Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. While the market in Utah is feeling a correction similar to the rest of the Nation, it weathered the 2008 recession relatively well and is expected to maintain a strong housing market. Even a two-year period will historically yield an increase in equity in the Utah housing market. There were 73 homes sold in December this . Historically, even if the nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state resilient. Based on Redfin calculations of home data from MLS and/or public records. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Here are what other organizations and firms are predicting: Glenn Kelman, CEO of Redfin, predicted on a Jan. 4 episode of Barrons Live that the real estate market, particularly when it comes to real estate agents, will experience a painful constriction in 2023. 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. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. If youre looking to buy or sell real estate in Utah, you want to ensure youre working with a real estate agent who can help you navigate the rapidly changing conditions of the local housing markets. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy. Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. 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. They. Housing prices have skyrocketed so much, now more than half of Utah's households are unable to afford the state's median priced home, which for single-family homes was $460,000 in 2021. 2022 housing market forecast Then everything changed. We always have deceleration in the rate of increases as the cycle plays itself out. Utah continues to be a light upon a hill to others throughout the States and even worldwide. Utah may be the 13th-largest state in the country by area, but it is also the 11th-least densely populated. Since the pandemic began, housing prices in the Beehive State have skyrocketed to the point that more than 50% of households can no longer afford to buy median-priced properties in the state. The migration during the Pandemic contributed to the increased demand in the Utah housing market and an increase in housing prices. It has been one of if not the most competitive markets in the US in 2021. 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. Nationally, a growing number of experts and firms are predicting U.S. home prices will fall, some expecting slight, single-digit drops, while others expect prices to fall by double digits, perhaps even over 20%. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. Search and compare real estate agents near you. Property prices still remain high. 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. Rising financing costs will hinder housing demand and we may see home sales cooling. It just seems so odd to be in such a comfortable position and not have that as a practical option. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Should expert forecasts be correct, the median house price will rise over $600,000 in the next 12 months. There are currently 8,551 residential homes for sale in the United States. 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. Renters have seen a steady, heady increase in rents over the past year, making their window for buying even more narrow. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median price. (Now) its resetting, its balancing, its coming down.. Utah Housing Market Forecast, What To Look For In 2022 The housing market in 2021 made the "American dream" feel more and more out of reach for a lot of people. TREC:Info About Brokerage Services,Consumer Protection Notice. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. The states economy is still performing very well, but this is not enough to push the housing market forward at the pace we saw during the height of the pandemic. Heres what volatile mortgage rates are doing to your purchasing power, Stuck between rent hikes and high home prices, this family is scraping by to afford a home, still cant afford to buy something at a significantly lower quality, How the housing market is making boomers richer and millennials poorer, how many other Utahns the market has priced out, 79% of Utah households couldnt afford the states median priced home, Why two housing experts disagree on how much Utah home prices will drop in 2023, National Association of Realtors chief economist Lawrence Yun, 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. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. 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. 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. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. All of this, of course, depends on how local markets fair. Forecasted home price change: +8.5%. 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. He expects buyers and sellers will step back and wait for the dust to settle, many of them locked in at low, 3% mortgage rates that helped send the nations housing market into a frenzy in 2020 and 2021. Realtor.com has predicted that the Salt Lake City region will be the top housing market in the country for the year with an anticipated price and sales growth of 8.5% and 15.2% respectively. These two organizations along with Freddie Mac and the National Association of Realtors predict that rates will steadily rise throughout 2022. Winter sports are a highlight in Utah. The Midwest, he said, will likely see minimal price increases.. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Peak-to-trough, with thepeak 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. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Realtor.com recently named the Salt Lake City region as the expected No. A dear client asked me the other day Preston, why do you love Utah? It sounds clich, but I initially answered with a questionWhat isnt there to love about Utah?. I dont think thats happened yet.. The states unemployment rate in November was 2.2%. 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? million Redfin.com users who searched for homes across more than 100 metro areas. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. over year. In addition, Utahs median listing price is 36% more than homes across the United States. However, as the Federal Reserve Bank started using its economic power to fight back against inflation, which has reached a forty-year high, by increasing interest rates, the Utah housing market is beginning to show signs of a significant slowing down. between 2021-12-31 and 2022-12-31. In its December 2022 monthly report, Realtor.com said its monthly housing data showed a housing market thats continuing to cool, with the number of homes for sale up by 54.7% compared to the same time last year. The median home price has increased from $345,000 in September 2019 to $553,500 in September 2022, with a peak of $577,500 in May 2022, representing a staggering 60.43% increase in 36 months, well above the national average. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. FastExpert partner and Utah real estate agent, Preston Hicks, shares his professional perspective on the Utah housing market. The Utah housing market is following many of the same patterns observed nationwide. They didnt go down.. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. The median price of a home in the United States is currently $518,200. As for interest rates, Wood noted forecasts vary widely, anywhere from 5% to 9%, but he personally expects rates to bounce between 6.5% and 7.5% in 2023. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. 27.7% of homes sold above the asking price. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. He's predicting Utah home prices will drop 9% year over year in 2023. A year from now whoevers right has to shave their beard off.. Along with his love of family, he has a very strong competitive spirit, is passionate about personal development, and truly cares for others. increase. Cache County Housing Market Trends. In addition, the number of homes has increased along with significant population growth. 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. 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. 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. The Utah housing market benefits from the states attractivity, which features a strong economy and job market. Copyright 2023 Deseret News Publishing Company. Will it pop or deflate?, A U.S. housing bubble is brewing. 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. Predictions include price drops, terrible consolidation, but better buyer balance, 2022 was a roller coaster year for the housing market, growing number of experts and firms are predicting U.S. home prices will fall, nations median home price ballooned by over 41%, The great reset of 2022: The year the Fed had no mercy on the housing market, U.S. navigating pandemic housing bubble, Fed chairman says. 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. 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. AirDNA vs. Mashvisor: Which One Is the Better Source of Airbnb Data? Buyers finally have market power. But what about the increase in interest rates? 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. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. In 2022, Redfin itself went through two rounds of layoffs. Or if its little more meaningful declines, a 10% decline, take advantage of those because 10 years from now youll see much better conditions.. 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. Will it pop or deflate?, disagree over how much home prices will decline, Why two housing experts disagree on how much Utah home prices will drop in 2023, Housing market is correcting but Utahs affordability crisis isnt going away. Boating in Utah can be an unmatched experience. 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. Utah faces a shortage of 31,000 homes. In addition, people are moving to Utah because of the family-friendly environment, high-ranking school systems, and endless outdoor activities available along with the National parks. Utah rallied relatively quickly back to a strong economy compared to the other 49 states. 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