Thats when buyers found their affordability ceiling. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! 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?. Buyers finally have market power. Love hunting, fishing, or anything outdoors? 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 Utah housing market benefits from the states attractivity, which features a strong economy and job market. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Utah has had quite a long history of rapid acceleration where house prices are concerned. Browse through the largest marketplace of Real Estate professionals, We have an in-house team that will guide you through the process. 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. Wood interjected, saying hes got to defend the Fed. 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 median price of a home in the United States is currently $518,200. As of November, that figure was down to $569,000 14% lower than the May peak but still 4% higher than in November of 2021. 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. 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 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. Market time rose 22 days from the third quarter of 2022. About Us How is the real estate market in Utah? 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. Thats a good thing, because they were overpriced anyway, right? Perry said. And due to Utah being a robust economic powerhouse, this state will be poised for the quickest and most powerful market shift back to an unbalanced sellers market. Utah continues to be a light upon a hill to others throughout the States and even worldwide. While Utah is below the national average in many areas, home prices have managed to remain strong. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Login. 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? In Utah, because of its continued strong job economy, experts predict the states housing market to experience some turbulence in 2023 but come out strong next year. We went through a real roller coaster ride the past couple of years mainly because of the pandemic. I like the word contraction better than collapse, said Jim Wood, director of research and science and the Ivory-Boyer senior fellow at the Kem C. Gardner Institute. 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. The median price of a home in the United States is currently $518,200. If you divided your housing price by your annual income, it was 2.6. 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. Utahs economy continues to add jobs, but the pace of growth has started to slow. Utah faces a shortage of 31,000 homes. Still seemed achievable. The pandemic housing frenzy was still very much alive fueled by low, 3% interest rates, short housing supply, and fear of missing out driving both sellers and buyers to the market. Just remember, pricing has never been more critical than right now. Home sales: 3,219 - 26.7% less than a year ago. Site Map | FastExpert, inc. 2021. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. If you find it useful, please properly attribute this resource with a link. This trend continued through the pandemic resulting in record-high home prices and rental rate growth. Hes predicting Utahs home prices will only experience minor blips that will stabilize into the green after only a few quarters. It would slow, but it wouldnt be stopped like it is now.. It seemed like the housing market was running away from buyers, who struggled to get offers accepted due to shockingly low inventory levels. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! of $518,200. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. In many respects it will be an uphill journey given. Heres why, Why are house prices so high? Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. Wallethub found Utah is the. In early 2022, momentum was slowing from 2021, but then the faucet just got turned off., 2021 was on fire, and in 2022 its an empty concert hall, he said. Utah is expected to continue its rapid growth and will need to see an increase in available housing to accommodate the incoming population. 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. Shouldnt I wait for mortgage rates to decrease before I buy? Utah Housing Market Overview What is the housing market like right now? Median sale price: $611,600. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. Hed hoped for a modest single family home, a starter home to share with his partner, to at least get their foot in the door of home ownership and out of the one bedroom, one bathroom apartment theyre currently renting in Salt Lake City. As mortgage rates are at record highs in 20 years by 7.08%. Branca said hes grateful that hes employed, has a handsome income, and while hes sad that the market was so difficult to navigate for his situation, it felt much worse to realize just how many other Utahns the market has priced out. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! That was also a time when the national economy and Utah faced a struggling job market, Wood noted. Buying read more, FastExpert, Inc is a California Licensed Broker. The counties covered by this report added more than 35,000 new jobs over the past year, which was also a growth rate of 2.6%. Colorado Data Heres what volatile mortgage rates are doing to your purchasing power, Utah housing prices down from spring peak but theyre still higher than last year. He is married with 7 children. 2.1 months of housing inventory. However, like we saw during the pandemic housing frenzy, that could all vary depending on the region. A year from now whoevers right has to shave their beard off.. The past 5 years of Utahs housing market have seen an upward trend in housing prices. Prices, though theyre on a downward trajectory, are still up year over year by single-digit percentages at least for now. 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. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Property prices still remain high. With the rise of interest rates, a significant economic shift is occurring and we will likely see Utah home sales temper buyer demand. Price growth rates, especially in 2021, were nothing short of astounding. Thats where it gets tough. 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. Some buy-and-hold while others enter the rental market for passive income. After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. 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. Sign In. 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. If 2022 was a roller coaster year for the housing market, 2023 is expected to bring a painful but necessary real estate hangover. increase. Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. Salt Lake Housing Market Forecast with Real Estate Prices for 2032: August 2032: Open: 666286: Min: 635950: The client gave a slightly crooked smile to suggest that I am not only biased but also a Realtor who makes a living by selling properties in Utah. 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. The music stopped. 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. But, we had a recession then, Dejan, we had a recession. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year. 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? must have viewed at least 10 homes in a three month period. 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. 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%. 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 Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 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. Looking ahead to 2023 and what it will bring to the housing market, two of Utahs leading housing experts are respectfully disagreeing with each other. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. 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. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. Home sales: 3,219 26.7% less than a year ago. The average months of supply is 3 months, up 3 year over year. The number of newly listed homes was 1,954 and up 1.4% year over year. However, during the Great Recession, prices declined for years before accelerating again. So I hope the industry is close to right-sized and things can get better from here, Kelman said. How far will they fall? In December 2022, Cache County home prices were up 2.1% compared to last year, selling for a median price of $444K. 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. 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. 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. 1 housing market in the nation for 2022. . Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. 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. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. There are currently 8,551 residential homes for sale in the United States. Join Us 30-year mortgage rate: 5.59000%. 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. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. 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. (Now) its resetting, its balancing, its coming down.. If youre looking to buy or sell real estate in Utah, you want to ensure youre working with a real estate agent who can help you navigate the rapidly changing conditions of the local housing markets. Where do we go from here? 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. This data does not reflect actual moves. Heres why, Buying a house? 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. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. He graduated from Spanish Fork High School. However, Nelson-Ogilvy sees housing prices cooling off a . Prices were 3.7% lower than in the third quarter of 2022. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. (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. Home prices in Utah were down 3.0% year-over-year in January. Half of the country may experience small price gains, while the other half may see slight price declines., Copyright 2023 Deseret News Publishing Company. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. 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. There was a 98.0% sale-to-list price, down 2.7 points year over year. 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. 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. First-time homebuyers will need to be successful in the 2022 housing market if we are going to see the homeownership rate begin to climb again. If inflation continues to fall, as I expect it will, rates will continue to drop. 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. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. 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. 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. 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. 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. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. 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. 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%. Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. Connect with an Agent 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. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. Utah Housing Market- Trends and Predictions for 2022, Preston Hicks Real Estate Group - JMG Utah, What does exclusive right to sell mean? Three of the top ten most overvalued US housing markets are in Utah. 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. Increase in available housing to accommodate the incoming population that will guide through. Were down 3.0 % year-over-year in January 2023, home prices in?. Rise over $ 600,000 in the next 12 to 18 months, up 81.9 % year year... Low unemployment rates, job growth, and affordable housing should expert forecasts be correct the! I hope the industry is close to right-sized and things can get better from here, Kelman said having reading! Then, Dejan, we had a recession interest rates, low taxes, and pandemic made., Wood wrote continued through the largest marketplace of Real Estate hangover Utah... 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