Summit Sotheby's International Realty Quarter Three Market Report

QUARTER THREE MARKET REPORT 2021

TABLE OF C ONTENT S 2021 Q3 MARKET REPORT

4

OVERVIEW

5

MAP

7

ALL AVAIL ABLE INVENTORY

9

PROPERTIES SOLD

11

TOTAL SOLD VOLUME

13

AVER AGE DAYS ON MARKE T

15

MONTHS SUPPLY OF INVENTORY

17

AVER AGE AND MEDIAN SOLD PRICES

MARKET REPORT QUARTER THREE 2021

Welcome to Summit Sotheby’s International Realty’s Quarter Three Market Report.

This report reviews and compares Utah’s current and historical real estate market conditions for the Wasatch Front, Wasatch Back and Southern Utah areas.

US Economy The US economy posted modest gains in the third quarter, even while consumers began to slow spending.

While Q2 brought a dramatic snap-back of the US economy post-pandemic, Q3 was characterized by bottlenecks, supply chain problems, the Delta variant and an equity market pullback in September. The GDP projections have also been tempered to 5.7%, down from the 7.9% projections last quarter, with talks of the accommodating financial policies beginning to unwind next year. Inflation continues to be an issue at 5.4%. The Fed has stated that the current inflation spike is a product of supply constraints colliding with the very strong demand.

US Real Estate Market The residential housing market is a sizable chunk of the US GDP at roughly 5%. Simply stated, demand for housing is still outpacing the shrinking standing supply. Mortgage rates remain at rock bottom, adding to demand by eager first-time home buyers. These buyers are seeing historically high home prices, however, with values rising at the fastest rate since the 1970’s. The median home price nationally climbed up 13. 3% year-over-year to $352,800. This marks 115 straight months of year-over-year increases.

Unlike housing bubbles which imply an over-inflated market, the current conditions shape up as more of a boom. Market conditions are very dif ferent from 2007, with qualified and verified buyers driving the demand paired with a genuine shortage of supply. Housing prices are expected to stay elevated with further single digit percentage increases likely if more supply doesn’t come to market in 2022.

The Utah Market Utah is becoming a magnet for in-migration with many looking to improve their quality of life and enjoy an overall lower cost of living. Utah is one of two states that has a fully recovered job market, post pandemic.

The only other state is Idaho. Increasing from $385,000 to $490,000, the Salt Lake City metro area ranks second nationwide for year-over-year median sales price increases at +27. 3%. Ranking first is Boise, Idaho which increased from $369,990 to $476,587, 28.8%.

Along the Wasatch Front the average sold price has increased year-over-year by 21.1% to $544,282, 33.2% in Southern Utah to $535,141 and 25.1% along the Wasatch Back to $1,690,706. Standing inventory statewide is still low, but September saw an increase to 8,586 units for sale up from the low of 6,278 earlier this year.

This low standing inventory is at 57% of levels two years ago (14,965).

THE ARE AS AREAS INCLUDED IN OUR Q3 MARKET REPORT

FARMINGTON

S A LT L A K E CI T Y

PA R K CI T Y

H EB ER CI T Y PR OVO

C EDA R CI T Y

WASATCH BACK

CO U N T I E S : SU M M I T A N D WA S ATC H

WASATCH FRONT

CO U N T I E S : DAV I S , S A LT L A K E A N D U TA H

S PR I N G DA L E , ZION

S T. G EO R G E

SOUTHERN UTAH

CO U N T I E S : WA S H I N G TO N A N D I R O N

ALL AVAIL ABLE INVENTORY

All Available Inventory

UTAH - JANUARY 2019 - SEPTEMBER 2021

Utah - Jan 2019 to Sep 2021 2019 16K

13,513

13

11K

1,482

11,396

10K

10,977

1,431

1,508

11,698

1,497

12K

12,380

1,395

12,866

1,484

1,559

1,609

1,717

1,749

1,594

13,537

14,965 14,916

1,638

13K

1,655

14K 13,808

1,623

14,452

1,702

14,843

15K

1,630

15,478 15,471 15,526 15,514

2,117

2,216

2,112

1,877

2,093

2,189

2,179

2,181

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

7,357

7,806

8,313

9,743

10,067

9,290

2,110

Jul

6K

8,719

2,077

Jun

9,917

2,071

May

11,141

2,173

Apr

11,239

11,700

2,230

11,687

11,698

2,267

Mar

11,019

2,156

Feb

10,562

2,086

Jan

8K

7K

11,675

9K

5K

4K

3K

2K

1K 0K

M

All Available Inventory is the total "# For Sale" that month. This includes any property that was on the market at any point during the month, as opposed to just the nu aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed as sold Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's Interna

summitsothebysrealty.com

DEFINING ALL AVAIL ABLE INVENTORY This metric gives us a glance of the total amount of properties for sale in Utah by month, from 2019 to present. Broken down by area, we see a steady decline in inventory, with consistent increases beginning in March 2021.

