, office usage dropped by a combined 74 million square feet. The situation will not improve until the middle of this year; even then, the normal relationship between office job creation and net new leasing will not align

as many companies will reevaluate and rejigger their office space needs.

Downtown retail shops and eateries will also undergo a harsh transition from the reduced foot traffic.

Commercial, industrial, and warehouse demand, meanwhile, are doing great. Net absorption, meaning the total space that became occupied minus the total that became vacant in a given time period, rose by 113 million square feet in the second and third quarters of last year.

While people are increasingly avoiding in-person shopping, e-commerce, already rising before the pandemic, made a hockey-stick upturn during this time. Even after vaccines arrive and people feel safer about going out, there is likely to be significant overcapacity of shopping malls.

That’s why reuse and adaptation will be important. Successful shopping mall transformations result in mixed-use properties, allowing for residential, office, and retail spaces and medical clinics. Other possibilities include online shopping fulfillment centers, sports facilities including gyms, self-storage areas, and even health care armories (to prepare for the next pandemic).

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Multifamily apartments are holding on reasonably well considering the pandemic’s effect on both occupancy levels and rent collection. The housing shortage is the result of a decade of underproduction of all housing types. That is why apartment vacancy rates have been rising only by decimal points during this recession. Renters who would like to transition into ownership are facing sticker shock at home prices. Even with record low mortgage rates, affordability is barely improving because costs are outpacing income. Nothing is as demoralizing as saving up for a down payment and continuing to find you never have enough because of fast-rising home prices.

Help could be on the way. President-elect Joe Biden has proposed a $15,000 first-time home buyer tax credit, which would be available at the closing table. In essence, it is down payment assistance. Some negotiation with Congress is needed to make it into a law, and surely there will be qualifying income limitations to ensure the benefit goes to those who need it most. This is certainly welcome news for many renters. But it is insufficient.

The housing market is facing an acute inventory shortage. Adding more demand without addressing the supply will push up home prices at an even faster clip. That is why it’s critical to turn raw land into developable lots so that homebuilders can increase production.

But Biden’s proposal to remove 1031 like-kind

22 | Salt Lake Realtor ® | January 2021

exchanges from the tax code would hinder land sales and pile more negative pressure onto commercial real estate. Without serious reconsideration of the value of this tax incentive, home prices could take off and essentially negate the benefit of federally supported down payment assistance programs.

The Biden administration is also likely to appoint Federal Reserve governors who will be more tolerant of higher inflation in order to quickly bring down the unemployment rate. That means printing more money. Don’t be surprised if, over time, prices for a tangible asset like real estate consistently outpace overall consumer price inflation. Even bitcoin, with its limited supply, may attract investors.

Finally, under a Biden presidency, overall government spending is likely to rise. The goal: Fix the economy before worrying about the deficit. Spending on programs such as highspeed internet access for rural communities and improved rail transportation to distant suburbs will have a positive impact, since demand will continue to increase outside of city centers. Land is plentiful and relatively cheap, making it easier for homebuilders to construct homes. Only when the supply of new homes is growing does stimulating additional demand make sense.

Lawrence Yun is Chief Economist and Senior Vice President of Research at the National Association of Realtors®.

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24 | Salt Lake Realtor ® | January 2021

How did you choose real estate as a career?

I framed houses and did finish carpentry for six years before getting real estate license. My dad encouraged me to get into real estate. I got my license in 2007. At that time, The Great Recession had just started. Sales were scarce. I learned to work hard and persevere. I don’t take things for granted. I was taught not to sweat the small stuff or about things you can’t control. If you put in the effort things will work out.

What are your goals as president for 2021?

I would like to see the professionalism of our Realtors® increase and the value that we provide to consumers grow. When Realtors® work together, everybody wins, especially our clients.

We need to continue to raise awareness of how RPAC protects the real estate transaction. In 2020, our local RPAC efforts ensured that real estate was designated as an essential service. While other states and cities were shut down for several months, our agents were able to continue to help clients buy and sell homes.

What advice would you give a new agent?

You need to treat this like a regular job. You need

to put in the work and time that is needed to become successful. Show up every day. Make yourself available for the clients. It generally takes you three years to get established.

What has helped you in your career?

One of the biggest things that has helped me in my career is getting involved. My dad, who was my broker, told me to join a committee of the Salt Lake Board of Realtors®. That helped me be more professional, understand the profession and be a better Realtor®.

Favorite hobbies?

My passion is fitness and working out. I love to be active and outdoors. In the summer you will find me on a boat on the lake. In the winter, I’ll be in the mountains snow skiing. I love to travel and spend time with family and friends.

What do you expect in the 2021 real estate market?

I expect it to be another record year in sales.

Prices will continue to rise. There is plenty of opportunity for everyone. Go out and grab it.

Here’s to a great 2021.

January 2021 | Salt Lake Realtor ® | 25

AdrieDee©/ Adobe Stock

5 Hot Home Design Trends for 2021 From cozy vibes to statement lighting, find out what’s trending in the new year.

By Krisztina Bell What popular home trends can we expect in the new year? Life in quarantine has really allowed us to take a step back and reevaluate our homes from a new perspective. Homeowners are looking to make their spaces more functional as well as reflect more personality. They’re seeking comfortable and casual-style living. “Cozy” will continue to be the new “luxury.”

