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. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. The latest migration analysis is based on a sample of about two But Wood is more bullish than Eskic. 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. Connect with an Agent This data does not reflect actual moves. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. 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. It boasts some of the best snow on planet earth! After seven years of Salt Lake County sales averaging 18,000 homes, the high prices of 2023 will mean sales will not top 13,000, he predicted, and likely range between 11,000 to 12,000. They say it will pose challenges, especially for homebuilders, but also rebalance a market thats priced some two-thirds of Utahns out of affording the median priced home. FastExpert partner and Utah real estate agent, Preston Hicks, shares his professional perspective on the Utah housing market. Here are the latest figures, The Wests housing crunch began over a decade ago. 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. Neither Wood nor Eskic are predicting a catastrophic, 2007-like crash that sent the global economy tumbling into the Great Recession. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. 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. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. Then the rates hit and they were left holding the bag, Eskic said. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. The Utah housing market has experienced consistent growth in real estate throughout the past five years, but it started to take off in mid-2020. Home prices in Utah were down 3.0% year-over-year in January. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. With the low amount of inventory, sellers will continue to enjoy multiple offers, with some buyers willing to fork over way above market price to beat out other potential buyers. Forecast for 2022 High prices, likely interest rates increases, listing . 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. Should You Invest in the Phoenix Housing Market in 2020? Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. However, like we saw during the pandemic housing frenzy, that could all vary depending on the region. Wood and Eskic expect a staggering 40% to 50% drop in the number of new homes produced in Utah over the next two years. Inventory is on its way up, with 13,795 homes for sale in September 2022, 25,3% more than the previous year. However, Nelson-Ogilvy sees housing prices cooling off a . Utah Housing Market Forecast, What To Look For In 2022 The housing market in 2021 made the "American dream" feel more and more out of reach for a lot of people. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Homes that sold above list price likely received multiple offers. 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. 2020 further increased that number to almost 73% as median home sales prices reached $380,000. 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. Utah faces a shortage of 31,000 homes. 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. 2022. The average months of supply is 3 months, up 3 year over year. 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. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. 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. The Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! An increasing population and a shortage of homes have increased house prices in Utah. 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. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Average home value: $562,693. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. When is the best time to buy a house in Utah? The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. 27.7% of homes sold above the asking price. So Branca wasnt expecting to buy his dream home. While Utah is below the national average in many areas, home prices have managed to remain strong. The good news for buyers who are prepared to take on high mortgage rates is that they no longer face the fierce competition of early 2022. Sellers are reducing prices as homes stay on the market longer. Historically speaking, real estate only becomes more expensive over time. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. 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. Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. 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. Colorado Data Dont focus on the loss you may believe you are experiencing if you sell today. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. Privacy . Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. A year from now whoevers right has to shave their beard off.. 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. Buying read more, FastExpert, Inc is a California Licensed Broker. 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. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. It was the year that put homeownership far out of reach. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. A dear client asked me the other day Preston, why do you love Utah? It sounds clich, but I initially answered with a questionWhat isnt there to love about Utah?. A bubble is highly unlikely at this point in time because a bubble is defined as a prolonged period of actual price decline, not moderation or deceleration. The rising inventory, coupled with listing price growth dropping below 10% for the first time in a year, offers some positives for homebuyers, Realtor.com stated in its report, as they may have more options and more time to make a decision on a home purchase.. 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. Its going to be tough for home builders, Wood said. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. The latest housing data shows the median priced home in Utah's most populated county increased to $550,000 in the third quarter of 2021. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. 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. Even with todays rising mortgage rates, it will continue to be the time to buy a house in Utah. 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 lights shut off. TREC:Info About Brokerage Services,Consumer Protection Notice. Utah continues to be a light upon a hill to others throughout the States and even worldwide. No, you shouldnt wait to buy a home. Thats when buyers found their affordability ceiling. 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. The housing market in West Jordan is competitive, with the average listed property receiving five offers and selling within 27 days on the market. 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. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 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. Utah has had quite a long history of rapid acceleration where house prices are concerned. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! They also anticipate prices to grow 8.5% and sales to grow 15.2%. 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. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. The cops came and busted everyone.. 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.. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. While 2021 was the year of the shocking home price, 2022 was the year of the reset, said Steve Perry, president of the Salt Lake Board of Realtors. Utah home prices remain significantly higher than the national average. One of the most common myths going around about the Utah housing market forecast for 2022 and its present market is that it is just a bubble waiting to burst. Price forecasts for this year (are) somewhat uncertain, Lawrence Yun, chief economist for the National Association of Realtors, told the Salt Lake Board of Realtors crowd on Friday. 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. 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. Copyright 2023 Deseret News Publishing Company. Browse through the largest marketplace of Real Estate professionals, We have an in-house team that will guide you through the process. Its important to keep a tab on the housing market and current trends. You can find some of the most distinguished and reputable real estate agents using Mashvisors real estate agent directory. 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. 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. 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. We have an in-house team that will guide you through the largest marketplace Real... 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