Statewide, housing . 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. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. The median price of a home in the United States is currently $518,200.. It boasts some of the best snow on planet earth! One of the many reasons, and perhaps one of the most important reasons folks are moving to Utah, is because this great state boasts one of the strongest economies and job markets in the Nation. Average income: 74197. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. Windermere Living 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.. The Midwest, he said, will likely see minimal price increases.. If inflation continues to fall, as I expect it will, rates will continue to drop. So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. 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. As mortgage rates are at record highs in 20 years by 7.08%. Branca said hes struck by how wild todays home buying reality is. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Forecast for 2022 High prices, likely interest rates increases, listing . The past 5 years of Utahs housing market have seen an upward trend in housing prices. However, prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels, noted Daniel Hale, Realtor.coms chief economist. Copyright 2023 Deseret News Publishing Company. Here are Utahs metropolitan areas with the hottest housing markets for volume. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. 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%. (Now) its resetting, its balancing, its coming down.. increase. Therefore, although Utah home prices may decline in the coming months, the Utah housing market should remain relatively strong and correct itself for more sustainable growth. 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. It completely snowballed out of control., That $4,200 monthly payment would have been for a home on the very upper end of his budget, Branca said, and never one that I was actually considering, but certainly one that I should have been able to consider. 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. With nearly 2,000 miles of shoreline, Lake Powell possesses endless outdoor adventures. Yes! 2023 will be tough for sales. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. Join Us The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. AirDNA vs. Mashvisor: Which One Is the Better Source of Airbnb Data? Heres why, Buying a house? The Utah housing market is amid a major shift. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. The migration during the Pandemic contributed to the increased demand in the Utah housing market and an increase in housing prices. They also anticipate prices to grow 8.5% and sales to grow 15.2%. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. It seemed like the housing market was running away from buyers, who struggled to get offers accepted due to shockingly low inventory levels. 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. Overall, Yun has predicted U.S. home sales to fall by 6.8% in 2023 compared to 2022, and he expects home prices to increase only 0.3%, or essentially flatline. Doing read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Here are some of the Utah real estate market trends 2022 will bring our way: Over the past several years, Americans have been treated to near spoiled, actually by very low-interest rates. The median days on the market was 70 days, up 47 year over year., The direction and pace at which home prices are changing are indicators of the strength of the housing market andwhether homes are becoming more or less affordable. Here are their year-over-year predictions for the Salt Lake City housing market in 2022: Forecasted home sales change: +15.2%. The number of newly listed homes was 1,954 and up 1.4% year over year. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. In December 2022, Cache County home prices were up 2.1% compared to last year, selling for a median price of $444K. 10 Best Neighborhoods in the Nashville Real Estate Market 2019. Property prices still remain high. Eskic has a more bearish outlook. 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. Contact Us, Real Estate Blog Wasatch County makes its way to our Utah housing market forecast for 2022 because it has attracted big-city folks from San Francisco and New York for relocation. Yeah, thats a valid point, Wood replied, drawing laughs from the crowd. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. must have viewed at least 10 homes in a three month period. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median priceof $518,200. Buyers were actually offering pizza, cookies, even Utah Jazz tickets to literally sweeten the deal, all kinds of crazy stuff that real estate agents had to make sure to handle correctly. Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. With their buying power significantly diminished, house hunters find themselves priced out of the market or may consider postponing their home-buying plans until interest rates return to a more affordable level. It would be a huge understatement to say that it has upended the way we do things in the real estate industry and has caused some major disruptions and setbacks in many peoples plans. #UPDATE firms predicting that U.S. home prices will continue to fall in 2023:@FannieMae@Zondahome@JBREC Zelman & Associates@KPMG@GoldmanSachs@MorganStanley@WellsFargo@MoodysAnalyticsTD Bank@CapEconomics@PantheonMacroAmherstING@RedfinYieldstreet. 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. 2022. 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. It is a valid and fundamental question as our homes are typically the largest and most expensive asset we own. Price growth rates, especially in 2021, were nothing short of astounding. 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. Wood, who has studied Utah's housing market for decades, forecasts that real estate sales will remain steady in 2022 while home prices will rise 10%-12%. Sellers are reducing prices as homes stay on the market longer. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. Just to give you an idea, Utah Association of Realtors president Dave Robison said that in-migration is hugely impacting Utah real estate. Utah has had quite a long history of rapid acceleration where house prices are concerned. Homes on the market: 11,172. Thats the story of 2022. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. Forecasted home price change: +8.5%. The ongoing upward movement of median home prices is caused by buyer competition and great urgency to acquire property ahead of rising interest rates. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. 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. Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. However, it is also the third-most populous city in Utah, with a population of 116,961. The housing market in Utah is still highly competitive since the population continues to grow, the job market remains strong, and the quality of life is high. 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. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. shattering the 43-year-old record of 20.1% set in 1978," wrote James Wood in the 2022 Housing Forecast Executive Report. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. There was a 98.0% sale-to-list price, down 2.7 points year over year. The best way to describe it, he said, is an abrupt contraction thats had a dramatic effect on all aspects of the market, but especially on homebuilding, which he and Eskic worry will exacerbate Utahs housing shortage long term. Its important to keep a tab on the housing market and current trends. From peak-to-trough, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on interest rates. Prices were 3.7% lower than in the third quarter of 2022. 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. Then the rates hit and they were left holding the bag, Eskic said. 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. Joseph Branca, left, makes a drink while his partner Scotty Fletcher makes dinner at their apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. 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. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. 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.. The average annual profit of property investment was: 10.098% in 2018; . At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. He noted in the early 1980s there were a few (quarterly) periods where prices actually declined before hitting a positive trajectory soon after. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. You can find some of the most distinguished and reputable real estate agents using Mashvisors real estate agent directory. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. The demand is causing local buyers to cut corners by foregoing home inspections and appraisal contingencies just to beat the competition. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. READ REDFIN'S, Do not sell or share my personal information. 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. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. This current environment allows experienced and knowledgeable agents to negotiate more seller concessions, which can help buy down the rate, giving the buyers a more affordable and competitive monthly payment. It has been one of if not the most competitive markets in the US in 2021. But even though discounts have been swift, Utahs home prices are still slightly up year over year. This is the MOST ACCURATE UTAH Housing Market Forecast for 2022. Although mortgage rates are expected to rise, the increase will be modest. 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. Preston was born in Provo, Utah, and raised in Spanish Fork, Utah. The home was 2,500 square feet, four bedrooms, two and a half bathrooms, sat on a quarter acre lot, and they lived well within their means on a $1,000 a month mortgage payment. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. Wood said he was a little bit more optimistic, predicting minor blips that will stabilize into the green after only a few quarters. He plans to revisit the possibility maybe in another year or two, depending on what happens. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. 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