Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. While Utah is below the national average in many areas, home prices have managed to remain strong. Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. The cops came and busted everyone.. 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. Utahs economy continues to add jobs, but the pace of growth has started to slow. Therefore, the impact of increasing interest rates has been felt more in the state than in other parts of the country. 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. While home prices have decreased about 3% month over month, home prices are up nearly 9% year over year in August. Buyers were actually offering pizza, cookies, even Utah Jazz tickets to literally sweeten the deal, all kinds of crazy stuff that real estate agents had to make sure to handle correctly. 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. Thats when buyers found their affordability ceiling. What is the housing market like right now? 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. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. -0.63% home value decrease month over month. 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. That was also a time when the national economy and Utah faced a struggling job market, Wood noted. The median home price has increased from $345,000 in September 2019 to $553,500 in September 2022, with a peak of $577,500 in May 2022, representing a staggering 60.43% increase in 36 months, well above the national average. The average annual profit of property investment was: 10.098% in 2018; . The question is, how far will that correction run and what will it mean for home prices in 2023? Therefore, although Utah home prices may decline in the coming months, the Utah housing market should remain relatively strong and correct itself for more sustainable growth. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. Mashvisor is a website that offers real estate investors access to several tools and a wide range of updated and accurate data to help make the process of finding a suitable investment property faster and easier. Difference Since Last Month -$ 20,090 ( -3.7%) Key Takeaway The list price of homes in Saint George has decreased by 3.7% since December. 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. Dont focus on the loss you may believe you are experiencing if you sell today. But having price declines is really unusual, Wood said. On average, homes in Cache County sell after 57 days on the market compared to 12 days last year. Realtor.com recently named the Salt Lake City region as the expected No. Moodys Analytics expects a peak-to-trough U.S. home price decline of 10% or a 15% to 20% decline if a recession hits. Predictions include price drops, terrible consolidation, but better buyer balance, 2022 was a roller coaster year for the housing market, growing number of experts and firms are predicting U.S. home prices will fall, nations median home price ballooned by over 41%, The great reset of 2022: The year the Fed had no mercy on the housing market, U.S. navigating pandemic housing bubble, Fed chairman says. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. When is the best time to buy a house in Utah? We dont have that.. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Please check your email to verify your account. It isnt easy to quantify the benefits of delaying purchasing your primary residence. 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 dataset excludes all rentals data. This would place . The bull market that has been in place for quite some time appears to have lost its momentum. 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. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. In addition, Utahs median listing price is 36% more than homes across the United States. All Rights Reserved, What will 2023 bring to the housing market? 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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. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! 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. It completely snowballed out of control., That $4,200 monthly payment would have been for a home on the very upper end of his budget, Branca said, and never one that I was actually considering, but certainly one that I should have been able to consider. 2.1 months of housing inventory. All of this, of course, depends on how local markets fair. The Utah housing market does not yet significantly favor home buyers but, given the data discussed in this report, it has certainly shifted away from sellers and into neutral territory. Utahs housing experts disagree over how much home prices will decline, though they remain confident that 2023 will not bring a full blown, 2007-like crash, and that Utahs strong job economy will still largely insulate it from any negative impacts of a recession. Once the market rebounds, buyers can be in an even more powerful position when the market shifts back to a more lopsided sellers market. Utah has seen a significant increase in population over the past decade, which will likely help with the influx of home listings once everyone gets used to the new lending rates. Doing read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 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? But when mortgage rates ticked up, he said it quickly became apparent that he wasnt going to be able to buy a home with, say, a $1,600 monthly mortgage payment. In December 2022, Cache County home prices were up 2.1% compared to last year, selling for a median price of $444K. 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. 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. For this reason, despite the high median property price, investors in rental properties are most likely to enjoy very good returns. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Although mortgage rates are expected to rise, the increase will be modest. Hes predicting Utah home prices will drop 9% year over year in 2023. The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Contact Us, Real Estate Blog 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. Or if its little more meaningful declines, a 10% decline, take advantage of those because 10 years from now youll see much better conditions.. The Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. These factors positioned Utah in the top spot on the Bankrate Housing Heat Index. The music stopped. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. Now, we still have a very strong job market, and we expect the growth rate is going to come down a little bit in 2023 in jobs, but I still think its going to be a strong market, Wood said. 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. Heres why, Why are house prices so high? From peak-to-trough, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on interest rates. whether homes are becoming more or less affordable. Average home value: $562,693. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. Heres why, 2021: The year of the shocking home price, Utah made a dent on its housing shortage in 2021 but is still 31,000 units short, Buying a house? Yes! 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. About Us Utah benefits from a strong economy, and, despite Utah housing prices being higher than the national average, there is still more demand for houses than available inventory. 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