1 housing market in the nation for 2022. 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. Instead, he was actually looking at a mortgage payment of up to $4,200 a month, depending on the days rate. Roughly two-thirds of the population live in the Wasatch Front in the north-central part of the state, which includes the capital city, Salt Lake City. 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. Short-term correction followed by continued growth and price increases. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. The median sale price for a house in West Valley City was $436,500 in September 2022, representing a 2.9% increase in year-over-year comparisons. 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. Even a two-year period will historically yield an increase in equity in the Utah housing market. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. Homes on the market: 11,172. The surge in home prices across the country resulted in many thinking homes were sold for more than theyre worth. 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. How to Find Multi Family Homes for Sale in 2020. A year from now whoevers right has to shave their beard off.. 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. Utah Home Sales In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. Thats not good news for affordability or Utahs housing shortage, which they calculate hit 31,000 units after the big home building boom of 2021. The average sale price in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. How far will they fall? 30-year mortgage rate: 5.59000%. Forecast for 2022 High prices, likely interest rates increases, listing . Real estate investors number by the thousands in the US. Its important to keep a tab on the housing market and current trends. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. We could see this start to decrease as the inventory of houses is higher than almost any other month in 2022 (9,387 for September) and the number of days homes are sitting on the market grew from 30 in August to 39 in September according to the real estate website, Redfin. A high or growing percentage of homes selling above list. While Utah is below the national average in many areas, home prices have managed to remain strong. 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. Median sale price: $611,600. The slate of speakers all sought to help bring clarity to a market that they said has largely been fraught with volatility and uncertainty as mortgage rates, some days hovering around 7%, have squeezed buyers and have brought a rapid end to what had been over two years of a blazing hot market. In his report for Utah, Wood wrote its very unlikely that the recent price run-up represents a housing bubble, though he added, We dont know if a bubble exists until after it bursts. He cited Alan Greenspan, an economist and past chairman of the Federal Reserve, who defined a housing bubble as a prolonged period of housing price declines. Months supply of inventory: 3 - up from 1 in September 2021. 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%). They also anticipate prices to grow 8.5% and sales to grow 15.2%. Login. Park City Data Scotty Fletcher, left, and his partner Joseph Branca hang out in their living room in the apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. According to the Utah real estate market predictions from industry experts, there will be an influx of sellers in the state given the present condition of not having enough supply to meet the markets unprecedented growth. 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. 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. 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 and busted everyone.. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. This is the MOST ACCURATE UTAH Housing Market Forecast for 2022. The ongoing upward movement of median home prices is caused by buyer competition and great urgency to acquire property ahead of rising interest rates. Yun has said the margin of price declines will likely depend on the region. Buying read more, FastExpert, Inc is a California Licensed Broker. Average home value: $562,693. The past 5 years of Utahs housing market have seen an upward trend in housing prices. 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 . As a result, average days on market have increased, and sellers are becoming more open to negotiation. 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. All of this, of course, depends on how local markets fair. 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. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. Just to give you an idea, Utah Association of Realtors president Dave Robison said that in-migration is hugely impacting Utah real estate. 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. Rates rose dramatically in 2022, but I believe that they have now peaked. The states economy is still performing very well, but this is not enough to push the housing market forward at the pace we saw during the height of the pandemic. With uncertainty in the economy, predictions for Utahs housing market vary greatly. Each year, the Sal. 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. Yeah, thats a valid point, Wood replied, drawing laughs from the crowd. When we look at just how much weve peaked earlier this year, I think well start seeing negative year-over-year readings late winter, early spring, Eskic said. 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. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. We hope that this information may assist you with making better-informed real estate decisions. After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. In addition, the number of homes has increased along with significant population growth. 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. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. The 2022 for-sale home supply is expected to begin recovering from recent declines, but millennial demand will likely keep supply limited through at least 2025. Search for a realtor or service professional, Already have a FastExpert account? Dont focus on the loss you may believe you are experiencing if you sell today. Major Utah cities covered in this report: These Utah real estate reports, data, forecasts, and market trends are provided for informational use. Here are the latest figures, The Wests housing crunch began over a decade ago. They also anticipate prices to grow 8.5% and sales to grow 15.2%. It has been one of if not the most competitive markets in the US in 2021. Three of the top ten most overvalued US housing markets are in Utah. 