Half of the country may experience small price gains, while the other half may see slight price declines., Copyright 2023 Deseret News Publishing Company. Search for a realtor or service professional, Already have a FastExpert account? 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. over year. The governor said his proposed budget should translate to about 1,100 new low-income units across the state. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. Therefore, experts expect that Utah home prices will slow down their staggering growth and may decline in some areas. After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. Should You Invest in the Phoenix Housing Market in 2020? But now, those days of wild buyer demand and a frenzy of seller activity is over, and real estate agents outnumber active listings. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. 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. Families flourish in Utah. Three of the top ten most overvalued US housing markets are in Utah. (Now) its resetting, its balancing, its coming down.. 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. Therefore, the Utah housing market is to be expected to slow down. 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. Even with the recent slowdown, a correctly priced home will sell, and it will sell with record equity growth over the last 10-year average. Its falling off faster than we thought it would.. 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. 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. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. Eskic has a more bearish outlook. For renters, these relentless price increases mean the path to ownership has narrowed even further. All Rights Reserved, What will 2023 bring to the housing market? When they were 30 in 1994, they purchased their second home for around $120,000 on a combined income of around $85,000, Branca said. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. Theres going to be a terrible consolidation, he said, though he added he believes ultimately itll be good for the industry., In 2020 and 2021, when Congress was writing COVID-19 stimulus checks, Kelman said real estate diversified in an interesting way because those stimulus checks allowed people to experiment with real estate.. price indicates that the housing market is competitive and bidding wars are becoming more common. 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. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. 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. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 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. 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. Winter sports are a highlight in Utah. While Utah is below the national average in many areas, home prices have managed to remain strong. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. 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. Now, we still have a very strong job market, and we expect the growth rate is going to come down a little bit in 2023 in jobs, but I still think its going to be a strong market, Wood said. If they hadnt been so aggressive in 2020 and 2021, wed be talking about unemployment now rather than inflation. He also noted it was really Congress that juiced the economy with so much one-time stimulus money, not the Fed. 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. If you find it useful, please properly attribute this resource with a link. 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. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. 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%. This trend continued through the pandemic resulting in record-high home prices and rental rate growth. With the rise of interest rates, a significant economic shift is occurring and we will likely see Utah home sales temper buyer demand. , Homes that sold above list price likely received multiple offers. He noted in the early 1980s there were a few (quarterly) periods where prices actually declined before hitting a positive trajectory soon after. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. Then the rates hit and they were left holding the bag, Eskic said. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. 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. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. After the next seven months, the median price. At the very least, folks can expect some sort of moderation over the next few years but not a decline. We went through a real roller coaster ride the past couple of years mainly because of the pandemic. Park City Data We also observe a lengthening of the time spent on the market and a decrease in both new listings and sales, which points towards a general slowing down of the Utah housing market. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. The median price of a home in the United States is currently $518,200. Utah faces a shortage of 31,000 homes. Historical Utah real estate data and trends are included below the latest update. However, this increase in inventory is not due to newly listed homes but properties staying on the market longer, as only 3,764 homes were listed in September 2022, 20% less than the year before. Search and compare real estate agents near you. 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. The average rate for 2022, based on the forecasts of seven organization . Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Therefore, with the current small but significant price change, a seller will realize enormous overall growth and equity increase. I dont think thats happened yet.. 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. CA License #01950016. 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. He has a background in sales and marketing and construction as a Project Superintendent. We hope that this information may assist you with making better-informed real estate decisions. 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. Sign In. 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%. With nearly 2,000 miles of shoreline, Lake Powell possesses endless outdoor adventures. Year over year, prices rose in four markets but pulled back in the other three. Copyright 2023 Deseret News Publishing Company. 36 days on the market. Realtor.com recently named the Salt Lake City region as the expected No. 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. When is the best time to buy a house in Utah? Heres why, 2021: The year of the shocking home price, Utah made a dent on its housing shortage in 2021 but is still 31,000 units short, Buying a house? 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. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. increase. In the beginning, Branca said his home hunt was exciting, kind of frenzied, certainly, but still manageable. 27.7% of homes sold above the asking price. All Rights Reserved. Utah Housing Market at a Glance September 2022 Even this far into 2022 with the mortgage rate hikes, Utah remains one of the hottest markets. In many respects it will be an uphill journey given. 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. Home price hit $ 650,000 to bidding wars and a shortage of active.... Keeping up with the rise of interest rates, and local salaries are keeping... Not keeping up with the current small but significant price change, a seller will realize enormous overall growth equity! Low-Income units across the state rose in four markets but pulled back in the United States currently. 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