Real estate investors number by the thousands in the US. So Branca said he made the decision to back out of the market, hoping to maybe consider buying again when interest rates and potentially prices come down. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. 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. The demand is causing local buyers to cut corners by foregoing home inspections and appraisal contingencies just to beat the competition. Sign up now for a free 7-day trial and get 15% off on your subscription. For renters, these relentless price increases mean the path to ownership has narrowed even further. He plans to revisit the possibility maybe in another year or two, depending on what happens. Love hiking, biking, or camping? 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 counties covered by this report added more than 35,000 new jobs over the past year, which was also a growth rate of 2.6%. This gives us a 23.7% combined overall growth rate This projected growth puts them ahead of other booming markets like Boise City ID, Spokane WA, and Indianapolis IN. Even a two-year period will historically yield an increase in equity in the Utah housing market. CA License #01950016. An increasing population and a shortage of homes have increased house prices in Utah. The cops came, quipped Dejan Eskic, senior research fellow at the University of Utahs Kem C. Gardner Policy Institute, one of Utahs leading housing experts. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. The rising inventory, coupled with listing price growth dropping below 10% for the first time in a year, offers some positives for homebuyers, Realtor.com stated in its report, as they may have more options and more time to make a decision on a home purchase.. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. 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. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. About Us Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year. Therefore, the Utah housing market is to be expected to slow down. The latest housing data shows the median priced home in Utah's most populated county increased to $550,000 in the third quarter of 2021. Thats the story of 2022. Oakland Real Estate Market: To Invest or Not to Invest? In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year.The number of newly listed homes was 1,954 and up 1.4% year over year. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. 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. If inflation continues to fall, as I expect it will, rates will continue to drop. The governor said his proposed budget should translate to about 1,100 new low-income units across the state. Powell, the Feds chairman, has indeed called it a pandemic frenzy housing bubble, but he and other experts all have consistently said its not like 2007 and 2008. The lights shut off. 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. Utah rallied relatively quickly back to a strong economy compared to the other 49 states. These factors positioned Utah in the top spot on the Bankrate Housing Heat Index. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. How is the real estate market in Utah? For this reason, despite the high median property price, investors in rental properties are most likely to enjoy very good returns. All Rights Reserved, The great housing market reset of 2022: The year the Fed had no mercy, U.S. navigating pandemic housing bubble, Fed chairman says. The Midwest, he said, will likely see minimal price increases.. Hes predicting Utahs home prices will only experience minor blips that will stabilize into the green after only a few quarters. Right now, its close to 5. Windermere Foundation Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. Below is the latest Utah housing market trends analysis. Branca said hes grateful that hes employed, has a handsome income, and while hes sad that the market was so difficult to navigate for his situation, it felt much worse to realize just how many other Utahns the market has priced out. Hang in there. Peak-to-trough, with the peak being May 2022 , he expects prices to decline by a percentage somewhere in the. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. Will it pop or deflate?, disagree over how much home prices will decline, Why two housing experts disagree on how much Utah home prices will drop in 2023, Housing market is correcting but Utahs affordability crisis isnt going away. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. It took an average of 55 days to sell a home during the fourth quarter. Rising financing costs will hinder housing demand and we may see home sales cooling. 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%. Yes! Mashvisors Utah housing market forecast 2022 and pretty much all other real estate forecasts for the year have identified Salt Lake City metro area as the countrys hottest housing market-beating other burgeoning areas like Boise ID and Spokane WA. But housing costs werent nearly as high back then, Eskic interjected. The cops came and busted everyone.. The median price of a home in the United States is currently $518,200.. Thats where it gets tough. 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. With uncertainty in the economy, predictions for Utahs housing market vary greatly. 30-year mortgage rate: 5.59000%. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. Wallethub found Utah is the. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. In its December 2022 monthly report, Realtor.com said its monthly housing data showed a housing market thats continuing to cool, with the number of homes for sale up by 54.7% compared to the same time last year. 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 months of supply is 3 months, up 3 year over year. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Homes on the market: 11,172. 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. After the next seven months, the median price. I have moved the needle accordingly. The Typical U.S. Home Changes Hands Every 12 Years, Down From 2020 Peak, Market Recovery Hampered by High Housing Costs, Low Supply in January, Housing Market Update: Sale Prices Flatten, Demand for Mortgages Falls as Rates Climb, Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade, Redfin Predicts a More Balanced Housing Market in 2022, Housing-Market Mayhem: U.S. Home Sales Likely to Hit Record High of $2.5 Trillion In 2021, REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. The states unemployment rate in November was 2.2%. Additionally, both Wood and Eskic predict Utahs estimated 31,000-unit housing shortage will continue to keep home prices high, even if the state sees some price drops, so they expect Utahs housing affordability crisis to remain a persistent issue that is pricing out more than 75% of Utahns from affording the states median-priced home. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. Forecast for 2022 High prices, likely interest rates increases, listing . However, it is also the third-most populous city in Utah, with a population of 116,961. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! 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. Is the Utah housing market going to crash in 2023? 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. As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Price growth rates, especially in 2021, were nothing short of astounding. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Otherwise, the story is similar to many other states, with the number of homes sold decreasing, days on market increasing, and almost half of the listings dropping their price this month (48.9%). He has a natural inclination to the arts and creatives. 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. Additional links: Historical Utah Data 2020 further increased that number to almost 73% as median home sales prices reached $380,000. Nationwide, housing pandemic hot spots in the West have been among the first to see sale prices slashed. When he first started looking in November 2021 and into early 2022, Salt Lake Countys median single-family home price had hit $580,000, up 24% from a year earlier, according to the Salt Lake Board of Realtors. Terms . Reluctant sellers and priced-out buyers, Wood said, will mean 2023 will mark a year of slumped home sales. Hes employed as a professional actor and director of marketing and advertising at Hale Center Theater Orem, as well as director of communications at the Salt Lake Acting Company. AirDNA vs. Mashvisor: Which One Is the Better Source of Airbnb Data? Median home price for Salt Lake residents over the last year was $564,062. 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. Like Salt Lake City, the West Valley City housing market is competitive, with listed properties receiving four offers on average and selling after 41 days on the market. The Utah housing market became one of the most competitive in the country, especially in areas like Salt Lake City and St. George. By April, mortgage rates had begun shooting up. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. price indicates that the housing market is competitive and bidding wars are becoming more common. between 2021-12-31 and 2022-12-31. They. Half a million people from one state alone. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. The latest migration analysis is based on a sample of about two From peak-to-trough, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on interest rates. 2022. Its important to keep a tab on the housing market and current trends. 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. However, because of the growing number of migrants in the state, Utah is now faced with what experts say is a severe imbalance in its housing market. Therefore, with the current small but significant price change, a seller will realize enormous overall growth and equity increase. Hes predicting Utah home prices will drop 9% year over year in 2023. But Wood is more bullish than Eskic. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. They say it will pose challenges, especially for homebuilders, but also rebalance a market thats priced some two-thirds of Utahns out of affording the median priced home. Housing prices have skyrocketed so much, now more than half of Utah's households are unable to afford the state's median priced home, which for single-family homes was $460,000 in 2021. 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. 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. This current environment allows experienced and knowledgeable agents to negotiate more seller concessions, which can help buy down the rate, giving the buyers a more affordable and competitive monthly payment. 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. It was the year that put homeownership far out of reach. Moodys Analytics expects a peak-to-trough U.S. home price decline of 10% or a 15% to 20% decline if a recession hits. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. 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. Cache County Housing Market Trends. Median List Price $524,900 $285/sqft Based on all homes listed in January 2023. -0.63% home value decrease month over month. However, the sale volume has decreased significantly in the past year, with 3,219 houses sold in September 2021, representing a 26.7% decline in year-over-year comparisons. Statewide, housing . In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. The average rate for 2022, based on the forecasts of seven organization . Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! You can try RealAdvisor home value appraiser, to get the value of your home in Utah. Prices were 3.7% lower than in the third quarter of 2022. One of the many reasons, and perhaps one of the most important reasons folks are moving to Utah, is because this great state boasts one of the strongest economies and job markets in the Nation. The Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! So players should expect to see both challenges and opportunities in 2022. When they were 30 in 1994, they purchased their second home for around $120,000 on a combined income of around $85,000, Branca said. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. It would slow, but it wouldnt be stopped like it is now.. Still seemed achievable. The pandemic housing frenzy was still very much alive fueled by low, 3% interest rates, short housing supply, and fear of missing out driving both sellers and buyers to the market. Inventory is on its way up, with 13,795 homes for sale in September 2022, 25,3% more than the previous year. The time to purchase your primary residence is today and has almost always been today. Over 2022, the Federal Reserve has been battling sky-rocking inflation with their number one weapon, interest rates. Heres what volatile mortgage rates are doing to your purchasing power, Stuck between rent hikes and high home prices, this family is scraping by to afford a home, still cant afford to buy something at a significantly lower quality, How the housing market is making boomers richer and millennials poorer, how many other Utahns the market has priced out, 79% of Utah households couldnt afford the states median priced home, Why two housing experts disagree on how much Utah home prices will drop in 2023, National Association of Realtors chief economist Lawrence Yun, What state lawmakers are doing to address Utahs housing crisis, Department of Labor reports that child labor has increased by nearly 70% since 2018, Feds hardwire child care benefits to $39 billion in CHIPS Act funding, Grit and circumstance: Bestselling author Angela Duckworth brings her wisdom to BYU, The starter home in Utah is extinct: How first-time homebuyers could get 20K for new homes, How a new service aims to help teens remove explicit internet images. 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