2020

2021

# For Sale - Wasatch Back

# For Sale - Wasatch Front

# For Sale - Southern Utah 13,006 12,275 11,664

10,538 9,803

1,220

688

1,011

984

1,013

1,040

1,158

1,277

1,428

1,430

6,468

969

6,917

1,018

6,350

1,123

5,803

1,379

5,781

1,468

5,471

1,661

4,397

1,848

4,401

2,021

4,591

841

6,278

2,164

5,633

8,586

801

7,644

8,683

870

958

6,328

7,564

770

859

6,688

1,079

1,031

7,314

7,204

7,684

8,407

8,759

9,322

9,720

7,787

847

8,355

799

9,144

6,565

1,386

1,596

1,668

1,663

1,528

3,412

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

umber of "For Sale at the End of the Month" which would be lower. This chart would capture any property that was listed and sold within the same month. Data is d that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and Wasatch ational Realty. Information not verifiable by the Park City Board of Realtors.

Q3 MARKET REPORT | Page 7

PROPERTIES SOLD

Properties Sold

UTAH - JANUARY 2019 - SEPTEMBER 2021

Utah - Jan 2019 to Sep 2021 2019 # Sold - Wasatch Back

# Sold - Wasatch Front

# Sold - Southern Utah

4,283

4,194 4,232

207

3,911

196

220

147

3,625

3,579

172

3,698 216

3,4

216

3,174 3,025

191

3,282

3,262

198

137

79

2,910

143

100

2,741 132

2,422

2,405 2,170

130

3,513

3,495

161

3,487

3,295

116

2,956

2,938

3,047

2,9 2,558

2,485

2,638

2,653

2,419 2,250

1,733

1,915

1,965

321

310

Jan

Feb

397

Mar

497

563

Apr

May

469

503

525

Jun

Jul

Aug

425

435

425

431

Sep

Oct

Nov

Dec

346

359

Jan

Feb

487

Mar

391

45

Apr

Ma

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby

summitsothebysrealty.com

DEFINING PROPERTIES SOLD This metric calculates the number of properties sold, by month, broken down by our three key regions: Wasatch Front, Wasatch Back and Southern Utah. Spiking in July of 2020 with 5,111 properties sold, this chart shows the cyclical nature of Utah’s real estate seasons and the above average sales that marked the end of 2020.

2020

2021

5,111 291

4,704 4,711 4,553

333

183

390

4,616 405

4,167 3,901 313

471

262

3,844 382

286

263

4,122 3,742

3,790

3,682

2,517

3,489

3,924 243

3,709 258

191

242

2,628 166

191

3,579

3,373 3,058

939

ay

3,805

3,433

9

53

3,799

2,970

3,008

2,629

1,947

580

Jun

698

Jul

629

Aug

639

Sep

632

Oct

530

Nov

3,070

3,190 2,969

2,851

2,043

454

379

419

Dec

Jan

Feb

562

543

Mar

Apr

447

May

532

472

491

482

Jun

Jul

Aug

Sep

d as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and y's International Realty. Information not verifiable by the Park City Board of Realtors.

Q3 MARKET REPORT | Page 9

TOTAL SOLD VOLUME UTAH - JANUARY 2019 - SEPTEMBER 2021

Total Sold Volume Utah - Jan 2019 to Sep 2021 2019

Total Volume - Wasatch Back

Total Volume - Wasatch Front

Total Volume - Southern Utah

1.55B

122M

143M

158M

152M

123M

130M

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

150M

151M

Jun

180M

151M

881M

958M

1,053M

186M

183M

May

168M

Apr

165M

Mar

203M

136M

Feb

175M

99M

688M

738M

1,025M

964M

1,158M

1,115M

1,321M

1,347M

1,262M

1,328M 908M

1,104M

160M

141M 616M 102M

Jan

1.23B

138M

1.05B

0.95B 0.86B

1.42

1.38B

1.15B

168M

1.21B

1.42B 242M

1.36B 239M

246M

232M

1.51B

246M

241M

1.57B

1.75B

142M

1.51B

1.72B 204M

210M

1.74B

Mar

Apr

Ma

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby

summitsothebysrealty.com

DEFINING TOTAL SOLD VOLUME This metric defines the total dollar volume of real estate sales by area. The Wasatch Back experienced exponential sales growth in 2020, with sales volume more than doubling when comparing to the same time period in years prior. The Wasatch Front and Southern Utah areas also saw growth patterns during this period. June 2021 has had the highest sold volume at 2.54 Billion, surpassing any month from last fall.

2020

2021 2.54B 2.48B 2.47B

419M

553M

509M

200M

392M

1.96B

1,616M

1,714M

1,645M

1,466M

1,517M

1,286M

May

258M

Apr

246M

Mar

262M

Feb

279M

Jan

226M

963M

Dec

274M

Nov

287M

Oct

201M

881M 245M

Sep

189M

264M

Aug

199M

262M

Jul

244M

286M

217M

Jun

1,823M

278M 1,374M

1,343M

1,564M

1,594M

1,612M

1,554M

1,734M

95M

1.35B

290M

1.45B

1,155M

172M

2.31B

436M

1.99B

1.97B

2B

ay

442M

2.13B

434M

2.10B

2.34B 2.35B

271M

645M

2.33B

620M

474M

413M

2.33B

538M

2.43B

Jun

Jul

Aug

Sep

d as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and y's International Realty. Information not verifiable by the Park City Board of Realtors.

Q3 MARKET REPORT | Page 11

AVER AGE SOLD DAYS ON THE MARK E T UTAH - JANUARY 2019 - SEPTEMBER 2021

Average Days on the Market Utah - Jan 2019 to Sep 2021 140

138

135

130

118

120

110

100

116

113

119

111

106 102

101

101

98

100

93

90

85

80

82

82

70

60

59

50

45

60

45

44

40

57

56

58 52

39

30

50

47

33

34

54

53 47 37

35

62

60

35

38

45

50

46

46

53 39 44

41

30

2

20

10

Apr

Mar

Feb

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

Jan

2020

0

Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on October 10, 2021. Properties Sold includes any property listed Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheb

summitsothebysrealty.com

DEFINING AVERAGE SOLD DAYS ON THE MARKET This metric follows the amount of days a property is available for sale. In all areas, we see this average number in steady decline. Cash of fers, ef ficient financing and robust buyer demand are driving forces in this trend.

Sold Avg DOM - Wasatch Back

Sold Avg DOM - Wasatch Front

Sold Avg DOM - Southern Utah

101

97

87

85

77

64

55

54

53 45

30

28

38 32

26 26

25

45

38

40 29

28

27

37

29

25

20 19

18

18

16

16

16

15

15

Jul

40

Jun

31

52

May

50

47 31

74

73

Apr

53

17

20 19

Sep

Aug

Mar

Feb

Jan

Dec

Oct

Sep

Aug

Jul

2021

Jun

May

96

92

Nov

0

d as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit and by's International Realty. Information not verifiable by the Park City Board of Realtors.

Q3 MARKET REPORT | Page 13

MONTHS SUPPLY OF INVENTORY (MSI) UTAH - JANUARY 2019 - SEPTEMBER 2021

Months Supply of Inventory (MS Utah By Region 2019 2.6

Wasatch Front

2.5

2.4

1.9

1.8

1.9

2.0

2.0

2.3

2.3

2.1

2.0 1.7

1

1.7

13.3

10.0 7.4 5.7

6.3

4.4

6.1

7.0

6.5

4.3

4.2

3

3.1

Dec

Nov

Oct

Apr

Mar

Feb

Jan

2.6

2.9

3.9 3.5

3.3

3.2

Aug

3.0

Jul

3.0

Jun

3.2

May

Southern Utah

3.8

Mar

7.3

9.5

8.7

Feb

7.4

8.0

8.8

Jan

8.4

Sep

Wasatch Back

15

Months Supply of Inventory refers to the number of months it would take for the current inventory of homes on the market to sell given the current

listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. 'Wasatch Back' includes all listings from Summit an Sotheby's International Realty. Information not verifiable by the Park City Board of Realtors.

summitsothebysrealty.com

DEFINING MONTHS SUPPLY OF INVENTORY (MSI) This metric is defined by how long (in months) it would take to sell all available properties currently on the market. Generally speaking, any where from four to six months of inventory is considered balanced. With each of Utah’s key selling regions well below this range, sellers

SI)

have a key advantage due to the lack of properties for sale given the current sales pace.

2020

2021

MSI 1.0

1.9

13.0

1.1

1.1

1.0

1.0

1.0

1.0

0.9

1.0

0.9 0.6

0.7

0.7

1.9

2.0

0.8

0.9

0.9

1.6

1.5

1.6

1.6

Sep

1.2

Aug

1.4

5.8

7.0 4.2

3.1

2.1

2.3

2.4

2.7

1.9

2.0

1.9

1.6

1.8

1.5

2.4

1.2

1.5

Jul

1.0

Jun

0.7

0.8

May

0.8

Apr

Jan

Dec

Nov

0.9

Mar

1.1

1.3

Feb

1.5

Oct

1.2

Sep

1.3

Aug

1.5

Jul

Jun

1.8

May

Apr

3.7

sales pace. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was pulled on July 16th, 2021. Properties Sold includes any property nd Wasatch Counties. 'Southern Utah' includes Washington and Iron Counties. 'Wasatch Front' includes Davis, Salt Lake, and Utah Counties. Prepared By Summit

Q3 MARKET REPORT | Page 15

AVER AGE AND MEDIAN SOLD PRICES WASATCH FRONT

2 5 . 1%

Average & Median Sold Prices Wasatch Front 540K

$544,282

Sold Median $ - Wasatch Front Avg Sold $ - Wasatch Front

520K

500K

$480,000

$452,369

480K 460K

440K

420K

$385,401

400K

380K

$395,000 $379,467

360K

$344,000 Oct

Jul

Apr

Jan

Oct

2021

Jul

2020

Apr

Oct

$337,300

Jan

340K

Data is aggregated from the WFMLS, and was pulled on October 10, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. "Wasatch Front" includes Davis, Salt Lake, and Utah Counties. Prepared By Summit Sotheby's International Realty.

summitsothebysrealty.com

AVER AGE AND MEDIAN SOLD PRICES WASATCH BACK

Average & Median Sold Prices Wasatch Back

28 . 2%

O N E Y E A R I N C R E A S E I N T H E AV E R AG E S O L D P R I C E 1900K 1800K

Avg Sold $ - Wasatch Back

Median Sold $ - Wasatch Back

$1,690,706

1700K 1600K 1500K 1400K

$1,454,624

1300K

$1,156,303

1200K 1100K

$1,140,854

1000K

$1,002,500

900K

$740,000 $805,000

$720,000

Oct

Jul

Oct

Jul

2021

Apr

Jan

Oct

2020

Apr

700K

Jan

800K

Data is aggregated from the PCBAOR, and was pulled on October 10, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. "Wasatch Back" includes all listings from Summit and Wasatch Counties. Prepared By Summit Sotheby's International Realty. Information not verifiable by the Park City Board of Realtors.

Q3 MARKET REPORT | Page 17

AVER AGE AND MEDIAN SOLD PRICES SOUTHERN UTAH

33. 2 %

Average & Median Sold Prices Southern Utah $535,141

550K

Median Sold $ - Southern Utah Avg Sold $ - Southern Utah

$498,514 500K

450K

$445,500

400K

$389,555

$355,396 350K

$315,500 $301,868 Oct

Jul

Apr

Oct

Jul

2021

Apr

Jan

Oct

2020

Jan

300K

$355,624

Data is aggregated from the WCMLS and was pulled on October 10, 2021. Properties Sold includes any property listed as sold that month in the respective MLS, and is not restricted to only properties sold by Summit Sotheby's. "Southern Utah" includes Washington and Iron Counties. Prepared By Summit Sotheby's International Realty.

summitsothebysrealty.com

OUR OFFICES 175 0 Park Avenue Park Ci ty 62 5 Ma in Street Park Ci ty

362 N M ai n Street Heber Ci ty

545 Main Street Park Ci ty

8020 Vi c tor y Ran ch Roa d Vi c tor y Ran ch, Kamas

Mont Cer v in Pla z a #10 5 Deer Va lley ® , Park Ci ty 1 8 35 Three Kin g s Drive, #70 S ilver S ta r, Park Ci ty 8 41 7 E Ran ch Club Trai l Dri ve Prom on tor y, Park Ci ty 7085 G le nwild Dri ve Glenwild, Park Ci ty

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“All Available Inventory” is the cumulative total number of units that were on the market for sale during the calendar month, as opposed to units remaining available for sale at month end. “Properties Sold” includes any property listed as sold for the respective calendar month in the respective MLS, and is not restricted to properties sold by Summit Sotheby’s. Data is aggregated from three different MLS databases (PCBAOR, WFMLS, WCMLS) and was compiled on October 15th, 2021. Information not verifiable by Park City Board of Realtors®. “Wasatch Back’ includes all listings from Summit and Wasatch Counties. ‘Southern Utah’ includes Washington and Iron Counties. ‘Wasatch Front’ includes Davis, Salt Lake, and Utah Counties.

Prepared By Summit Sotheby’s International Realty. ©MMXXI Sotheby’s International Realty Affiliates, Inc. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Each Office Is Independently Owned And Operated. Copyright© Summit Sotheby’s International Realty 2021.