Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. According to Realtor.com sales will rise 15.2% and prices will increase by 8.5%. Remember, caveat emptor still applies when buying a property anywhere. https://www.zillow.com/salt-lake-city-ut/home-values/, https://www.zillow.com/salt-lake-city-metro-ut_r395053/home-values/, https://www.bankrate.com/mortgages/housing-heat-index/, https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx, https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx, https://slrealtors.com/wp-content/uploads/2021/01/2021-Housing-Forecast-Report.pdf, https://www.realtor.com/realestateandhomes-search/Utah/overview, https://www.sltrib.com/news/2021/06/24/hyper-hyper-competitive/, https://www.zumper.com/rent-research/salt-lake-city-ut, https://www.realtytrac.com/statsandtrends/foreclosuretrends/ut/salt-lake-county/salt-lake-city/, https://www.ksl.com/?sid=46284050&nid=1426https://www.buildium.com/laws/utah-evictions-process/, https://en.wikipedia.org/wiki/Salt_Lake_City, https://www.deseret.com/utah/2021/9/16/22677951/utah-homes-sales-are-slowing-but-the-market-is-still-red-hot-salt-lake-county-city-housing-prices, http://www.cbre.us/people-and-offices/corporate-offices/salt-lake-city/salt-lake-city-media-center/cbre-releases-2018-salt-lake-city-real-estate-market-outlook, Housing Market News 2023: Today's Market Update, The Housing Market in 2023: Trends and Insights, Housing Market Predictions | Real Estate Market Forecast 2023, Is it a Good Time to Buy a House or Should I Wait Until 2024, Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years. approximately 186,419 people. Now that you know where Salt Lake City is, you probably want to know why were recommending it to real estate investors. Home listings will no longer go out of inventory at a faster pace. Buyers need to be prepared to go above and beyond to get the house of their dreams. A home inspector can help the buyer inspect the property thoroughly. Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. In contrast, Salt Lake City is booming because it is business-friendly. Also, get secure & powerful listing using Houzeo Mobile App. An added bonus of an energy efficient house is less noise pollution especially if you live in a big city. Offer financial incentives like covering all closing costs, accepting all inspections, or providing a transferable home warranty. A recent report on the forecasts for Utah's housing market in 2023 was given by Jim Wood, a housing economist at the University of Utah's Kem C. Gardner Policy Institute, and Lawrence Yun, chief economist and senior vice president for research at the National Association of Realtors projects that 2023 will be a challenging year for the housing market, with interest rate hikes, falling home sales, and dropping home prices. Thus, demand increases and prices rise as well. It provides many opportunities to investors, regardless of the market you want to invest in. The personal balance sheets of homeowners are much stronger today than they were 15 years ago, which is a clear difference between now and then. To get the top dollar value for your money, its beneficial to focus on the local housing market in Utah. What Do You Need to Get Preapproved For a Mortgage:Find out how you can get your mortgage approved digitally. Take your time and be strategic about your home improvement choices to ensure that smart energy technology is going into your home. In December, prices were up 24%, just slightly below the largest gain of 27% in June and theres no sign yet of a slowdown. The housing market refers to properties bought and sold directly to buyers or through real estate brokers. The Total number of properties sold during the period. Rich Sarkis. Based on the estimates of seven organizations, the average rate for 2022 is 3.55 percent. 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. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Before you begin, make sure you have a solid financial condition. Utah Home Sales In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. NAR Chief Economist predicts that Mortgage rates will continue to rise in 2023, but within two years rate should return to 5.5% or 6% percent., He also anticipates that over the next 5 years, home prices will elevate by 15% to 25%. The Baltimore real estate market is promising and shows a new increase of opportunities for both buyers and sellers. You can end a month-to-month tenancy with 15 days of notice. It took an average of 55 days to sell a home during the fourth quarter. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. Contact Us, Real Estate Blog Realtor.com predicts that Salt Lake Citys median sale prices will rise 8.5% in 2022. Utahs nonfarm payroll employment for December 2021 increased an estimated 3.7% across the past 24 months, with the states economy adding a cumulative 59,200 jobs since December 2019. Utahs economy progressed through 2021. While the city limits encompass 110 square miles, downtown runs nearly two miles from east to west and nearly two miles north to south. Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. They also think that people who are first-time homebuyers in Utah will be priced out of the market by people moving in from other states. You will reduce your carbon footprint and your water consumption. Next came Phoenix, Las Vegas, Sacramento, and Tampa. Best Time to Buy a House: Know exactly when it is best to buy a house! Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. I have moved the needle accordingly. Utahs median house price will continue to rise in 2022 especially because of buyer competition and everyones urgency to get ahead of increasing interest rates. Heres our guide. South Salt Lake had the fastest growing rent, up 20.2% since this time last year. An energy efficient house has a higher resale value than just a regular house. Join Us The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. Learn what happens to the Utah housing market during a recession. Realtor.com's forecast and housing market predictions on key trends that will shape the year ahead. Once your house sells, youll need to buy another one, so youll have to bid against other buyers in an overvalued market. Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. However, the year-to-date (YTD) sales volume for 2022 only decreased by 20.6% compared to 2021, with 44,602 homes sold in 2022. Inventory or Homes for sale refers to the number of unsold residential and commercial real estate units. Housing Market Predictions 2023: Will Home Prices Drop in 2023? Before the 2008 housing market crash, the housing supply or inventory peaked at a 13-month supply. 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. The Utah housing market is amid a major shift. Even though homebuilding soared in Utah in 2021, putting the state on the national map for its housing boom. Why are houses so expensive in Utah? There has been a gradual decline in homebuyer interest. Get a clear insight here. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. A housing bubble bursts when demand decreases and supply increases. However, rates will still be higher than what homebuyers have become accustomed to. The rapid appreciation witnessed over the past two years may have begun to decelerate as a result of rising financing costs and deteriorating affordability. Current Housing Market Trend 2022: The supply of homes remains historically low, according to Lawrence Yun, NAR Chief Economist and Senior Vice President of Research. Additional links: Historical Utah Data must have viewed at least 10 homes in a three month period. Realtors provide access to the MLS, but you can skip this and list on MLS via the Flat Fee MLS listing service. List your property on MLS for the best results. 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. A list price in real estate is the price of a house for sale determined by the seller and her listing agent. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. The highest increases were seen in Piute County (where there was a 32.6% increase), Duchesne County (where there was a 44% increase), and Garfield County (where there was a 38% increase). Basset does say that Utah buyers should be ready for a brutal market when it comes to stepping into the Utah housing market, to know what exaclty youre getting into, and make sure you get an amazing agent. Therefore, these forecasts should be taken as a general indication and not a guarantee. A change in family dynamics can significantly impact your decision to sell your home. The December national unemployment rate continued to decline, registering 3.9%. Utahs economy continues to add jobs, but the pace of growth has started to slow. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Prices will fall, but not to the extent homeowners experienced during the Great Recession. Utah's employment landscape is also one of the most impressive in the country. Yes, if you are in a stable financial position. price indicates that the housing market is competitive and bidding wars are becoming more common. Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years March 2, 2023 by Marco Santarelli Housing Market Predictions for Next 5 Years The housing market is a crucial component of the US economy, and predicting its future trends and fluctuations can be difficult, especially as external factors can influence the market. xd. Millennials and Hispanics are in their prime buying years. Homes sold fastest in Salt Lake County and slowest in Summit County. Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, according to the Salt Lake Board of Realtors. Prices will return to Q4 2019 levels by Q3 2021. These renovations may inflate the homes value. If you are looking for an affordable real estate market with a high potential for return on investment, you should consider Salt Lake City in 2021. of $519,300. In short, huge supply and minimum demand. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. Home prices may continue to fall but will not be enough to offset the higher interest rate. The 2023 Official UTAH Housing Forecast in Salt Lake City. The median rent is $1,270. 30251 Golden Lantern, Suite E-261 The countrys economic power directly affects the housing markets in the US. Over the past 12 months, the state added 43,300 jobs. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. Major changes in a countrys demographics can have a long-term impact on current Utah housing market trends. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. A housing market bubble refers to a steep incline in prices with increasing demand and limited supply. Housing Market Crash: What Happens to Homeowners if it Crashes? xm. This results in defaults and foreclosures, ultimately increasing the market supply of homes. How Buyers and Sellers Can Navigate a Hot Utah Housing Market. Lowering your debt-to-income ratio will help you easily qualify for a mortgage preapproval when applying for a loan. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. . The inevitable results are a decline in prices and sales. How To Invest in Real Estate During a Recession? The average sold home was on the market for two weeks. Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, Figure 1. With the observed trend, higher interest rates could cause a 10% drop in home sales next year. Subscribe to get our top real estate investing content. A buyer is required to make a sound decision based on their needs, budget, and research. And there are signs that the city is starting to turn around. This ongoing scarcity of inventory explains why many buyers are still forced to bid up prices. Some experts expect prices to decline in 2023, depending on what happens with interest rates in 2023. Even if inventory is significantly higher than it has been in the previous two years, it still does not address what has been a problem in Utah for years. As the mortgage rate decreases, it gets more convenient for the homebuyer to afford a home. To avoid entering into a real estate transaction too early, it is best to wait and time the market. By researching and structuring completeSalt Lake City turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. Mortgage Interest Rates Forecast, Predictions, Trends 2023, Economic Forecast 2022-2023: Forecast for Next 5 Years. It is equally impressive to see that the unemployment rate remained at a very low level even as the state added over 52,400 people to the workforce. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. Perhaps you are looking for a slightly different hold-over, an investment property in Salt Lake City that you might move into or sell at retirement in the future. When we look at year-to-date median home prices for 2021 and 2022, we can see that most counties also experienced an increase in median home prices. The average time it took to sell a home in the counties covered by the report rose 27 days compared to the same period in 2021. The same can be said about the Salt Lake County real estate 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. Carbon County has the least expensive housing market in Utah with a median price of $184,000. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. Economists believe the housing market will slow down but not crash soon. Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. But now your energy and utility bills are sky high and youre looking to move on to bigger and better things. Utah's population grew by 18.4% over the past decade, making it the fastest-growing state. Other Regional Data. Asmortgage companies in Utahmake it harder to get a loan, home affordability suffers and reduces the demand. The state's unemployment rate stood at 2.2% in November 2022, marginally below the prior year's rate. Looking for support? Theres a slight hope that inflationary pressure eases and mortgage rates fall next year, such that buyers may feel less pressure. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. Utah housing market has been ranked as the nation's #1 housing market for the strongest pace of job growth, along with low unemployment, low mortgage rates, few mortgage delinquencies, and low state & local taxes, according to Bankrate.com. Salt Lake City's appreciation rates in the last twelve months (2021 Q2 2022 Q2) continue to be some of the highest in the nation, at 15.48%. The number of homes sold also decreased in most counties. Norada Real Estate Investments It defines the composition of the population based on age, race, gender, income, migration patterns, and growth. A mortgage application is a document submitted to the lender to buy real estate properties. There was a 98.0% sale-to-list price, down 2.7 points year over year. Home values are expected to go down by 5% to 10% due to unaffordability. The Fastest Growing Cities For Rents in the Salt Lake City Metro Area (Y/Y%), The Fastest Growing Cities For Rents in the Salt Lake City Metro Area (M/M%). Connect with an Agent These areCash-Flow Rental Propertieslocated in some of the best neighborhoods of Salt Lake City. Until housing inventory remains low. Salt Lake City's population is also very young. People have flocked to Utah especially for the steady stream of STEM related fields of work available. Know how to sell as is. Selling FSBO is more popular and high-tech than ever. The largest percentage of the city's population falls in the 25 to 39-year-old age group. Doesnt matter if youre in a hot sellers market or a slow buyers market. The median days on the market was 69 days, up 46 year over year. Eskic doesnt see an end to the rising demand of houses in Utah though interest rates could cool that demand just a little bit. How to Find Investment Properties for Sale in 2023? Couple that with a high school graduation rate, and a large number of college graduates and you have an attractive workforce for many large companies. No. A real estate housing market or real estate market refers to a network of buyers and sellers looking to buy and sell real estate. 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. In-migration to the Salt Lake metropolitan area is still at an all-time high. You can either choose to invest in your future or market your home to potential buyers. A real estate agent or broker was used by 86% of buyers to purchase their homes. It is likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. In fact, the $400,000 house in Utah with four bedrooms and a yard looks cheap when you sold a two-bedroom condo for 50% more than that in California. Logan: Like Provo and Ogden, Logan may experience some slight declines over the next year, with decreases of up to 0.4%, but is expected to rebound with a more significant increase of up to 1.7% by January 2024. You can sell your house to cash buyers, IBuyer, or anyone else. Multiple options make it easier to get a loan. Although Utah will not see a recession, job gains are expected to slow down. Affordability issues may impact rapid price increases in 2022, but we may still see another year of a double-digit increase. The average sale price in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. The data is provided by UtahRealEstate.com, the leading provider of real estate technology in Utah and one of the largest Multiple Listing Services in the United States. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. The Salt Lake City real estate market has been one of Millennials' toughest real estate markets due to limited supply relative to demand. ye votes Vote Now . Look up here. Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. Salt Lake City has a track record of being one of the best long-term real estate investments in the U.S. Consult with one of the investment counselors who can help build you a custom portfolio of Salt Lake City turnkey properties. The industry tends to spread out along the highways, and housing follows. Thirty five percent of home purchases made in 2021 were by first time home buyers. Vernal: Vernal is expected to experience steady growth in the coming years, with gains of up to 1.7% by January 2024. Either way, knowing your profit potential and purpose is the first thing to consider. Rental Property Insurance: Protect Your Investment Today, 21 Best Cities to Invest in Real Estate in 2023, Orange County Housing Market Forecast & Trends 2023, Sacramento Real Estate Market: Prices, Trends, Forecast 2023, Southern California Housing Market Forecast 2023, Chicago Real Estate Market: Prices, Trends, Forecast 2023, AZ Housing Market: Prices And Forecast 2023, Boston Real Estate Market: Prices, Trends, Forecast 2023, Las Vegas Real Estate Market: Prices, Trends, Forecast 2023, Myrtle Beach Housing Market: Prices, Trends, Forecast 2023, Salt Lake City turnkey real estate investments. In January 2023, home prices in Utah were down 2.8% compared to last year, selling for a median price. As mortgage rates are at record highs in 20 years by 7.08%. Hes also the host of the top-ratedpodcastPassive Real Estate Investing. What is MLS in Real Estate: Everything You Need to Know. Salt Lake City: While there may be some slight dips and gains over the next year, overall, the housing market in Salt Lake City is expected to remain relatively stable, with modest gains of up to 1.2% by January 2024. The median price of a home in the United States is currently $519,300. Utah boasts the nations strongest pace of job growth, along with rock-bottom unemployment, ultra-low mortgage rates, few mortgage delinquencies, and low state and local taxes. There are still insufficient homes. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. As it becomes easier for buyers to get a loan, the demand consistently increases. The latest housing data shows the median priced home in Utah's most populated county increased to $550,000 in the third quarter of 2021. This puts constant pressure on the Salt Lake City real estate market. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. A few sellers are still in a dilemma considering the slow market, high inventory, decreasing home prices, and increasing mortgage rates. Do not sell or share my personal information. Salt Lake City is a moderately walkable city with a population of approximately 186,419 people. St. George: Despite some minor fluctuations, St. George is expected to continue to experience positive price growth, with gains of up to 0.9% by January 2024. 89% of Buyers said they would go with their real estate agent again or recommend them to others. The other is supply. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. The US housing market is in the midst of some significant changes, as average mortgage rates have increased by 80 basis points in just the past two weeks, rising from 5.99 to 6.80 for an average 30-year fixed-rate mortgage. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Before proceeding, buyers must calculate their monthly housing costs using a mortgage calculator. At an annual rate of 2.6%, this was the slowest pace of growth since the state started recovering jobs post-COVID. Twenty-four of Utahs 29 counties had double-digit gains. Experts are expecting real estate values to fall over the . Cedar City: While there may be some slight declines over the next year, Cedar City is expected to experience steady growth overall, with gains of up to 2.1% by January 2024. Understanding current government policies can help you predict the demand and supply and identify potentially false Utah real estate market news. Read these exclusiveHouzeo.com reviewsand learn why it is one of thebest FSBO sitesin America. You must be thinking about selling your home. Utah market trends and housing statistics. A record 56% of homes sold above asking price during the four-week period ending May 1, up from 47% a year earlier, Redfin says. Highland Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Highland? An increase in interest rates makes homeownership unaffordable for more potential buyers. Couple that with a high school graduation rate, and a large number of college graduates and you have an attractive workforce for many large companies. Basset says that if a crash does happen, it will happen more gradually than the crash in 2008 because of tighter lending standards and a dramatic decrease in inventory. 3,051 homes were sold in Utah in January 2022, down 7.2% for January 2021. Some experts predict that due to low inventory, home prices wont drop in 2023. This would. There are currently 8,545 residential homes for sale in the United States.. Just 2,778 Utah homes were for sale in February 2022 compared to the 9,000 houses during the same period in 2020. Nerd wallet expects rates for fixed-rates mortgages to rise and then fall to about a 4% increase and stay steady there. Given the roller-coaster ride inventory has been on lately, it's important to keep historical context . Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary.