Utahs housing market has a tight supply, and while we may see prices decrease somewhat, its not likely to experience a significant decline in housing values. What is the housing market like right now? We went through a real roller coaster ride the past couple of years mainly because of the pandemic. Love hunting, fishing, or anything outdoors? between 2021-12-31 and 2022-12-31. So hire an experienced top-producing agent to help you price, market, and negotiate the best deal possible. Median List Price $524,900 $285/sqft Based on all homes listed in January 2023. Additional links: Historical Utah Data From peak-to-trough, with the peak being May 2022, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on what happens with interest rates over coming months. In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. At the time of the writing, the Utah housing market remains a sellers market as the available inventory is not keeping up with the demand despite an increase in the number of houses for sale and months of housing supply. Real estate investors number by the thousands in the US. With rates hitting record lows of 2%, things are about to change in 2022 as recent trends on 30-year fixed mortgages have already come very close to 3%. As the demand for housing decreases as buyers find themselves priced out of the market by the increasing cost of borrowing money or postpone their homebuying plans to preserve their buying power, we can expect Utah housing prices to stabilize or diminish. I dont think thats happened yet.. In the beginning, Branca said his home hunt was exciting, kind of frenzied, certainly, but still manageable. Months supply of inventory: 3 up from 1 in September 2021. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. The ones who are truly making money in real estate in Utah are the investors. According to September 2022 data, some of the key market stats for the Utah housing market appear as follows: As in many other places across the country, Utah home prices have increased faster than usual in the aftermath of the COVID-19 outbreak. However, this increase in inventory is not due to newly listed homes but properties staying on the market longer, as only 3,764 homes were listed in September 2022, 20% less than the year before. Utah remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. -0.63% home value decrease month over month. There are currently 8,551 residential homes for sale in the United States. With uncertainty in the economy, predictions for Utahs housing market vary greatly. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. Therefore, with the current small but significant price change, a seller will realize enormous overall growth and equity increase. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. With the market starting to change, weve seen a decrease of 25.3% in sales in the Utah housing market, and 49% of homes had price drops. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. Homes sold fastest in Salt Lake County and slowest in Summit County. If they hadnt been so aggressive in 2020 and 2021, wed be talking about unemployment now rather than inflation. He also noted it was really Congress that juiced the economy with so much one-time stimulus money, not the Fed. When we look at just how much weve peaked earlier this year, I think well start seeing negative year-over-year readings late winter, early spring, Eskic said. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. How far will they fall? This trend continued through the pandemic resulting in record-high home prices and rental rate growth. However, like we saw during the pandemic housing frenzy, that could all vary depending on the region. As of November 2022, four consecutive 75 bps increases brought mortgage rates over 7%, reaching their highest level since April 2008 and standing over twice higher as the same time last year. Peak-to-trough, with thepeak being May 2022, he expects prices to decline by a percentage somewhere in the teens, depending on what happens with interest rates over coming months. He has taken his life experiences working with people and transitioned into helping families and individuals make the very best decisions when it comes to real estate. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. Just remember, pricing has never been more critical than right now. But now, those days of wild buyer demand and a frenzy of seller activity is over, and real estate agents outnumber active listings. In Utah, housing prices have begun to decline, down from their peak in May, when the median sales price of Salt Lake County homes was $565,600. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. He expects buyers and sellers will step back and wait for the dust to settle, many of them locked in at low, 3% mortgage rates that helped send the nations housing market into a frenzy in 2020 and 2021. At the very least, folks can expect some sort of moderation over the next few years but not a decline. Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. Peak-to-trough, with the peak being May 2022, he expects prices to decline by a percentage somewhere in the teens, depending on what happens with interest rates over coming months. The top 5 states homebuyers searched to move to were Florida, Texas, Tennessee, Arizona, and South Carolina while California, New York, District Of Columbia, Illinois, and Massachusetts were the top 5 states homebuyers searched to move from. . Each year, the Sal. This was marginally below the rate of the prior year but impressive all the same. The Utah housing market is amid a major shift. He is married with 7 children. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. Therefore, Wood is predicting a couple of quarters in 2023, with home prices likely the most vulnerable in the first and second quarter of the year. Utah faces a shortage of 31,000 homes. As mortgage rates are at record highs in 20 years by 7.08%. Its more likely that as mortgage rates continue to decline, the market will find a solid floor in the summer and prices will resume their upward trend as we move into the fall. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. Thats where it gets tough. The number of days on the market had also increased sharply at 39 median D.o.M., compared to 15 the previous year, further indicating that the days when properties were being snatched off the market as soon as they were listed are long gone. This would place . That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. The median sale price for a house in Salt Lake City has reached $550,000, increasing by 6.3% compared to the previous year, and the median number of days on the market was 32, compared to 17 in September 2021. No, you shouldnt wait to buy a home. However, they expect the market to enter a correction that will persist into 2023 thanks to the Federal Reserves aggressive rate hikes to combat inflation. I think buyers will adjust, for one thing, Wood said, pointing to a chart that he said showed its very rare in Utah for housing prices to decline.. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Is the Utah housing market going to crash in 2023? Median home price: $533,500 a 5.6% Y.o.Y. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. After seven years of Salt Lake County sales averaging 18,000 homes, the high prices of 2023 will mean sales will not top 13,000, he predicted, and likely range between 11,000 to 12,000. Wood, who has studied Utah's housing market for decades, forecasts that real estate sales will remain steady in 2022 while home prices will rise 10%-12%. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. Right now, its close to 5. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. A high or growing percentage of homes selling above list. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. We always have deceleration in the rate of increases as the cycle plays itself out. Median sale price: $611,600. He has a natural inclination to the arts and creatives. We hope that by publishing this Utah housing market forecast 2022 edition, we have shed some light and provided insight into some of the questions and concerns prospective investors and buyers may have. After the next seven months, the median price. Utah Housing Market Forecast in 2023. We go back to the 70s, for example, Eskic said. Heres why, Buying a house? Imagine earning over $100,000 a year and being qualified to buy a half-million-dollar home but still not being able to swing it. Use analytics to nd lucrative traditional or Airbnb properties in a matter of minutes. The average time it took to sell a home in the counties covered by this report rose 27 days compared to the same period in 2021. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. Do not sell or share my personal information. Preston was born in Provo, Utah, and raised in Spanish Fork, Utah. The U.S. housing market is going through what Federal Reserve Chairman Jerome Powell has called a difficult correction and a reset as it comes off the tail end of a pandemic frenzy fueled housing bubble. In its fight with record inflation levels throughout 2022, the Fed made a series of aggressive borrowing rate hikes, which translated to a spike in mortgage rates that priced or spooked buyers out of the market. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. You can try RealAdvisor home value appraiser, to get the value of your home in Utah. AirDNA vs. Mashvisor: Which One Is the Better Source of Airbnb Data? The median days on the market was 70 days, up 47 year over year. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. Nationwide, an increasing number of firms have downgraded their forecasts and predict U.S. home prices will continue to fall in 2023, Fortune has reported. increase. Utah Housing Market at a Glance September 2022 Even this far into 2022 with the mortgage rate hikes, Utah remains one of the hottest markets. The Utah housing market is following many of the same patterns observed nationwide. 2.1 months of housing inventory. He's predicting Utah home prices will drop 9% year over year in 2023. Yun has said the margin of price declines will likely depend on the region. We break down our data by county, but we cover major cities in this region including Salt Lake City, West Valley City, Provo, and West Jordan. In June 2020, the median sales price across Utah averaged $363,600 and has now jumped to $580,000. Although mortgage rates are expected to rise, the increase will be modest. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. Utah Housing Market Overview What is the housing market like right now? Even this far into 2022 with the mortgage rate hikes, Utah remains one of the hottest markets. Even as the cost of borrowing falls, home prices in expensive markets will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer. Other Regional Data. After a big boom over the past two years, there will essentially be no change nationally in home prices in 2023, said the National Association of Realtors chief economist Lawrence Yun. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year. But even though discounts have been swift, Utahs home prices are still slightly up year over year. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. This data does not reflect actual moves. According to Realtor.com data, the current median days listed in Utah is 52, the highest since the onset of the pandemic, but still a ways away from pre-pandemic figures. The question is, how far will that correction run and what will it mean for home prices in 2023? It is equally impressive to see that the unemployment rate remained at a very low level even as the state added over 52,400 people to the workforce. 