Salt Lake City is the capital and most populous city of Utah, with a population of 200,133, Salt Lake City housing market is somewhat competitive, with listed properties receiving three offers per listing and 24.5% of them selling above the asking price. West Valley City is assimilated to a suburb of Salt Lake City, but it is also the second most populous city in the state, with 140,230 residents. 2022 housing market forecast 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. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. The party was over. There are currently 8,551 residential homes for sale in the United States. I just felt totally iced out, Branca said. The average months of supply is 3 months, up 3 year over year. Will it pop or deflate?, A U.S. housing bubble is brewing. Wood interjected, saying hes got to defend the Fed. 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. 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. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Love hiking, biking, or camping? While Utah is below the national average in many areas, home prices have managed to remain strong. In 2022, Redfin itself went through two rounds of layoffs. Utah will see minor year-over-year price declines in the first and second quarter of 2023, but prices will begin to stabilize by the third and fourth quarter, he said. Woods research colleague at the Kem C. Gardner Institute , Dejan Eskic, is more bearish, predicting Utah home prices will drop 9% year over year in 2023. Eskic said it all comes down to affordability. 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. The market was suddenly plunged into ice cold water when the Federal Reserves war with record levels of inflation sent mortgage rates skyward, and the mask that helped drive home prices so high suddenly lifted. Months supply of inventory: 3 up from 1 in September 2021. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. How much do homes in Saint George, UT cost? They can step back and wait for the dust to settle., As a result, Wood predicted price declines that have been tumbling since May will stabilize by the third quarter of 2023, and the annual median sales price for 2023 will likely be within a few percentage points one way or another of 2022., Worst case scenario, Wood added, prices down about 5%; best case scenario, prices equal to 2022.. Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. Thats the story of 2022. All of this, of course, depends on how local markets fair. Contact Us, Real Estate Blog According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy. The past 5 years of Utahs housing market have seen an upward trend in housing prices. But what about the increase in interest rates? 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. 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. Prices, though theyre on a downward trajectory, are still up year over year by single-digit percentages at least for now. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. Well, perhaps I cantAlthough based on facts, I believe I can. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. It has been one of if not the most competitive markets in the US in 2021. So Branca wasnt expecting to buy his dream home. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. If inflation continues to fall, as I expect it will, rates will continue to drop. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. Months supply of inventory: 3 - up from 1 in September 2021. Heres why, Buying a house? The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Salt Lake Housing Market Forecast with Real Estate Prices for 2032: August 2032: Open: 666286: Min: 635950: 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. When he thinks about what his parents life was like in the same window of time in their lives, he said it blows his mind. In addition, the number of homes has increased along with significant population growth. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. 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. Therefore, with the current small but significant price change, a seller will realize enormous overall growth and equity increase. The cops came and busted everyone.. million Redfin.com users who searched for homes across more than 100 metro areas. So I hope the industry is close to right-sized and things can get better from here, Kelman said. The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. Since the pandemic began, housing prices in the Beehive State have skyrocketed to the point that more than 50% of households can no longer afford to buy median-priced properties in the state. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. Real Estate Investing for Beginners: Where to Invest in Real Estate, Airbnb Rental Income in 2021: The 100 Best US Cities, Why You Should Be Investing in San Antonio Real Estate, Top 9 Most Profitable Airbnb Locations with Double-Digit Cash on Cash Return, Research Shows the Nashville Housing Market Is Hot for 2019. Given that interest rates more than doubled in less than a year, its impossible for there not to be an impact on the housing market. Please check your email to verify your account. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. 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. A realty sign at a property in the Salt Lake City on Friday, Jan. 6, 2023. Utahs economy continues to add jobs, but the pace of growth has started to slow. Boating in Utah can be an unmatched experience. Utah continues to be a light upon a hill to others throughout the States and even worldwide. 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. The Utah housing market is amid a major shift. The Utah housing market has been following similar trends as the ones observed nationwide, including a white-hot real estate market characterized by a low inventory and high demand for housing. There are currently 8,551 residential homes for sale in the United States. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. 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. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. The music stopped. But housing costs werent nearly as high back then, Eskic interjected. Realtor.com recently named the Salt Lake City region as the expected No. 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. Although mortgage rates are expected to rise, the increase will be modest. This, combined with higher mortgage rates, likely impacted sales in the fourth quarter. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. After the next seven months, the median price fell by 14% to $485,829, erasing month-over-month percent increases until "finally turning negative 2.1% in December," Wood wrote in his report. 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. By Sarah Burns of The Salt Lake Local Real Estate Group, October 21, 2021 Utah State #2 in Housing Price Increases Utah's equity gains sat at 28.3% between 2020 and 2021, making Utah #2 in housing . This trend continued through the pandemic resulting in record-high home prices and rental rate growth. The latest migration analysis is based on a sample of about two 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. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. So unless we have a real serious recession, I think prices have some support given our economy., Wood also said even if home prices dropped 10%, they wouldnt set off a wave of foreclosures, unlike what happened in 2008, which just pulled prices down. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Although predicting the future is always an exercise of caution, it is unlikely that the Utah housing market will collapse in 2023. 2024 will be better, Jim Wood, one of Utahs leading housing experts, told the crowd gathered at the Grand America Hotel in Salt Lake City for the Salt Lake Board of Realtors 2023 housing forecast Friday. Key Market Stats for the Utah Housing Market According to September 2022 data, some of the key market stats for the Utah housing market appear as follows: Median home price: $533,500 - a 5.6% Y.o.Y. While home prices have decreased about 3% month over month, home prices are up nearly 9% year over year in August. Below is the latest Utah housing market trends analysis. And due to Utah being a robust economic powerhouse, this state will be poised for the quickest and most powerful market shift back to an unbalanced sellers market. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. He has a background in sales and marketing and construction as a Project Superintendent. And to Branca, that meant home ownership became completely inaccessible.. 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. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. I dont think thats happened yet.. Property prices still remain high. Its falling off faster than we thought it would.. 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. Therefore, the Utah housing market is to be expected to slow down. The median days on the market was 70 days, up 47 year over year., The direction and pace at which home prices are changing are indicators of the strength of the housing market andwhether homes are becoming more or less affordable. Alfred is a content writer with years of experience writing about the US housing market. In addition, while year-on-year figures still show growth, monthly data is beginning to tell a different story of dropping prices, a trend that is expected to continue through the rest of 2022 and into 2023. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. There are currently 8,551 residential homes for sale in the United States.. Yun has said the margin of price declines will likely depend on the region. 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. 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.. Over the next 12 to 18 months, Eskic said he expects homebuilders to offer big discounts. Not necessarily dramatic price drops, but more buyer incentives and rate buydowns, perhaps offers to finish basements. The strong demand and limited supply of home inventory will push against price declines and keep home prices relatively stable over time. Realtor.com has predicted that the Salt Lake City region will be the top housing market in the country for the year with an anticipated price and sales growth of 8.5% and 15.2% respectively. Three of the top ten most overvalued US housing markets are in Utah. The West was ground zero for the pandemic housing frenzy and has also been one of the first areas to see home listing prices getting slashed as the market corrects. Heres what volatile mortgage rates are doing to your purchasing power, Utah housing prices down from spring peak but theyre still higher than last year. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. However, as the level of Utah housing prices outstripped the national average, the demand is bound to decline as salaries are not increasing nearly as fast as property prices. If you find it useful, please properly attribute this resource with a link. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. 2.1 months of housing inventory. 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. If you are using a screen reader, or having trouble reading this website, please call Redfin Customer Support for help at 1-844-759-7732. 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. 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