Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. The Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! However, as the level of Utah housing prices outstripped the national average, the demand is bound to decline as salaries are not increasing nearly as fast as property prices. 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. 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. 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. Median List Price $524,900 $285/sqft Based on all homes listed in January 2023. -0.63% home value decrease month over month. Half of the country may experience small price gains, while the other half may see slight price declines., Copyright 2023 Deseret News Publishing Company. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. And to Branca, that meant home ownership became completely inaccessible.. 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. 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. Dont wait. Utah continues to be a light upon a hill to others throughout the States and even worldwide. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. 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. 36 days on the market. Colorado Data As mortgage rates are at record highs in 20 years by 7.08%. 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%. 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. 27.7% of homes sold above the asking price. Market time rose 22 days from the third quarter of 2022. Joseph Branca, left, makes a drink while his partner Scotty Fletcher makes dinner at their apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. After seven years of Salt Lake County sales averaging 18,000 homes, the high prices of 2023 will mean sales will not top 13,000, he predicted, and likely range between 11,000 to 12,000. Buyers finally have market power. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. 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. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. Some investors flip houses, others wholesale them. We break down our data by county, but we cover major cities in this region including Salt Lake City, West Valley City, Provo, and West Jordan. As the demand for housing decreases as buyers find themselves priced out of the market by the increasing cost of borrowing money or postpone their homebuying plans to preserve their buying power, we can expect Utah housing prices to stabilize or diminish. In his report for Utah, Wood wrote its very unlikely that the recent price run-up represents a housing bubble, though he added, We dont know if a bubble exists until after it bursts. He cited Alan Greenspan, an economist and past chairman of the Federal Reserve, who defined a housing bubble as a prolonged period of housing price declines. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. So unless we have a real serious recession, I think prices have some support given our economy.. Historical Utah real estate data and trends are included below the latest update. Realtor.com anticipates Salt Lake City metro home-price growth will be at 8.5% and home-sales growth at 15.2% in 2022. I just felt totally iced out, Branca said. Statewide, housing . The good news for buyers who are prepared to take on high mortgage rates is that they no longer face the fierce competition of early 2022. Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. Historically speaking, real estate only becomes more expensive over time. 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. CA License #01950016. 1 housing market in the nation for 2022. 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? The Utah housing market is following many of the same patterns observed nationwide. Sign up now for a free 7-day trial and get 15% off on your subscription. Login. So hire an experienced top-producing agent to help you price, market, and negotiate the best deal possible. Eskic said it all comes down to affordability. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. How can I get a free valuation of a home in Utah? Heres why, Why are house prices so high? While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Its going to be tough for home builders, Wood said. In many respects it will be an uphill journey given. If you ask Branca, 2022 definitely wasnt the year for buyers either. 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. between 2021-12-31 and 2022-12-31. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. If inflation continues to fall, as I expect it will, rates will continue to drop. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. The 2022 for-sale home supply is expected to begin recovering from recent declines, but millennial demand will likely keep supply limited through at least 2025. All rights reserved. These factors positioned Utah in the top spot on the Bankrate Housing Heat Index. shattering the 43-year-old record of 20.1% set in 1978," wrote James Wood in the 2022 Housing Forecast Executive Report. 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. With nearly 2,000 miles of shoreline, Lake Powell possesses endless outdoor adventures. 2024 will be better, Jim Wood, one of Utahs leading housing experts, told the crowd gathered at the Grand America Hotel in Salt Lake City for the Salt Lake Board of Realtors 2023 housing forecast Friday. Love hunting, fishing, or anything outdoors? Utah remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. 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. 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. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high. Sign In. Browse through the largest marketplace of Real Estate professionals, We have an in-house team that will guide you through the process. 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. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. Gone are the days of brutal competition. The Midwest, he said, will likely see minimal price increases.. 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. Compass announced a third round of layoffs on Thursday, according to The Real Deal. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. 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. 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. 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. The median days on the market was 70 days, up 47 year over year. Rates rose dramatically in 2022, but I believe that they have now peaked. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. Therefore, the Utah housing market is to be expected to slow down. Homes sold fastest in Salt Lake County and slowest in Summit County. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. Despite the wild 2021 ride we all took inflation, a spike in gas prices, and a persistent global health crisis 2022 is looking to be another unique year for the Utah real estate market. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median priceof $518,200. High-cost areas like San Francisco, he said, will see a 15% price decline. The slate of speakers all sought to help bring clarity to a market that they said has largely been fraught with volatility and uncertainty as mortgage rates, some days hovering around 7%, have squeezed buyers and have brought a rapid end to what had been over two years of a blazing hot market. Home sales: 3,219 26.7% less than a year ago. Why is it taking two weeks, a month, six weeks?. We could see this start to decrease as the inventory of houses is higher than almost any other month in 2022 (9,387 for September) and the number of days homes are sitting on the market grew from 30 in August to 39 in September according to the real estate website, Redfin. In 2021, buyers were getting raked over the coals, having to give a years supply of pizza with their offer. Thats not hyperbole, he said. There were 73 homes sold in December this . 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. The number of newly listed homes was 1,954 and up 1.4% year over year. Heres why, Buying a house? Hes predicting Utah home prices will drop 9% year over year in 2023. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. Utah Housing Market Forecast in 2023. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Right now, its close to 5. We went through a real roller coaster ride the past couple of years mainly because of the pandemic. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. In addition, inflation and the looming specter of a recession are also taking a toll on Utah residents buying power. , Homes that sold above list price likely received multiple offers. increase. Months supply of inventory: 3 - up from 1 in September 2021. Even as the cost of borrowing falls, home prices in expensive markets will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer. 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. However, during the Great Recession, prices declined for years before accelerating again. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. RELATED: 'It's daunting:' How housing costs are affecting Utah's ski resort staff Listing prices, rents, and mortgage rates are all expected to climb while income rises. On average, homes in Cache County sell after 57 days on the market compared to 12 days last year. Focus on the unbelievable increase you have gained over the past 10, 5, or even 2 years! It just seems so odd to be in such a comfortable position and not have that as a practical option. There are currently 8,551 residential homes for sale in the United States.. 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. In addition, the number of homes has increased along with significant population growth. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. Utah faces a shortage of 31,000 homes. 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. To Eskic, 2022 was the year of the Fed. In his mind, it was a federal miscalculation to raise borrowing rates so high and so fast after two runaway years. Affirming this projection, Wood asserts . The 2021 Utah housing market will be long remembered for its record-breaking price increases. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. How far will they fall? Property values will likely decline over the next 6 to 12 months and then flatten in the Utah housing market. (Now) its resetting, its balancing, its coming down.. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 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. If you divided your housing price by your annual income, it was 2.6. They also anticipate prices to grow 8.5% and sales to grow 15.2%. While that remains to be seen, whats clear is that demographic tailwinds will keep the demand for housing robust this decade. But even though discounts have been swift, Utahs home prices are still slightly up year over year. How is the real estate market in Utah? 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. We hope that by publishing this Utah housing market forecast 2022 edition, we have shed some light and provided insight into some of the questions and concerns prospective investors and buyers may have. So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. 2.1 months of housing inventory. I have moved the needle accordingly. Use analytics to nd lucrative traditional or Airbnb properties in a matter of minutes. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. 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. Nationwide, housing pandemic hot spots in the West have been among the first to see sale prices slashed. Average income: 74197. After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. Is the Utah housing market going to crash in 2023? 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. Home prices in Utah were down 3.0% year-over-year in January. For renters, these relentless price increases mean the path to ownership has narrowed even further. This would place . Find an experienced, trusted local real estate agent with FastExpert. This trend continued through the pandemic resulting in record-high home prices and rental rate growth. The Utah housing market does not yet significantly favor home buyers but, given the data discussed in this report, it has certainly shifted away from sellers and into neutral territory. Wood, the Ivory-Boyer Senior Fellow at the University of Utahs Kem C. Gardner Policy Institute, detailed his forecast report commissioned by the Salt Lake Board of Realtors, explaining why he still feels optimistic for real estate even if 2023 wont be a year of celebration.. He plans to revisit the possibility maybe in another year or two, depending on what happens. Median home price: $533,500 a 5.6% Y.o.Y. 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. If the agent you hired through FastExpert does not perform up to your expectations, we will help resolve the problem. Utahs housing experts continue to shy away from the word crash, since what happened in 2022 is still nothing like what happened after the 2006 housing bubble popped. By April, mortgage rates had begun shooting up. All Rights Reserved, What will 2023 bring to the housing market? 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. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. Peak-to-trough, with the peak 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. Median home price for Salt Lake residents over the last year was $564,062. First-time homebuyers will need to be successful in the 2022 housing market if we are going to see the homeownership rate begin to climb again. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. In Utah, because of its continued strong job economy, experts predict the states housing market to experience some turbulence in 2023 but come out strong next year. 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