In March 2021, the number was 1,751. Today, it is 5,839. These numbers represent all active Utah listings on the MLS (Multiple Listing Services). The difference in the two numbers is significant. This clearly holds some meaning for the real estate market. Before dissecting the significance of these indicators, allow me to digress (as I often do) for a moment.

In the book titled “The Phantom Tollbooth” by Norton Juster, he details an unsettled and aimless boy’s journey through a tollbooth and onto a road leading to lands of adventure and education. At one point, this boy, Milo, along with two of his friends, Tock (a clock) and Humbug (a giant beetle-like bug that likes to invent stories), happen upon an island that appears to be beautiful and inviting from a distance. They suddenly jump onto the island, appropriately called the Island of Conclusions, and are met by Canby, the island greeter. “Make yourselves at home,” he says. “You’re apt to be here for some time.”

When Milo asks how they arrived there, Canby responds, “You jumped, of course. That’s the way most people get here. It’s really quite simple: every time you decide something without having a good reason, you jump to Conclusions. … It’s such an easy trip to make.” Although the island appears beautiful from afar, it is not. In truth, it is quite an unpleasant place filled with rocks and tree stumps. Even Canby admits it looks better from a distance. When Milo expresses an interest in leaving, Canby informs him, “You can never jump away from Conclusions … the only way to get back is to swim, and that’s a very long and very hard way.” Ironically, the tough swim is directly through the Sea of Knowledge.

This digression gives me high hopes that we can prevent ourselves from jumping to the fateful Island of Conclusions with the aforementioned figures. From a distance, the difference between 5,839 and 1,751 would appear to conclude that the state of Utah is no longer experiencing a housing shortage. One may also, once again from a distance, see an oncoming “crash” or shift from a seller’s market to a buyer’s market, all of which would be considered a leap onto an unpleasant island in which nothing is what it may have seemed. Before doing so, I would implore you to use your field glasses before you jump. Remember, it is a very hard and long way back. Allow me to lend you some proverbial binoculars.

Let us recall that just a few years ago, the number of active listings hovered around 8,500. Although that may have been ample for the time a few years ago, it is still far from adequate now. The Utah housing market is unique. Not only are we big producers of humans here, but the numerous humans that we do produce grow up and want to stay here where they continue to produce humans as well. This coupled with heavy migration from both the East and West coasts, driven by the appeal of low crime, lower cost of living, a rock-solid economy and growth of tech firms and start-up companies, will likely continue to result in an imbalance between supply and demand in the housing arena.

The Utah housing market has been ranked as the nation’s No. 1 market, according to Bankrate.com, for lower state and local taxes, strongest pace of job growth, low unemployment and minuscule mortgage delinquencies (thus, why there are not bank-owned and HUD homes available for purchase).

Interest rates may continue to rise a bit, and escalation of home prices may soften a bit; however, we still have a heavy demand, and that is not going away anytime soon. So before jumping to conclusions, save yourself a long, cold swim. This hot real estate market isn’t going anywhere anytime soon.

Jen Fischer is an associate broker and Realtor. She can reached at 801-645-2134 or jen@jen-fischer.com.

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