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. Half a million people from one state alone. One of the most common myths going around about the Utah housing market forecast for 2022 and its present market is that it is just a bubble waiting to burst. We hope that this information may assist you with making better-informed real estate decisions. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. Its going to be tough for real estate agents. Next came Sacramento, Las Vegas, Phoenix, and Tampa. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. 2020 further increased that number to almost 73% as median home sales prices reached $380,000. Already have a FastExpert account? This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. 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. Forecasted home price change: +8.5%. 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. However, prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels, noted Daniel Hale, Realtor.coms chief economist. Historically, brief and prolonged price declines in Utah went hand in hand with joblessness and recessions, both of which dont seem likely in the next two to three years. Where do we go from here? Theres going to be a terrible consolidation, he said, though he added he believes ultimately itll be good for the industry., In 2020 and 2021, when Congress was writing COVID-19 stimulus checks, Kelman said real estate diversified in an interesting way because those stimulus checks allowed people to experiment with real estate.. There are currently 8,551 residential homes for sale in the United States.. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. Statewide, housing . Is the Utah housing market going to crash in 2023? Yes! Utah Housing Market Forecast 2022: The Complete Guide, Step-by-Step tips on using real estate analytics, Top Investment Properties for Sale in Midway, Top Investment Properties for Sale in North Ogden, Top Investment Properties for Sale in Ogden, Top Investment Properties for Sale in Orem, Top Investment Properties for Sale in Payson, Top Investment Properties for Sale in Provo, Top Investment Properties for Sale in Salt Lake City, Top Investment Properties for Sale in Sandy, Top Investment Properties for Sale in Santa Clara, Top Investment Properties for Sale in St. George, Orlando Real Estate: Top 10 Neighborhoods to Invest In, How to Find Investment Property in the Los Angeles Real Estate Market 2018, Tampa: Hot Weather, Hot Real Estate for 2017, Hawaii Real Estate: Most Affordable Places for Traditional and Airbnb Investments 2018. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. Connect with an Agent Home prices in Utah were down 3.0% year-over-year in January. Real Estate Investing for Beginners: Where to Invest in Real Estate, Airbnb Rental Income in 2021: The 100 Best US Cities, Why You Should Be Investing in San Antonio Real Estate, Top 9 Most Profitable Airbnb Locations with Double-Digit Cash on Cash Return, Research Shows the Nashville Housing Market Is Hot for 2019. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. 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. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. The median days on the market was 70 days, up 47 year over year., The direction and pace at which home prices are changing are indicators of the strength of the housing market andwhether homes are becoming more or less affordable. Buyers finally have market power. Overall, Yun has predicted U.S. home sales to fall by 6.8% in 2023 compared to 2022, and he expects home prices to increase only 0.3%, or essentially flatline. 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. The 2021 Utah housing market will be long remembered for its record-breaking price increases. Three of the top ten most overvalued US housing markets are in Utah. increase. Other Regional Data. Utah remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. The direction and pace at which home prices are changing are indicators of the strength of the housing market and. Their goal is mainly to make a profit from investing in real estate but each of them has different approaches and strategies to achieve their goals. How much do homes in Saint George, UT cost? Colorado Data Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. 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. 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. 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. 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. The rental market is not affordable and is experiencing high rental prices. That said, listing prices were higher in Morgan, Wasatch, and Summit counties compared to the prior quarter. It would slow, but it wouldnt be stopped like it is now.. They. Thats a good thing, because they were overpriced anyway, right? Perry 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. I dont think thats happened yet.. , Homes that sold above list price likely received multiple offers. Hes employed as a professional actor and director of marketing and advertising at Hale Center Theater Orem, as well as director of communications at the Salt Lake Acting Company. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. Check! Utahs economy continues to add jobs, but the pace of growth has started to slow. READ REDFIN'S, Do not sell or share my personal information. 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. With uncertainty in the economy, predictions for Utahs housing market vary greatly. 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%. I think buyers will adjust, for one thing, Wood said, pointing to a chart that he said showed its very rare in Utah for housing prices to decline.. 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. Park City Data The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. 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. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! As mortgage rates are at record highs in 20 years by 7.08%. Comparatively speaking, I make more money than my parents combined income at my age and still cant afford to buy something at a significantly lower quality than what they were able to purchase at that same age, Branca said. It has been one of if not the most competitive markets in the US in 2021. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. 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. Agents receive this question at least 10 to 15 times per week. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. Families flourish in Utah. If you ask Branca, 2022 definitely wasnt the year for buyers either. Rates rose dramatically in 2022, but I believe that they have now peaked. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Wallethub found Utah is the. FastExpert partner and Utah real estate agent, Preston Hicks, shares his professional perspective on the Utah housing market. Utah may be the 13th-largest state in the country by area, but it is also the 11th-least densely populated. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. Here are their year-over-year predictions for the Salt Lake City housing market in 2022: Forecasted home sales change: +15.2%. Peak-to-trough, with the peak being May 2022 , he expects prices to decline by a percentage somewhere in the. 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. They also anticipate prices to grow 8.5% and sales to grow 15.2%. The Midwest, he said, will likely see minimal price increases.. 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. 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. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. 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. Affirming this projection, Wood asserts . Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. million Redfin.com users who searched for homes across more than 100 metro areas. Please note that while we have included updated and accurate Airbnb data from Mashvisor, each city and county have different rules and regulations about short-term rentals. If you find it useful, please properly attribute this resource with a link. 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. Historically, Utah has weathered downturns and national economic disasters with less adverse effects than the other 49 States in the Union. Both bearded men chuckled, along with laughs and applause from the audience. Months supply of inventory: 3 up from 1 in September 2021. Mashvisors Utah housing market forecast 2022 and pretty much all other real estate forecasts for the year have identified Salt Lake City metro area as the countrys hottest housing market-beating other burgeoning areas like Boise ID and Spokane WA. Sell or share my personal information: Forecasted home sales change: utah housing market predictions 2022 % if the. Personal information higher financing costs may have created a price ceiling is now users who searched for homes across than. 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