utah housing market predictions 2022
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. Boating in Utah can be an unmatched experience. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. So hire an experienced top-producing agent to help you price, market, and negotiate the best deal possible. But its not the bubble we know, The Wests sharp housing market correction: Heres how fast home prices have fallen in 4 months, Housing market is correcting but Utahs affordability crisis isnt going away. 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. Although mortgage rates are expected to rise, the increase will be modest. The time to purchase your primary residence is today and has almost always been today. 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. So its really tough to say, but I think its going to be minimal negative, or negative positive, Yun said. Utah Housing Market Forecast in 2023. It just seems so odd to be in such a comfortable position and not have that as a practical option. 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. Even with the recent slowdown, a correctly priced home will sell, and it will sell with record equity growth over the last 10-year average. In many respects it will be an uphill journey given. Compass announced a third round of layoffs on Thursday, according to The Real Deal. Over the past 12 months, the state added 43,300 jobs. price indicates that the housing market is competitive and bidding wars are becoming more common. Median List Price $524,900 $285/sqft Based on all homes listed in January 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. 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. He has a background in sales and marketing and construction as a Project Superintendent. It took an average of 55 days to sell a home during the fourth quarter. They also anticipate prices to grow 8.5% and sales to grow 15.2%. All Rights Reserved. You can try RealAdvisor home value appraiser, to get the value of your home in Utah. Although predicting the future is always an exercise of caution, it is unlikely that the Utah housing market will collapse in 2023. The average annual profit of property investment was: 10.098% in 2018; . 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. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. Love hunting, fishing, or anything outdoors? 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. Even a two-year period will historically yield an increase in equity in the Utah housing market. When he first started looking in November 2021 and into early 2022, Salt Lake Countys median single-family home price had hit $580,000, up 24% from a year earlier, according to the Salt Lake Board of Realtors. Real estate investors number by the thousands in the US. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. TREC:Info About Brokerage Services,Consumer Protection Notice. Next came Sacramento, Las Vegas, Phoenix, and Tampa. Even as mortgage rates in recent weeks have ticked down slightly, economists are expecting higher rates to continue to dampen sales throughout 2023. 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%. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. The average months of supply is 3 months, up 3 year over year. Branca said hes struck by how wild todays home buying reality is. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. Utah home prices remain significantly higher than the national average. Realtor.com isn't the only group offering a strong forecast for the Salt Lake City real estate scene in 2022. 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. Even with todays rising mortgage rates, it will continue to be the time to buy a house in Utah. Homes that sold above list price likely received multiple offers. That said, listing prices were higher in Morgan, Wasatch, and Summit counties compared to the prior quarter. Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. Is the Utah housing market going to crash in 2023? 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. Love hiking, biking, or camping? 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. Cache County Housing Market Trends. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. 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. And while the days of sub-3% rates are gone, they are not expected to go exorbitantly high. Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. The surge in home prices across the country resulted in many thinking homes were sold for more than theyre worth. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! 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. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. On average, the number of homes sold was down 34.7% year over year and there were 1,769 homes sold in January this year, down 2,712 homes sold in January last year. Like, they were not outrageous houses or homes that would have been that (price) five or 10 years ago.. Thats a good thing, because they were overpriced anyway, right? Perry said. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. This would place . In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. Alfred is a content writer with years of experience writing about the US housing market. 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.. By Sarah Burns of The Salt Lake Local Real Estate Group, October 21, 2021 Utah State #2 in Housing Price Increases Utah's equity gains sat at 28.3% between 2020 and 2021, making Utah #2 in housing . We always have deceleration in the rate of increases as the cycle plays itself out. Therefore, experts expect that Utah home prices will slow down their staggering growth and may decline in some areas. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. What is the housing market like right now? Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. With the low amount of inventory, sellers will continue to enjoy multiple offers, with some buyers willing to fork over way above market price to beat out other potential buyers. Utahs housing market is starting to feel the rising interest rates, resulting in plateaued price growth. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. By April, mortgage rates had begun shooting up. The rental market is not affordable and is experiencing high rental prices. They. My current forecast is that mortgage rates will trend lower as we move through the year. The Ha read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. 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. According to Realtor.com data, the current median days listed in Utah is 52, the highest since the onset of the pandemic, but still a ways away from pre-pandemic figures. Therefore, although Utah home prices may decline in the coming months, the Utah housing market should remain relatively strong and correct itself for more sustainable growth. 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