Right now, its close to 5. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. The ones who are truly making money in real estate in Utah are the investors. To be included in this dataset, a Redfin.com user Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. (2023), Cost of Living in Hawaii: What You Need to Know (2023), How to Find the Best Mortgage Rates (2023), Outdoor activity opportunities are unlimited. According to data collected in September 2022, the latest available at the time of writing, the median sale price for a house in Utah stood at $533,500, representing a 5.6% increase compared to September 2021. Others argue the apartments meet the growing demand for high-end housing in Salt Lake City, it's the latest development in what's been an expensive year to find and afford a home. Median sale price: $611,600. This would place . The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. 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. 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. So many factors come into play. 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%. 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. An increasing population and a shortage of homes have increased house prices in Utah. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. However, there is no denying that the rapid increase in interest rates, with more likely in the work before inflation reaches a targeted rate of 2%, has significantly affected it. At an annual rate of 2.6%, this was the slowest pace of growth since the state started recovering jobs post-COVID. Its going to be tough for home builders, Wood said. Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. 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. While Utah is below the national average in many areas, home prices have managed to remain strong. However, as the Federal Reserve Bank started using its economic power to fight back against inflation, which has reached a forty-year high, by increasing interest rates, the Utah housing market is beginning to show signs of a significant slowing down. Inflation is outpacing most salaries, decreasing the value of the dollar. In June 2020, the median sales price across Utah averaged $363,600 and has now jumped to $580,000. 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. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. Utah is expected to continue its rapid growth and will need to see an increase in available housing to accommodate the incoming population. Windermere Living That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. Please check your email to verify your account. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Utah has had quite a long history of rapid acceleration where house prices are concerned. Windermere Foundation 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 . Therefore, with the current small but significant price change, a seller will realize enormous overall growth and equity increase. must have viewed at least 10 homes in a three month period. Should You Invest in the Phoenix Housing Market in 2020? I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. 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%). 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. 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. Therefore, the impact of increasing interest rates has been felt more in the state than in other parts of the country. All Rights Reserved, Why two housing experts disagree on how much Utah home prices will drop in 2023, priced some two-thirds of Utahns out of affording the median priced home, Housing market is correcting but Utahs affordability crisis isnt going away. I call it the great debate, Ivory said. While that remains to be seen, whats clear is that demographic tailwinds will keep the demand for housing robust this decade. 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. Yun has said the margin of price declines will likely depend on the region. 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. Keep in mind, however, that during the pandemic housing frenzy from early 2020 to late 2022, the nations median home price ballooned by over 41%, so even if the most pessimistic predictions pan out, they arent slated to erase the historic price gains seen over the last two years. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. 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. Yes! Contact Us, Real Estate Blog Nationwide, housing pandemic hot spots in the West have been among the first to see sale prices slashed. 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. 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. increase. The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. Average income: 74197. 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. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. What is the housing market like in Cache County today? Boating in Utah can be an unmatched experience. With their buying power significantly diminished, house hunters find themselves priced out of the market or may consider postponing their home-buying plans until interest rates return to a more affordable level. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. The rental market is not affordable and is experiencing high rental prices. Yeah, thats a valid point, Wood replied, drawing laughs from the crowd. Terms . So from that affordability perspective, I think its going to keep the market from accelerating back to have a more positive price appreciation., Wood said thats a good point, but added the 70s and early 80s saw interest rates that hit as high as 18%. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Based on Redfin calculations of home data from MLS and/or public records. How is the real estate market in Utah? While Eskic said he agrees with Wood about Utahs strong job market, but were operating in a different environment because of the rates and prices.. How can I get a free valuation of a home in Utah? Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. Heres why, The Wests sharp housing market correction: Heres how fast home prices have fallen in 4 months, Home sales are crashing down to reality in the West, 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. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. The cops came, quipped Dejan Eskic, senior research fellow at the University of Utahs Kem C. 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