Peak-to-trough, with the peak being May 2022 , he expects prices to decline by a percentage somewhere in the. With uncertainty in the economy, predictions for Utahs housing market vary greatly. A good indication of the markets strength and inventory is the average number of days properties stay listed. (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. 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. And it looks like that trend is not going to end any time soon. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. 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. 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. Cache County Housing Market Trends. The researchers Jim Wood and Dejan Eskic, both from the University of Utahs Kem C. Gardner Institute had a friendly debate Friday during Ivory Homes annual private gathering of hundreds of homebuilders and other industry partners from across the state. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. 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. We hope that this information may assist you with making better-informed real estate decisions. From peak-to-trough, he expects prices to decline by a percentage somewhere in the mid to low teens, depending on interest rates. Sign up now for a free 7-day trial and get 15% off on your subscription. West Valley City is assimilated to a suburb of Salt Lake City, but it is also the second most populous city in the state, with 140,230 residents. whether homes are becoming more or less affordable. To be included in this dataset, a Redfin.com user Median home price: $533,500 a 5.6% Y.o.Y. 30-year mortgage rate: 5.59000%. 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%. 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. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. The ones who are truly making money in real estate in Utah are the investors. price indicates that the housing market is competitive and bidding wars are becoming more common. 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. If rates had risen to around 4.5%, the train would still go. Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. 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. Already have a FastExpert account? But even though discounts have been swift, Utahs home prices are still slightly up year over year. Median sale price: $611,600. On average, homes in Cache County sell after 57 days on the market compared to 12 days last year. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. But, we had a recession then, Dejan, we had a recession. Yeah, thats a valid point, Wood replied, drawing laughs from the crowd. Each year, the Sal. Search and compare real estate agents near you. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. 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. Additional links: Historical Utah Data How is the real estate market in Utah? As mortgage rates are at record highs in 20 years by 7.08%. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. This trend continued through the pandemic resulting in record-high home prices and rental rate growth. 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. By Sarah Burns of The Salt Lake Local Real Estate Group, October 21, 2021 Utah State #2 in Housing Price Increases Utah's equity gains sat at 28.3% between 2020 and 2021, making Utah #2 in housing . Love hiking, biking, or camping? I dont think thats happened yet.. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. Additionally. #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. The question is, how far will that correction run and what will it mean for home prices in 2023? 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. Industry experts and analysts have recently released their different takes on various US housing markets. Year over year, prices rose in four markets but pulled back in the other three. The median price of a home in the United States is currently $518,200. Compass announced a third round of layoffs on Thursday, according to The Real Deal. He is married with 7 children. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. 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. Focus on the unbelievable increase you have gained over the past 10, 5, or even 2 years! REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. Other Regional Data. High-cost areas like San Francisco, he said, will see a 15% price decline. He graduated from Spanish Fork High School. 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. Matthew has over 30 years of professional experience both in the U.S. and U.K. That was also a time when the national economy and Utah faced a struggling job market, Wood noted. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. Utah will see minor year-over-year price declines in the first and second quarter of 2023, but prices will begin to stabilize by the third and fourth quarter, he said. 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. If 2022 was a roller coaster year for the housing market, 2023 is expected to bring a painful but necessary real estate hangover. Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. Market time rose 22 days from the third quarter of 2022. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. 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. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. Book an appointment today. 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. Although mortgage rates are expected to rise, the increase will be modest. Along with his love of family, he has a very strong competitive spirit, is passionate about personal development, and truly cares for others. 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. Average home value: $562,693. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. 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. However, despite the increased inventory in the past months, there were only three months of housing supply available in September 2022, still a long shot away from the five to six months required for a balanced market. 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. If one were to understand what the Utah housing market forecast 2022 is implying here is that renters are facing bigger challenges of acquiring their own properties. 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. However, it is also the third-most populous city in Utah, with a population of 116,961. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. Then everything changed. However, there is no denying that the rapid increase in interest rates, with more likely in the work before inflation reaches a targeted rate of 2%, has significantly affected it. . A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. 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. Shouldnt I wait for mortgage rates to decrease before I buy? Windermere Living 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. 2022. The median price of a home in the United States is currently $518,200.. 36 days on the market. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. 1 housing market in the nation for 2022. 1 housing market in the nation for 2022. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. I dont think were going to get a recession now, in Utah., Eskic, smiling, said he and Wood should make a bet on stage. Have gained over the past 10, 5, or even 2 years decisions... Real Deal median priced home as of the hottest markets in the hadnt been so aggressive in 2020 2021... 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