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. 2022's housing market follows Utah's hottest housing year ever . 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 seemed like the housing market was running away from buyers, who struggled to get offers accepted due to shockingly low inventory levels. 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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. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high. Find an experienced, trusted local real estate agent with FastExpert. Additionally. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. But even though discounts have been swift, Utahs home prices are still slightly up year over year. Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! We went through a real roller coaster ride the past couple of years mainly because of the pandemic. 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. The lights shut off. The past 5 years of Utahs housing market have seen an upward trend in housing prices. The Midwest, he said, will likely see minimal price increases.. 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. Then everything changed. Property prices still remain high. So Branca wasnt expecting to buy his dream home. Will it pop or deflate?, disagree over how much home prices will decline, Why two housing experts disagree on how much Utah home prices will drop in 2023, Housing market is correcting but Utahs affordability crisis isnt going away. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. About Us They climbed up so high so fast. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Utah continues to be a light upon a hill to others throughout the States and even worldwide. 30-year mortgage rate: 5.59000%. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. The fi read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. In addition, inflation and the looming specter of a recession are also taking a toll on Utah residents buying power. 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. 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. Even before COVID swept across the world, the Utah housing market was already out of reach for 63% of renter households. I dont think thats happened yet.. This was marginally below the rate of the prior year but impressive all the same. 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. Utah Housing Market Forecast in 2023. Why is it taking two weeks, a month, six weeks?. If inflation continues to fall, as I expect it will, rates will continue to drop. (Now) its resetting, its balancing, its coming down.. Homes that sold above list price likely received multiple offers. 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. 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. 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. I just felt totally iced out, Branca said. Utah benefits from a strong economy, and, despite Utah housing prices being higher than the national average, there is still more demand for houses than available inventory. This data does not reflect actual moves. Here are what other organizations and firms are predicting: Glenn Kelman, CEO of Redfin, predicted on a Jan. 4 episode of Barrons Live that the real estate market, particularly when it comes to real estate agents, will experience a painful constriction in 2023. It has been one of if not the most competitive markets in the US in 2021. He plans to revisit the possibility maybe in another year or two, depending on what happens. Please check your email to verify your account. In its December 2022 monthly report, Realtor.com said its monthly housing data showed a housing market thats continuing to cool, with the number of homes for sale up by 54.7% compared to the same time last year. must have viewed at least 10 homes in a three month period. 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. Homes are under construction in South Jordan on Wednesday, Dec. 21, 2022. 36 days on the market. Even a two-year period will historically yield an increase in equity in the Utah housing market. Yeah, thats a valid point, Wood replied, drawing laughs from the crowd. They can step back and wait for the dust to settle., As a result, Wood predicted price declines that have been tumbling since May will stabilize by the third quarter of 2023, and the annual median sales price for 2023 will likely be within a few percentage points one way or another of 2022., Worst case scenario, Wood added, prices down about 5%; best case scenario, prices equal to 2022.. Months supply of inventory: 3 - up from 1 in September 2021. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. Along with his love of family, he has a very strong competitive spirit, is passionate about personal development, and truly cares for others. 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? But by the end of the year, well stabilize and well be flat, Wood said. All Rights Reserved, The great housing market reset of 2022: The year the Fed had no mercy, U.S. navigating pandemic housing bubble, Fed chairman says. Nationwide, housing pandemic hot spots in the West have been among the first to see sale prices slashed. 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. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. 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. Its going to be tough for real estate agents. Historical Utah real estate data and trends are included below the latest update. But housing costs werent nearly as high back then, Eskic interjected. Then the rates hit and they were left holding the bag, Eskic said. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. Salt Lake Housing Market Forecast with Real Estate Prices for 2032: August 2032: Open: 666286: Min: 635950: Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. Look at housing prices, they were sticky. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. 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. 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. According to the Utah real estate market predictions from industry experts, there will be an influx of sellers in the state given the present condition of not having enough supply to meet the markets unprecedented growth. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. 2022 housing market forecast Hes predicting Utah home prices will drop 9% year over year in 2023. 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. Copyright 2023 Deseret News Publishing Company. He expects buyers and sellers will step back and wait for the dust to settle, many of them locked in at low, 3% mortgage rates that helped send the nations housing market into a frenzy in 2020 and 2021. Nevertheless, at the time of the writing, the Utah housing market remains a sellers market due to the lack of inventory. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. However, prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels, noted Daniel Hale, Realtor.coms chief economist. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year.The number of newly listed homes was 1,954 and up 1.4% year over year. Therefore, the impact of increasing interest rates has been felt more in the state than in other parts of the country. We go back to the 70s, for example, Eskic said. 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. Families flourish in Utah. Dont focus on the loss you may believe you are experiencing if you sell today. The competition has been made even tougher since the pandemic started, with people from California and Colorado making their exodus to the Beehive State in search of more affordable housing along with a good educational system and a lower cost of living. Compass announced a third round of layoffs on Thursday, according to The Real Deal. Its going to be tough for home builders, Wood said. Alfred is a content writer with years of experience writing about the US housing market. Its falling off faster than we thought it would.. 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. Given the Utah housing market forecast 2022, here are the top real estate markets any wise investor can add to their real estate portfolio. How far will they fall? But what about the increase in interest rates? Eskic has a more bearish outlook. The governor said his proposed budget should translate to about 1,100 new low-income units across the state. 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. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. Therefore, experts expect that Utah home prices will slow down their staggering growth and may decline in some areas. The mortgage rates will likely continue to rise compared to what they are today. 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. The time to purchase your primary residence is today and has almost always been today. But having price declines is really unusual, Wood said. CA License #01950016. As a result, average days on market have increased, and sellers are becoming more open to negotiation. 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. The average annual profit of property investment was: 10.098% in 2018; . Utah has had quite a long history of rapid acceleration where house prices are concerned. If you are using a screen reader, or having trouble reading this website, please call Redfin Customer Support for help at 1-844-759-7732. 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? REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 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. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. In many respects it will be an uphill journey given. If rates had risen to around 4.5%, the train would still go. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. Search and compare real estate agents near you. Median home price: $533,500 a 5.6% Y.o.Y. Homes on the market: 11,172. Realtor.com recently named the Salt Lake City region as the expected No. Considering how crazy the market was in 2020 and 2021, here is the Utah housing market forecast 2022 edition. Months supply of inventory: 3 up from 1 in September 2021. 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.. Statewide, housing . 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%. Both bearded men chuckled, along with laughs and applause from the audience. Love hunting, fishing, or anything outdoors? 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. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. So many factors come into play. 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. 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. 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. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! While neither Wood nor Eskic are predicting a catastrophic, 2007-like crash, they do expect 2023 to be a challenging year, especially for homebuilders that leaned hard into speculative building in 2021. Sellers could no longer do whatever they wanted, Perry said, and suddenly buyers had more options at least those who could still afford to buy. 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. The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. 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. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. Buyers finally have market power. Utah home prices remain significantly higher than the national average. While interest rates remain high, the coming year will likely see continued cooling of the housing market in Utah; however, lack of supply will buffer most markets. If you divided your housing price by your annual income, it was 2.6. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. 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?. At the time of the writing, the Utah housing market remains a sellers market as the available inventory is not keeping up with the demand despite an increase in the number of houses for sale and months of housing supply. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. He's predicting Utah home prices will drop 9% year over year in 2023. 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