28.7% of homes sold above the asking price, reaching a median sale price of $525,000, which represents a 7.8% increase in the past year. increase. Neither Wood nor Eskic are predicting a catastrophic, 2007-like crash that sent the global economy tumbling into the Great Recession. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. 2022's housing market follows Utah's hottest housing year ever . Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. The median price of a home in the United States is currently $518,200. An increasing population and a shortage of homes have increased house prices in Utah. 2023 will be tough for sales. Additionally. Utah continues to be a light upon a hill to others throughout the States and even worldwide. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. This would place . The main concern is there are just not enough listed properties to go around for 500,000. How far will they fall? , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. It will test their mettle and resolve as it will be an exercise in decision-making and patience. With nearly 2,000 miles of shoreline, Lake Powell possesses endless outdoor adventures. From peak-to-trough, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on interest rates. Powell, the Feds chairman, has indeed called it a pandemic frenzy housing bubble, but he and other experts all have consistently said its not like 2007 and 2008. 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. 10 Best Neighborhoods in the Nashville Real Estate Market 2019. Housing market predictions for 2023 vary, depending on the regional market and who you talk to, but no one is predicting a stellar year for buyers or sellers and certainly not for homebuilders. We hope that this information may assist you with making better-informed real estate decisions. 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. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. There are currently 8,551 residential homes for sale in the United States. whether homes are becoming more or less affordable. 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. 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. Since Utah house prices are higher than the national average, it should come as no surprise that the demand has gone down noticeably since July 2022. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. Renters have seen a steady, heady increase in rents over the past year, making their window for buying even more narrow. 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. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. must have viewed at least 10 homes in a three month period. They didnt go down.. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. They climbed up so high so fast. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. Some buy-and-hold while others enter the rental market for passive income. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. 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 remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. 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. So unless we have a real serious recession, I think prices have some support given our economy.. He noted in the early 1980s there were a few (quarterly) periods where prices actually declined before hitting a positive trajectory soon after. And it looks like that trend is not going to end any time soon. 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. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. They. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year. With uncertainty in the economy, predictions for Utahs housing market vary greatly. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. Homes sold fastest in Salt Lake County and slowest in Summit County. 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. Terms . Heres why, Buying a house? We always have deceleration in the rate of increases as the cycle plays itself out. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. Half a million people from one state alone. 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 likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. At the very least, folks can expect some sort of moderation over the next few years but not a decline. Winter sports are a highlight in Utah. If you divided your housing price by your annual income, it was 2.6. CA License #01950016. Next came Sacramento, Las Vegas, Phoenix, and Tampa. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. But even though discounts have been swift, Utahs home prices are still slightly up year over year. Scotty Fletcher, left, and his partner Joseph Branca pose for a photo in their apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. Months supply of inventory: 3 up from 1 in September 2021. Utah faces a shortage of 31,000 homes. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. The surge in home prices across the country resulted in many thinking homes were sold for more than theyre worth. READ REDFIN'S FAIR HOUSING POLICY. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. 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. According to September 2022 data, some of the key market stats for the Utah housing market appear as follows: As in many other places across the country, Utah home prices have increased faster than usual in the aftermath of the COVID-19 outbreak. Imagine earning over $100,000 a year and being qualified to buy a half-million-dollar home but still not being able to swing it. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. The Utah housing market is following many of the same patterns observed nationwide. 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. 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 areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. Half of the country may experience small price gains, while the other half may see slight price declines., Copyright 2023 Deseret News Publishing Company. Despite the expensive prices, the inventory cannot keep up with the growth pace. 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. 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. So I hope the industry is close to right-sized and things can get better from here, Kelman said. 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. 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 lights shut off. Statewide, housing . That was also a time when the national economy and Utah faced a struggling job market, Wood noted. Over 2022, the Federal Reserve has been battling sky-rocking inflation with their number one weapon, interest rates. Where do we go from here? Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. He has a background in sales and marketing and construction as a Project Superintendent. This was marginally below the rate of the prior year but impressive all the same. 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. 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 music stopped. He has taken his life experiences working with people and transitioned into helping families and individuals make the very best decisions when it comes to real estate. So hire an experienced top-producing agent to help you price, market, and negotiate the best deal possible. 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. As for interest rates, Wood noted forecasts vary widely, anywhere from 5% to 9%, but he personally expects rates to bounce between 6.5% and 7.5% in 2023. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. 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. Please check your email to verify your account. 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. Thats the story of 2022. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. 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. It took an average of 55 days to sell a home during the fourth quarter. Already have a FastExpert account? Buyers finally have market power. 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. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. The average rate for 2022, based on the forecasts of seven organization . So many factors come into play. 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. To be included in this dataset, a Redfin.com user Here are Utahs metropolitan areas with the hottest housing markets for volume. 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. NerdWallet reports that 2022 will see a low end of 3,4% according to Fannie Mae and will reach 4% by the end of the year as predicted by the Mortgage Bankers Association. Some investors flip houses, others wholesale them. 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. But its not the bubble we know, The Wests sharp housing market correction: Heres how fast home prices have fallen in 4 months, Housing market is correcting but Utahs affordability crisis isnt going away. The average sale price in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. But Wood is more bullish than Eskic. 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. By comparison, interest rates 20 years ago averaged between 6%-7%, and 1981 experienced interest rates of 16%. Preston was born in Provo, Utah, and raised in Spanish Fork, Utah. Additional links: Historical Utah Data If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. The number of days on the market had also increased sharply at 39 median D.o.M., compared to 15 the previous year, further indicating that the days when properties were being snatched off the market as soon as they were listed are long gone. 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. How can I get a free valuation of a home in Utah? 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. Yun has said the margin of price declines will likely depend on the region. All Rights Reserved, Why two housing experts disagree on how much Utah home prices will drop in 2023, priced some two-thirds of Utahns out of affording the median priced home, Housing market is correcting but Utahs affordability crisis isnt going away. 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. Rates rose dramatically in 2022, but I believe that they have now peaked. 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? 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. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. If you ask Branca, 2022 definitely wasnt the year for buyers either. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. The cops came, quipped Dejan Eskic, senior research fellow at the University of Utahs Kem C. Gardner Policy Institute, one of Utahs leading housing experts. Connect with an Agent According to data collected in September 2022, the latest available at the time of writing, the median sale price for a house in Utah stood at $533,500, representing a 5.6% increase compared to September 2021. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. Both bearded men chuckled, along with laughs and applause from the audience. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. I just felt totally iced out, Branca said. 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. As a result, average days on market have increased, and sellers are becoming more open to negotiation. In addition, the number of homes has increased along with significant population growth. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. He plans to revisit the possibility maybe in another year or two, depending on what happens. 2022. While Utah is below the national average in many areas, home prices have managed to remain strong. Below is the latest Utah housing market trends analysis. 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. There was a 98.0% sale-to-list price, down 2.7 points year over year. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. Yes! Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. The Midwest, he said, will likely see minimal price increases.. #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. 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. 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. 27.7% of homes sold above the asking price. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. 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. But, we had a recession then, Dejan, we had a recession. Utah Housing Market- Trends and Predictions for 2022, Preston Hicks Real Estate Group - JMG Utah, What does exclusive right to sell mean? After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. While the market in Utah is feeling a correction similar to the rest of the Nation, it weathered the 2008 recession relatively well and is expected to maintain a strong housing market. Historically, even if the nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state resilient. Its going to be tough for home builders, Wood said. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. 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