Thats when buyers found their affordability ceiling. Even with todays rising mortgage rates, it will continue to be the time to buy a house in Utah. 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. shattering the 43-year-old record of 20.1% set in 1978," wrote James Wood in the 2022 Housing Forecast Executive Report. And it looks like that trend is not going to end any time soon. Yun has said the margin of price declines will likely depend on the region. 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. 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. Cache County Housing Market Trends. The latest migration analysis is based on a sample of about two Are there enough homes for sale to meet buyer demand? Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. A year from now whoevers right has to shave their beard off.. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. 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. FastExpert partner and Utah real estate agent, Preston Hicks, shares his professional perspective on the Utah housing market. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. 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. The West was ground zero for the pandemic housing frenzy and has also been one of the first areas to see home listing prices getting slashed as the market corrects. So unless we have a real serious recession, I think prices have some support given our economy., Wood also said even if home prices dropped 10%, they wouldnt set off a wave of foreclosures, unlike what happened in 2008, which just pulled prices down. Already have a FastExpert account? Check! 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%. But, we had a recession then, Dejan, we had a recession. 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. So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! The bull market that has been in place for quite some time appears to have lost its momentum. The party was over. It is likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. 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. Some buy-and-hold while others enter the rental market for passive income. 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. Median home price: $533,500 a 5.6% Y.o.Y. Nationally, a growing number of experts and firms are predicting U.S. home prices will fall, some expecting slight, single-digit drops, while others expect prices to fall by double digits, perhaps even over 20%. Since the pandemic began, housing prices in the Beehive State have skyrocketed to the point that more than 50% of households can no longer afford to buy median-priced properties in the state. 27.7% of homes sold above the asking price. 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. It seemed like the housing market was running away from buyers, who struggled to get offers accepted due to shockingly low inventory levels. 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. Realtor.com isn't the only group offering a strong forecast for the Salt Lake City real estate scene in 2022. Hes predicting Utah home prices will drop 9% year over year in 2023. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. The average annual profit of property investment was: 10.098% in 2018; . Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. 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. The median price of a home in the United States is currently $518,200. Utah rallied relatively quickly back to a strong economy compared to the other 49 states. Its more likely that as mortgage rates continue to decline, the market will find a solid floor in the summer and prices will resume their upward trend as we move into the fall. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. How the pandemic housing frenzy which drove housing prices up to unimaginable levels in 2021 and into early 2022, especially in Western states like Idaho and Utah came to a grinding halt mid year, and the market crashed down to reality. 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. (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. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. 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. It is equally impressive to see that the unemployment rate remained at a very low level even as the state added over 52,400 people to the workforce. But housing costs werent nearly as high back then, Eskic interjected. The average months of supply is 3 months, up 3 year over year. 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%. It isnt easy to quantify the benefits of delaying purchasing your primary residence. Therefore, the Utah housing market is to be expected to slow down. Meanwhile, new home construction. With uncertainty in the economy, predictions for Utahs housing market vary greatly. Forecast for 2022 High prices, likely interest rates increases, listing . Sellers are reducing prices as homes stay on the market longer. Home prices in Utah were down 3.0% year-over-year in January. Median List Price $524,900 $285/sqft Based on all homes listed in January 2023. Its important to keep a tab on the housing market and current trends. So Branca said he made the decision to back out of the market, hoping to maybe consider buying again when interest rates and potentially prices come down. 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. 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. 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. Industry experts and analysts have recently released their different takes on various US housing markets. Find an experienced, trusted local real estate agent with FastExpert. It will test their mettle and resolve as it will be an exercise in decision-making and patience. Agents receive this question at least 10 to 15 times per week. On average, homes in Cache County sell after 57 days on the market compared to 12 days last year. must have viewed at least 10 homes in a three month period. 