Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. The client gave a slightly crooked smile to suggest that I am not only biased but also a Realtor who makes a living by selling properties in Utah. Or if its little more meaningful declines, a 10% decline, take advantage of those because 10 years from now youll see much better conditions.. Still seemed achievable. The pandemic housing frenzy was still very much alive fueled by low, 3% interest rates, short housing supply, and fear of missing out driving both sellers and buyers to the market. He graduated from Spanish Fork High School. Over 2022, the Federal Reserve has been battling sky-rocking inflation with their number one weapon, interest rates. Salt Lake City, Utah Just like Utah peaches Forecast home price change by May 2022: 23.5% Local professional: Dave Robison, broker and owner of goBE Realty, and former president of Utah Association of Realtors and Salt Lake Board of Realtors What makes the Salt Lake City market poised for growth? This is the MOST ACCURATE UTAH Housing Market Forecast for 2022. 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. The median days on the market was 70 days, up 47 year over year. Below is the latest Utah housing market trends analysis. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. How to Find Multi Family Homes for Sale in 2020. Thats not good news for affordability or Utahs housing shortage, which they calculate hit 31,000 units after the big home building boom of 2021. Utah Housing Market- Trends and Predictions for 2022, Preston Hicks Real Estate Group - JMG Utah, What does exclusive right to sell mean? A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy. Sign In. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. Blame remote work, not speculative bubble, Fed study says, 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. 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. This, combined with higher mortgage rates, likely impacted sales in the fourth quarter. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. increase. The median sale price for a house in Salt Lake City has reached $550,000, increasing by 6.3% compared to the previous year, and the median number of days on the market was 32, compared to 17 in September 2021. While at the beginning of the year, homebuyers could purchase a home at an interest rate of around 3%, currently borrowers are looking at more than 7%. After a peak of the housing market in May 2022, when the Utah median home price reached a record $577,500, Utah house prices have slowly been decreasing, although they remain higher than they were the year prior. 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. Preston was born in Provo, Utah, and raised in Spanish Fork, Utah. So many factors come into play. 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. 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. So from that affordability perspective, I think its going to keep the market from accelerating back to have a more positive price appreciation., Wood said thats a good point, but added the 70s and early 80s saw interest rates that hit as high as 18%. 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. Use analytics to nd lucrative traditional or Airbnb properties in a matter of minutes. 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. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. The discussion between Eskic and Wood was moderated by Clark Ivory, CEO of Ivory Homes, which is Utahs largest homebuilder. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. 36 days on the market. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. Forecasted home price change: +8.5%. 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. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. 2022's housing market follows Utah's hottest housing year ever . Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Salt Lake Housing Market Forecast with Real Estate Prices for 2032: August 2032: Open: 666286: Min: 635950: The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. The U.S. housing market is going through what Federal Reserve Chairman Jerome Powell has called a difficult correction and a reset as it comes off the tail end of a pandemic frenzy fueled housing bubble. In its fight with record inflation levels throughout 2022, the Fed made a series of aggressive borrowing rate hikes, which translated to a spike in mortgage rates that priced or spooked buyers out of the market. Utah faces a shortage of 31,000 homes. Search and compare real estate agents near you. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. 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. 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. So Branca wasnt expecting to buy his dream home. In addition, inflation and the looming specter of a recession are also taking a toll on Utah residents buying power. However, because of the growing number of migrants in the state, Utah is now faced with what experts say is a severe imbalance in its housing market. 1 housing market in the nation for 2022. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. I dont think thats happened yet.. 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. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. Heres why, Buying a house? In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. The market was suddenly plunged into ice cold water when the Federal Reserves war with record levels of inflation sent mortgage rates skyward, and the mask that helped drive home prices so high suddenly lifted. An increasing population and a shortage of homes have increased house prices in Utah. The median price of a home in the United States is currently $518,200.. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. How can I get a free valuation of a home in Utah? The median price of a home in the United States is currently $518,200. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. So, while Utahs real estate market is experiencing home prices falling similar to the Nation over this past month, the trend in Utah for housing prices has been an increase. 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. Utah may be the 13th-largest state in the country by area, but it is also the 11th-least densely populated. But what about the increase in interest rates? Should You Invest in the Phoenix Housing Market in 2020? No, you shouldnt wait to buy a home. READ REDFIN'S, Do not sell or share my personal information. Yes! 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. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. The average time it took to sell a home in the counties covered by this report rose 27 days compared to the same period in 2021. Dont focus on the loss you may believe you are experiencing if you sell today. -0.63% home value decrease month over month. As of November 2022, four consecutive 75 bps increases brought mortgage rates over 7%, reaching their highest level since April 2008 and standing over twice higher as the same time last year. Matthew has over 30 years of professional experience both in the U.S. and U.K. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. I dont think were going to get a recession now, in Utah., Eskic, smiling, said he and Wood should make a bet on stage. 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. A bubble is highly unlikely at this point in time because a bubble is defined as a prolonged period of actual price decline, not moderation or deceleration. That said, listing prices were higher in Morgan, Wasatch, and Summit counties compared to the prior quarter. The number of newly listed homes was 1,954 and up 1.4% year over year. Here are the latest figures, The Wests housing crunch began over a decade ago. The rising inventory, coupled with listing price growth dropping below 10% for the first time in a year, offers some positives for homebuyers, Realtor.com stated in its report, as they may have more options and more time to make a decision on a home purchase.. Although demand has softened compared to last year, pushing home price growth into single-digit territory for the first time in 12 months, moderation in home price growth may encourage more buyers to return to the market in the months ahead, and may also be welcome news for sellers aiming to sell and buy at the same time., Copyright 2023 Deseret News Publishing Company. #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. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. Wood interjected, saying hes got to defend the Fed. I just felt totally iced out, Branca said. Will it pop or deflate?, A U.S. housing bubble is brewing. 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. Sellers are reducing prices as homes stay on the market longer. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 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 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. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. Prices were 3.7% lower than in the third quarter of 2022. Already have a FastExpert account? 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. Market time rose 22 days from the third quarter of 2022. Difference Since Last Month -$ 20,090 ( -3.7%) Key Takeaway The list price of homes in Saint George has decreased by 3.7% since December. Utahs economy continues to add jobs, but the pace of growth has started to slow. Love hunting, fishing, or anything outdoors? Hang in there. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. Bidding wars are becoming more common 22 % Burns Real Estate Consulting now expects U.S. home prices will drop %... Most ACCURATE Utah housing market is competitive and bidding wars are becoming more common how can get. For Sale in 2020 has not slowed due to low unemployment rates job! 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