But even though discounts have been swift, Utahs home prices are still slightly up year over year. All Rights Reserved. 2022's housing market follows Utah's hottest housing year ever . 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. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. 2.1 months of housing inventory. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median priceof $518,200. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. Matthew has over 30 years of professional experience both in the U.S. and U.K. Then the rates hit and they were left holding the bag, Eskic said. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. Homes are under construction in South Jordan on Wednesday, Dec. 21, 2022. The bull market that has been in place for quite some time appears to have lost its momentum. shattering the 43-year-old record of 20.1% set in 1978," wrote James Wood in the 2022 Housing Forecast Executive Report. Join Us Their goal is mainly to make a profit from investing in real estate but each of them has different approaches and strategies to achieve their goals. So Branca wasnt expecting to buy his dream home. Utahs economy continues to add jobs, but the pace of growth has started to slow. 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. A high or growing percentage of homes selling above list. Utah Housing Market- Trends and Predictions for 2022, Preston Hicks Real Estate Group - JMG Utah, What does exclusive right to sell mean? Thats where it gets tough. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. 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. Winter sports are a highlight in Utah. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 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. Right now, its close to 5. He's predicting Utah home prices will drop 9% year over year in 2023. Next came Sacramento, Las Vegas, Phoenix, and Tampa. 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. The music stopped. The cops came and busted everyone.. 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 its not the bubble we know, The Wests sharp housing market correction: Heres how fast home prices have fallen in 4 months, Housing market is correcting but Utahs affordability crisis isnt going away. That was also a time when the national economy and Utah faced a struggling job market, Wood noted. Over the past 12 months, the state added 43,300 jobs. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. 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. Reluctant sellers and priced-out buyers, Wood said, will mean 2023 will mark a year of slumped home sales. Months supply of inventory: 3 up from 1 in September 2021. Blame remote work, not speculative bubble, Fed study says, 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. Buying read more, FastExpert, Inc is a California Licensed Broker. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Property prices still remain high. Where do we go from here? 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. Alfred is a content writer with years of experience writing about the US housing market. This data does not reflect actual moves. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. However, it is also the third-most populous city in Utah, with a population of 116,961. 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. But by the end of the year, well stabilize and well be flat, Wood said. Utah may be the 13th-largest state in the country by area, but it is also the 11th-least densely populated. 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. It boasts some of the best snow on planet earth! 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. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. Yes! increase. 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. If you ask Perry, they have a silver lining. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. In addition, the number of homes has increased along with significant population growth. He is married with 7 children. Historically, even if the nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state resilient. 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. Heres why, Buying a house? 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. They also anticipate prices to grow 8.5% and sales to grow 15.2%. Are there enough homes for sale to meet buyer demand? 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.. Look at housing prices, they were sticky. Real estate investors number by the thousands in the US. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. 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. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. Based on Redfin calculations of home data from MLS and/or public records. After a peak of the housing market in May 2022, when the Utah median home price reached a record $577,500, Utah house prices have slowly been decreasing, although they remain higher than they were the year prior. 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. 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. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. Salt Lake City, Utah Just like Utah peaches Forecast home price change by May 2022: 23.5% Local professional: Dave Robison, broker and owner of goBE Realty, and former president of Utah Association of Realtors and Salt Lake Board of Realtors What makes the Salt Lake City market poised for growth? The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. It isnt easy to quantify the benefits of delaying purchasing your primary residence. 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. Just remember, pricing has never been more critical than right now. Inflation is outpacing most salaries, decreasing the value of the dollar. 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. And to Branca, that meant home ownership became completely inaccessible.. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. I have moved the needle accordingly. But, we had a recession then, Dejan, we had a recession. The average months of supply is 3 months, up 3 year over year. Why is it taking two weeks, a month, six weeks?. 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. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. 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? He graduated from Spanish Fork High School. 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. 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. Joining Good Morning Utah to share what to expect for Utah's housing market for 2022 is Ryan Kirkham with Summit Sotheby's and Utah realestate.com. Some investors flip houses, others wholesale them. Here are the latest figures, The Wests housing crunch began over a decade ago. 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. 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. 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. Although predicting the future is always an exercise of caution, it is unlikely that the Utah housing market will collapse in 2023. Median List Price $524,900 $285/sqft Based on all homes listed in January 2023. While neither Wood nor Eskic are predicting a catastrophic, 2007-like crash, they do expect 2023 to be a challenging year, especially for homebuilders that leaned hard into speculative building in 2021. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. In 2021, buyers were getting raked over the coals, having to give a years supply of pizza with their offer. Thats not hyperbole, he said. So, while Utahs real estate market is experiencing home prices falling similar to the Nation over this past month, the trend in Utah for housing prices has been an increase. There are currently 8,551 residential homes for sale in the United States. By April, mortgage rates had begun shooting up. 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. With nearly 2,000 miles of shoreline, Lake Powell possesses endless outdoor adventures. Boating in Utah can be an unmatched experience. We always have deceleration in the rate of increases as the cycle plays itself out. price indicates that the housing market is competitive and bidding wars are becoming more common. 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. Agents receive this question at least 10 to 15 times per week. 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. 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. The median price of a home in the United States is currently $518,200. Half a million people from one state alone. Utah home prices remain significantly higher than the national average. Well, perhaps I cantAlthough based on facts, I believe I can. The median price of a home in the United States is currently $518,200. 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. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. It would slow, but it wouldnt be stopped like it is now.. Its going to be tough for real estate agents. If you find it useful, please properly attribute this resource with a link. Utah Housing Market Forecast in 2023. 36 days on the market. The housing market in West Jordan is competitive, with the average listed property receiving five offers and selling within 27 days on the market. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. To Eskic, 2022 was the year of the Fed. In his mind, it was a federal miscalculation to raise borrowing rates so high and so fast after two runaway years. High-cost areas like San Francisco, he said, will see a 15% price decline. 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. 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. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. So many factors come into play. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. 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. Over 2022, the Federal Reserve has been battling sky-rocking inflation with their number one weapon, interest rates. 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.. Sellers are reducing prices as homes stay on the market longer. Single Family Rentals Facing Challenges in 2023, January 2023 Mortgage Rates: What to Expect, Existing Home Sales Fall in November 2022. It has been one of if not the most competitive markets in the US in 2021. The National Association of Realtors, however, is predicting 2023 will be a year the market will regain normalcy, expecting mortgage rates to stabilize, home sales to sag and prices to moderate. Like many other housing markets in the United States, the Utah housing market follows seasonal 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. In the beginning, Branca said his home hunt was exciting, kind of frenzied, certainly, but still manageable. Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. Its falling off faster than we thought it would.. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. 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. How can I get a free valuation of a home in Utah? Thats a good thing, because they were overpriced anyway, right? Perry said. I dont think were going to get a recession now, in Utah., Eskic, smiling, said he and Wood should make a bet on stage. Nationally, a growing number of experts and firms are predicting U.S. home prices will fall, some expecting slight, single-digit drops, while others expect prices to fall by double digits, perhaps even over 20%. The Utah housing market became one of the most competitive in the country, especially in areas like Salt Lake City and St. George. 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. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. The governor said his proposed budget should translate to about 1,100 new low-income units across the state. READ REDFIN'S, Do not sell or share my personal information. While overvalued does not necessarily mean that a housing market will crash, these markets are at a higher risk of a sharper correction when economic conditions change. 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. In addition, inflation and the looming specter of a recession are also taking a toll on Utah residents buying power. 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. Property values will likely decline over the next 6 to 12 months and then flatten in the Utah housing market. 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