In my market in Atlanta, some of the top design trends relate to stylish home offices, which are popping up in basements, breakfast areas, bedrooms, and attics. Also, statement lighting, accent walls in natural elements, pops of color, and outdoor living spaces are all the rage as flippers, investors, and builders look for ways to put a signature stamp on their properties.

Here are five home trends to watch in the new year.

26 | Salt Lake Realtor ® | January 2021

1. A laid-back lifestyle As we move forward, combining classical and modern design elements will transform any space with a new and fresh look. If we are working and living at home, why not look for ways to make our home more meaningful? Darker kitchens, Zen spaces, and even “cottagecore” are being praised for their comforting feel as we seek to bring the outdoors inside and become one with Earth’s raw materials.

2. Natural elements As consumers connect more with nature, we will continue to see greenery, macrame, and Scandinavian-style furnishings and decorative (continued on page 30)

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NOVEMBER HOUSING WATCH Salt Lake County Home Sales Soar in November When final numbers are reported for the year, 2020 will be the best year in terms of sales in the history of the MLS (UtahRealEstate.com).

Salt Lake County home sales in November climbed 17 percent compared to November 2019. The increase marks the sixth consecutive rise in monthly home sales year over year. Home sales from January through November soared to more than 17,423 units sold, up 4 percent compared to the sales in the same 11-month period in 2019. When final numbers are reported for the year, 2020 will be the best year in

terms of sales in the history of the MLS (UtahRealEstate.com).

In Davis County, home sales increased 7 percent in November year over year. In the first 11 months of 2020, home sales were up 5 percent year over year.

Nationally, total existing-home sales soared 26 percent in November compared to November 2019.

“The positive momentum that home sellers are seeing will carry on well into the new year,” said Lawrence Yun, NAR’s chief economist, citing low mortgage rates and remote-work flexibilities.

Yun’s projections of a continued housing market rebound were the consensus among economic and housing experts during NAR’s Real Estate Forecast Summit, held in December. Industry insiders in attendance agreed that mortgage rates will hover around 3 percent in the coming year, and said they expect an annual median home price increase of 8 percent.

Salt Lake County’s median sales price was up 13 percent in November compared to the same month in 2019. Year to date, home prices across the county increased 10 percent in the first 11 months of the year.

Davis County home prices in November jumped to $385,000, up 17 percent compared to November 2019.

“Housing affordability, which had greatly benefitted from falling mortgage rates, are now being challenged due to recordhigh home prices,” Yun said. “That could place strain on some potential consumers, particularly first-time buyers.”

First-time buyers were responsible for 32 percent of sales in November, equal to the percentage seen in both October 2020 and November 2019. NAR’s 2020 Profile of Home Buyers and Sellers – released last month4 – revealed that the annual share of first-time buyers was 31 percent.

Individual investors or second-home buyers, who account for many cash sales, purchased 14 percent of homes in November, identical to the share recorded in October 2020 and a small decline from 16 percent in November 2019. Allcash sales accounted for 20 percent of transactions in November, up from 19 percent in October but unchanged from November 2019.

Distressed sales – foreclosures and short sales – represented less than 1 percent of sales in November, equal to October’s percentage but down from 2 percent in November 2019.

28 | Salt Lake Realtor ® | January 2021

January 2021 | Salt Lake Realtor ® | 29

Studio©/ Adobe Stock

5 Hot Home Design Trends (continued from page 26)

styles that bring softness into our living spaces.

Images of animals, birds, leaves, and flowers will appear in modern urban interiors, and vivid tropical motifs are popping up on our walls.

It doesn’t surprise me that Sherwin-Williams’ 2021 Color of the Year is Urbane Bronze, a color welcomed by designers and home stagers because of its natural earth-tone palette—a safe color that ultimately grounds us.

3. Decorative lighting Unique and artful lighting is stealing the scene in living rooms, dining areas, and even in the bedroom. We will continue to see a mix of materials, finishes, and styles of lighting that are expanding our point of view. Black lighting fixtures are being spotted along with metals like oil rubbed bronzes. Also, brass and gold metals aren’t going anywhere. Expect the brass trend to linger a while longer. Lighting overall is being added to rooms like a statement piece of jewelry, so make it count!

4. Accent walls Wood-paneled accent walls in the living or dining areas are making a comeback in chic and modern ways. Look for stripes, textures,

30 | Salt Lake Realtor ® | January 2021

wood finishes, subtle or bold paint colors, and even wallpaper that looks like works of art.

Homeowners are being daring, adding some dimension, intrigue, and style to express their personalities as they seek to make a home their own sanctuary.

5. Flex spaces Families are rethinking the purpose of rooms and transforming them into multifunctional spaces.

Flexible spaces are being given a true purpose as the trend of remote work continues in 2021. Also, more open floorplans are calling for sliding doors and partitions to separate work from play in our homes. Your next DIY project may be designing your own yoga room, reading nook, hobby/craft room, or just a space you call your happy place to find peace of mind.

Homeowners are celebrating their homes with individuality and uniqueness. Embrace these latest design trends and bring your home into the new year with sensational style.

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All in, for our craft.

Congratulations to Jim Bringhurst, for receiving the Utah Association of Realtor’s Distinguished Service Award.

Having only ever been awarded to 8 people, this award recognizes leaders who have shown exceptional involvement in the association, in political affairs, and in the community.

Ready to elevate and humanize real estate?

Visit us online at winutah.com/joinus