2022 housing market forecast My current forecast is that mortgage rates will trend lower as we move through the year. Just to give you an idea, Utah Association of Realtors president Dave Robison said that in-migration is hugely impacting Utah real estate. The 2021 Utah housing market will be long remembered for its record-breaking price increases. The migration during the Pandemic contributed to the increased demand in the Utah housing market and an increase in housing prices. First-time homebuyers will need to be successful in the 2022 housing market if we are going to see the homeownership rate begin to climb again. NerdWallet reports that 2022 will see a low end of 3,4% according to Fannie Mae and will reach 4% by the end of the year as predicted by the Mortgage Bankers Association. The average sale price in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. For renters, these relentless price increases mean the path to ownership has narrowed even further. Focus on the unbelievable increase you have gained over the past 10, 5, or even 2 years! The Utah housing market became one of the most competitive in the country, especially in areas like Salt Lake City and St. George. All Rights Reserved. The Utah housing market is poised for economic growth, continually making it a desirable place to live, bringing with it a demand for homes, straining supply, and causing prices to remain and increase in value. Eskic said it all comes down to affordability. The bull market that has been in place for quite some time appears to have lost its momentum. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Single Family Rentals Facing Challenges in 2023, January 2023 Mortgage Rates: What to Expect, Existing Home Sales Fall in November 2022. Wood, the Ivory-Boyer Senior Fellow at the University of Utahs Kem C. Gardner Policy Institute, detailed his forecast report commissioned by the Salt Lake Board of Realtors, explaining why he still feels optimistic for real estate even if 2023 wont be a year of celebration.. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. From peak-to-trough, with the peak being May 2022, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on what happens with interest rates over coming months. In December 2022, Cache County home prices were up 2.1% compared to last year, selling for a median price of $444K. Home sales: 3,219 26.7% less than a year ago. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. While interest rates remain high, the coming year will likely see continued cooling of the housing market in Utah; however, lack of supply will buffer most markets. 27.7% of homes sold above the asking price. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. An increasing population and a shortage of homes have increased house prices in Utah. Three of the top ten most overvalued US housing markets are in Utah. How is the real estate market in Utah? 28.7% of homes sold above the asking price, reaching a median sale price of $525,000, which represents a 7.8% increase in the past year. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. In addition, people are moving to Utah because of the family-friendly environment, high-ranking school systems, and endless outdoor activities available along with the National parks. Once the market rebounds, buyers can be in an even more powerful position when the market shifts back to a more lopsided sellers market. Join Us What is the housing market like in Cache County today? Are there enough homes for sale to meet buyer demand? Prices were 3.7% lower than in the third quarter of 2022. Branca said hes struck by how wild todays home buying reality is. Industry experts and analysts have recently released their different takes on various US housing markets. The median price of a home in the United States is currently $518,200. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. The median price of a home in the United States is currently $518,200.. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! RELATED: 'It's daunting:' How housing costs are affecting Utah's ski resort staff Listing prices, rents, and mortgage rates are all expected to climb while income rises. (Now) its resetting, its balancing, its coming down.. High-cost areas like San Francisco, he said, will see a 15% price decline. To ensure a good return on investment, we encourage real estate investors to perform their due diligence and seek out the help of local Utah real estate professionals. Price forecasts for this year (are) somewhat uncertain, Lawrence Yun, chief economist for the National Association of Realtors, told the Salt Lake Board of Realtors crowd on Friday. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. Next came Sacramento, Las Vegas, Phoenix, and Tampa. In 2022, that was Joseph Brancas reality, along with plenty of other Utahns who wanted to join the mad dash to homeownership, but ultimately ended up walking away. 2020 further increased that number to almost 73% as median home sales prices reached $380,000. The housing market in Utah is still highly competitive since the population continues to grow, the job market remains strong, and the quality of life is high. Check! Over 2022, the Federal Reserve has been battling sky-rocking inflation with their number one weapon, interest rates. For the average mortgage, the difference translates into approximately a $1000 difference for a similar home, representing tens of thousands of dollars over the life of the loan. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. However, prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels, noted Daniel Hale, Realtor.coms chief economist. Utah is expected to continue its rapid growth and will need to see an increase in available housing to accommodate the incoming population. Comparatively speaking, I make more money than my parents combined income at my age and still cant afford to buy something at a significantly lower quality than what they were able to purchase at that same age, Branca said. If rates had risen to around 4.5%, the train would still go. Scotty Fletcher, left, and his partner Joseph Branca pose for a photo in their apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. I have moved the needle accordingly. Utahs housing experts continue to shy away from the word crash, since what happened in 2022 is still nothing like what happened after the 2006 housing bubble popped. On average, the number of homes sold was down 34.7% year over year and there were 1,769 homes sold in January this year, down 2,712 homes sold in January last year. About Us Sellers are reducing prices as homes stay on the market longer. We also observe a lengthening of the time spent on the market and a decrease in both new listings and sales, which points towards a general slowing down of the Utah housing market. So Branca wasnt expecting to buy his dream home. must have viewed at least 10 homes in a three month period. Prices, though theyre on a downward trajectory, are still up year over year by single-digit percentages at least for now. #UPDATE firms predicting that U.S. home prices will continue to fall in 2023:@FannieMae@Zondahome@JBREC Zelman & Associates@KPMG@GoldmanSachs@MorganStanley@WellsFargo@MoodysAnalyticsTD Bank@CapEconomics@PantheonMacroAmherstING@RedfinYieldstreet. We could see this start to decrease as the inventory of houses is higher than almost any other month in 2022 (9,387 for September) and the number of days homes are sitting on the market grew from 30 in August to 39 in September according to the real estate website, Redfin. However, despite the increased inventory in the past months, there were only three months of housing supply available in September 2022, still a long shot away from the five to six months required for a balanced market. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. Inflation is outpacing most salaries, decreasing the value of the dollar. , Homes that sold above list price likely received multiple offers. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. Despite the expensive prices, the inventory cannot keep up with the growth pace. Strong job growth cities like Boise and Salt Lake City are harder to forecast, he said, as affordability issues keep first-time buyers from getting into the market. That is, after a summer of twist and turns, when prices peaked, interest rates went sky high, buyers were shocked out of the market, and sellers were saying, Wait, how come were not selling the home in two days? Right now, the continued rise in both mortgage rates and home price have kept many out of the housing market. While they both agree the market is in the midst of a price correction after two years of runaway demand amid the pandemic housing frenzy, they have differing outlooks for just how deep that price correction will run next year. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. Historically, brief and prolonged price declines in Utah went hand in hand with joblessness and recessions, both of which dont seem likely in the next two to three years. Families flourish in Utah. Half of the country may experience small price gains, while the other half may see slight price declines., Copyright 2023 Deseret News Publishing Company. Here are Utahs metropolitan areas with the hottest housing markets for volume. The party was over. Homes that sold above list price likely received multiple offers. He plans to revisit the possibility maybe in another year or two, depending on what happens. It would be a huge understatement to say that it has upended the way we do things in the real estate industry and has caused some major disruptions and setbacks in many peoples plans. Wood interjected, saying hes got to defend the Fed. Here are what other organizations and firms are predicting: Glenn Kelman, CEO of Redfin, predicted on a Jan. 4 episode of Barrons Live that the real estate market, particularly when it comes to real estate agents, will experience a painful constriction in 2023. It has been one of if not the most competitive markets in the US in 2021. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. Wasatch County makes its way to our Utah housing market forecast for 2022 because it has attracted big-city folks from San Francisco and New York for relocation. The cops came and busted everyone.. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. Therefore, the impact of increasing interest rates has been felt more in the state than in other parts of the country. Salt Lake Housing Market Forecast with Real Estate Prices for 2032: August 2032: Open: 666286: Min: 635950: He graduated from Spanish Fork High School. On average, the number of homes sold was down 34.7% year over year and there were 1,769 homes sold in January this year, down 2,712 homes sold in January last year. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. Shouldnt I wait for mortgage rates to decrease before I buy? Wood said he was a little bit more optimistic, predicting minor blips that will stabilize into the green after only a few quarters. Sellers could no longer do whatever they wanted, Perry said, and suddenly buyers had more options at least those who could still afford to buy. 1 housing market in the nation for 2022. The client gave a slightly crooked smile to suggest that I am not only biased but also a Realtor who makes a living by selling properties in Utah. Since Utah house prices are higher than the national average, it should come as no surprise that the demand has gone down noticeably since July 2022. Oakland Real Estate Market: To Invest or Not to Invest? Buyers finally have market power. While the market in Utah is feeling a correction similar to the rest of the Nation, it weathered the 2008 recession relatively well and is expected to maintain a strong housing market. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. Its going to be tough for home builders, Wood said. If you would like to buy a house in this dynamic state, the best time to house hunt is in the early spring (April) when inventory is at its highest in preparation for the hot summer real estate market, and Utah house prices are at their lowest. Some investors flip houses, others wholesale them.
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