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. Please check your email to verify your account. Utah Housing Market Overview What is the housing market like right now? Year over year, prices rose in four markets but pulled back in the other three. The time to purchase your primary residence is today and has almost always been today. Other Regional Data. If you divided your housing price by your annual income, it was 2.6. Predictions include price drops, terrible consolidation, but better buyer balance, 2022 was a roller coaster year for the housing market, growing number of experts and firms are predicting U.S. home prices will fall, nations median home price ballooned by over 41%, The great reset of 2022: The year the Fed had no mercy on the housing market, U.S. navigating pandemic housing bubble, Fed chairman says. 2023 will be tough for sales. However, they expect the market to enter a correction that will persist into 2023 thanks to the Federal Reserves aggressive rate hikes to combat inflation. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. Hes employed as a professional actor and director of marketing and advertising at Hale Center Theater Orem, as well as director of communications at the Salt Lake Acting Company. 2022 housing market forecast In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high. 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 Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median priceof $518,200. The number of newly listed homes was 1,954 and up 1.4% year over year. The average months of supply is 3 months, up 3 year over year. In addition, people are moving to Utah because of the family-friendly environment, high-ranking school systems, and endless outdoor activities available along with the National parks. We hope that this information may assist you with making better-informed real estate decisions. The median price of a home in the United States is currently $518,200.. The median days on the market was 70 days, up 47 year over year. Utah Home Sales In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. 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. 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%. There was a 98.0% sale-to-list price, down 2.7 points year over year. 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. All of this, of course, depends on how local markets fair. Real estate investors number by the thousands in the US. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. The Utah housing market became one of the most competitive in the country, especially in areas like Salt Lake City and St. George. Its going to be tough for home builders, Wood said. It would slow, but it wouldnt be stopped like it is now.. Below is the latest Utah housing market trends analysis. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 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. Where do we go from here? How can I get a free valuation of a home in Utah? After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. This would place . While this may be good news for home buyers, rates will still be higher than they have become accustomed to. The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. He graduated from Spanish Fork High School. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Utah has had quite a long history of rapid acceleration where house prices are concerned. 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. 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. Half a million people from one state alone. Despite the expensive prices, the inventory cannot keep up with the growth pace. The demand is causing local buyers to cut corners by foregoing home inspections and appraisal contingencies just to beat the competition. Compass announced a third round of layoffs on Thursday, according to The Real Deal. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. 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. Both bearded men chuckled, along with laughs and applause from the audience. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. TREC:Info About Brokerage Services,Consumer Protection Notice. Then everything changed. Wood and Eskic expect a staggering 40% to 50% drop in the number of new homes produced in Utah over the next two years. 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. The Typical U.S. Home Changes Hands Every 12 Years, Down From 2020 Peak, Market Recovery Hampered by High Housing Costs, Low Supply in January, Housing Market Update: Sale Prices Flatten, Demand for Mortgages Falls as Rates Climb, Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade, Redfin Predicts a More Balanced Housing Market in 2022, Housing-Market Mayhem: U.S. Home Sales Likely to Hit Record High of $2.5 Trillion In 2021, REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. But even though discounts have been swift, Utahs home prices are still slightly up year over year. Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. Heres why, Buying a house? 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? Boating in Utah can be an unmatched experience. We dont have that.. Hang in there. A good indication of the markets strength and inventory is the average number of days properties stay listed. Reluctant sellers and priced-out buyers, Wood said, will mean 2023 will mark a year of slumped home sales. Windermere Foundation So, while Utahs real estate market is experiencing home prices falling similar to the Nation over this past month, the trend in Utah for housing prices has been an increase. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Love hunting, fishing, or anything outdoors? 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. 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. If you are investing in real estate properties to rent out as vacation homes, find out the short-term rental laws in the city and county youre considering. If you ask Perry, they have a silver lining. price indicates that the housing market is competitive and bidding wars are becoming more common. They also anticipate prices to grow 8.5% and sales to grow 15.2%. This dataset excludes all rentals data. Thank you for registering with FastExpert. When he first started looking in November 2021 and into early 2022, Salt Lake Countys median single-family home price had hit $580,000, up 24% from a year earlier, according to the Salt Lake Board of Realtors. Search and compare real estate agents near you. Is the Utah housing market going to crash in 2023? Inventory is on its way up, with 13,795 homes for sale in September 2022, 25,3% more than the previous year. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. All rights reserved. As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. 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?. 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