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. Additionally. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. 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. Its falling off faster than we thought it would.. As for interest rates, Wood noted forecasts vary widely, anywhere from 5% to 9%, but he personally expects rates to bounce between 6.5% and 7.5% in 2023. Historically, even if the nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state resilient. However, this increase in inventory is not due to newly listed homes but properties staying on the market longer, as only 3,764 homes were listed in September 2022, 20% less than the year before. Its going to be tough for real estate agents. We go back to the 70s, for example, Eskic said. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. Please note that while we have included updated and accurate Airbnb data from Mashvisor, each city and county have different rules and regulations about short-term rentals. Market time rose 22 days from the third quarter of 2022. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. The median price of a home in the United States is currently $518,200.. Windermere Living Despite the expensive prices, the inventory cannot keep up with the growth pace. Like many other housing markets around the country, the Utah housing market has reached new heights during the pandemic as a result of a perfect storm of low inventory, high demand, and interest rates near historic lows. 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. 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. But now, those days of wild buyer demand and a frenzy of seller activity is over, and real estate agents outnumber active listings. The time to purchase your primary residence is today and has almost always been today. I dont think thats happened yet.. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. Yes! Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. 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. All Rights Reserved. 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. He has a natural inclination to the arts and creatives. Reluctant sellers and priced-out buyers, Wood said, will mean 2023 will mark a year of slumped home sales. 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. 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. But, we had a recession then, Dejan, we had a recession. Median home price: $533,500 a 5.6% Y.o.Y. 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. Given the Utah housing market forecast 2022, here are the top real estate markets any wise investor can add to their real estate portfolio. In June 2020, the median sales price across Utah averaged $363,600 and has now jumped to $580,000. 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. Join Us READ REDFIN'S FAIR HOUSING POLICY. Hes predicting Utahs home prices will only experience minor blips that will stabilize into the green after only a few quarters. But having price declines is really unusual, Wood 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. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. Other Regional Data. The average annual profit of property investment was: 10.098% in 2018; . 2022. 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. Windermere Foundation If 2022 was a roller coaster year for the housing market, 2023 is expected to bring a painful but necessary real estate hangover. 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. In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics. However, during the Great Recession, prices declined for years before accelerating again. Some buy-and-hold while others enter the rental market for passive income. On average, homes in Cache County sell after 57 days on the market compared to 12 days last year. Look at housing prices, they were sticky. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! 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. 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. 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. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. However, Nelson-Ogilvy sees housing prices cooling off a . The researchers Jim Wood and Dejan Eskic, both from the University of Utahs Kem C. Gardner Institute had a friendly debate Friday during Ivory Homes annual private gathering of hundreds of homebuilders and other industry partners from across the state. Utah Housing Market Forecast in 2023. Why is it taking two weeks, a month, six weeks?. I call it the great debate, Ivory said. Therefore, the Utah housing market is to be expected to slow down. It will test their mettle and resolve as it will be an exercise in decision-making and patience. The main concern is there are just not enough listed properties to go around for 500,000. Sign In. increase. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. If you dont see our email and have already checked your spam or junk folder, please give us a call at 1 (800) 319-0511. Colorado Data The median days on the market was 70 days, up 47 year over year. Realtor.com recently named the Salt Lake City region as the expected No. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. Over the past 12 months, the state added 43,300 jobs. Although demand has softened compared to last year, pushing home price growth into single-digit territory for the first time in 12 months, moderation in home price growth may encourage more buyers to return to the market in the months ahead, and may also be welcome news for sellers aiming to sell and buy at the same time., Copyright 2023 Deseret News Publishing Company. Compass announced a third round of layoffs on Thursday, according to The Real Deal. Dont wait. If one were to understand what the Utah housing market forecast 2022 is implying here is that renters are facing bigger challenges of acquiring their own properties. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Realtor.com anticipates Salt Lake City metro home-price growth will be at 8.5% and home-sales growth at 15.2% in 2022. Inventory is on its way up, with 13,795 homes for sale in September 2022, 25,3% more than the previous year. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. 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. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 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