It will test their mettle and resolve as it will be an exercise in decision-making and patience. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. Utah Housing Market Trends Q4 2022 According to the report by Windermere Real Estate Chief Economist Matthew Gardner, the Utah real estate market has experienced a slowdown in the pace of job growth, with the state adding 43,300 jobs over the past 12 months at an annual rate of 2.6%. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. Given the Utah housing market forecast 2022, here are the top real estate markets any wise investor can add to their real estate portfolio. Site Map | FastExpert, inc. 2021. The Utah housing market is poised for economic growth, continually making it a desirable place to live, bringing with it a demand for homes, straining supply, and causing prices to remain and increase in value. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Wood, the Ivory-Boyer Senior Fellow at the University of Utahs Kem C. Gardner Policy Institute, detailed his forecast report commissioned by the Salt Lake Board of Realtors, explaining why he still feels optimistic for real estate even if 2023 wont be a year of celebration.. 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. At the very least, folks can expect some sort of moderation over the next few years but not a decline. And it looks like that trend is not going to end any time soon. 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. 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. He graduated from Spanish Fork High School. 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. 2022. Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. Utah Housing Market- Trends and Predictions for 2022, Preston Hicks Real Estate Group - JMG Utah, What does exclusive right to sell mean? So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. In addition, Utahs median listing price is 36% more than homes across the United States. 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. 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. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. After the next seven months, the median price. Homes that sold above list price likely received multiple offers. Utahs housing experts continue to shy away from the word crash, since what happened in 2022 is still nothing like what happened after the 2006 housing bubble popped. Windermere Living This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Should You Invest in the Phoenix Housing Market in 2020? But Wood is more bullish than Eskic. This would place . 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. 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. High-cost areas like San Francisco, he said, will see a 15% price decline. In the beginning, Branca said his home hunt was exciting, kind of frenzied, certainly, but still manageable. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. 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. Home sales: 3,219 26.7% less than a year ago. Love hiking, biking, or camping? Its important to keep a tab on the housing market and current trends. Find an experienced, trusted local real estate agent with FastExpert. 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. He has a background in sales and marketing and construction as a Project Superintendent. 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%. The top 5 states homebuyers searched to move to were Florida, Texas, Tennessee, Arizona, and South Carolina while California, New York, District Of Columbia, Illinois, and Massachusetts were the top 5 states homebuyers searched to move from. They also anticipate prices to grow 8.5% and sales to grow 15.2%. 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. 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. 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. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. Oakland Real Estate Market: To Invest or Not to Invest? Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. Industry experts and analysts have recently released their different takes on various US housing markets. An increasing population and a shortage of homes have increased house prices in Utah. I dont think thats happened yet.. Utah remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. 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. 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. Although predicting the future is always an exercise of caution, it is unlikely that the Utah housing market will collapse in 2023. But having price declines is really unusual, Wood said. In 2022, that was Joseph Brancas reality, along with plenty of other Utahns who wanted to join the mad dash to homeownership, but ultimately ended up walking away. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. 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. 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.. Gone are the days of brutal competition. The Utah housing market is following many of the same patterns observed nationwide. In its December 2022 monthly report, Realtor.com said its monthly housing data showed a housing market thats continuing to cool, with the number of homes for sale up by 54.7% compared to the same time last year. Property values will likely decline over the next 6 to 12 months and then flatten in the Utah housing market. You can find some of the most distinguished and reputable real estate agents using Mashvisors real estate agent directory. Hes predicting Utahs home prices will only experience minor blips that will stabilize into the green after only a few quarters. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. It has been one of if not the most competitive markets in the US in 2021. (Now) its resetting, its balancing, its coming down.. So far, Utah home prices are still up year over year, but theyve so far fallen over 9% from their peak in May, according to Eskic. Focus on the unbelievable increase you have gained over the past 10, 5, or even 2 years! Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. 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. Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. However, during the Great Recession, prices declined for years before accelerating again. Months supply of inventory: 3 - up from 1 in September 2021. 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%. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. The mortgage rates will likely continue to rise compared to what they are today. While Utah is below the national average in many areas, home prices have managed to remain strong. Contact Us, Real Estate Blog 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. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. 27.7% of homes sold above the asking price. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. It is likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. Historically, brief and prolonged price declines in Utah went hand in hand with joblessness and recessions, both of which dont seem likely in the next two to three years. Woods research colleague at the Kem C. Gardner Institute , Dejan Eskic, is more bearish, predicting Utah home prices will drop 9% year over year in 2023. whether homes are becoming more or less affordable. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. This was marginally below the rate of the prior year but impressive all the same. 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. over year. We went through a real roller coaster ride the past couple of years mainly because of the pandemic. All Rights Reserved, What will 2023 bring to the housing market? 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.. So many factors come into play. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. However, Nelson-Ogilvy sees housing prices cooling off a . The Utah housing market benefits from the states attractivity, which features a strong economy and job market. 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. Why is it taking two weeks, a month, six weeks?. There are currently 8,551 residential homes for sale in the United States.. Property prices still remain high. 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. Therefore, experts expect that Utah home prices will slow down their staggering growth and may decline in some areas. increase. 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. But what about the increase in interest rates? Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. To be included in this dataset, a Redfin.com user Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. The rental market is not affordable and is experiencing high rental prices. 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. Utah continues to be a light upon a hill to others throughout the States and even worldwide. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. Yun has said the margin of price declines will likely depend on the region. Compass announced a third round of layoffs on Thursday, according to The Real Deal. While at the beginning of the year, homebuyers could purchase a home at an interest rate of around 3%, currently borrowers are looking at more than 7%. A high or growing percentage of homes selling above list. Statewide, housing . It would slow, but it wouldnt be stopped like it is now.. According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy. Book an appointment today. Realtor.com anticipates Salt Lake City metro home-price growth will be at 8.5% and home-sales growth at 15.2% in 2022. As a result, average days on market have increased, and sellers are becoming more open to negotiation. If you ask Branca, 2022 definitely wasnt the year for buyers either. 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. The median days on the market was 70 days, up 47 year over year. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! I have moved the needle accordingly. The party was over. 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. 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. The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. 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. 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