Learn about it so that you are aware. It's important to note that these forecasts are based on historical data and trends, and many factors can impact the Utah housing market, including changes in the economy, interest rates, and demographics. Do not sell or share my personal information. 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. A housing market bubble is caused due to unsustainable home prices. Rates rose dramatically in 2022, but I believe that they have now peaked. What Do You Need to Get Preapproved For a Mortgage:Find out how you can get your mortgage approved digitally. 1,260 single family and multi-family homes were sold throughout Salt Lake County in March 22. A majority of people dont know whens the best time to buy a house. Salt Lake City requires landlords to get a business license, even if they own one rental home. 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. Utah market trends and housing statistics. Sell FSBO, Sell your home now! While others believe that due to the higher interest rates, sellers will lower their prices to current levels. The grid from which the entire city is laid out originates at Temple Square, the location of the Salt Lake Temple. People are moving there due to the lower cost of housing, good quality of life, and outdoor recreation. 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. Some of the information contained in this article was pulled from third-party sites mentioned under references. 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. It has had the most rapidly growing job market in the country for the past decade. A real estate agent or broker was used by 86% of buyers to purchase their homes. The DrainageProjects mainly include sanitation, flood from www.pinterest.com. Housing bubble bursts for a variety of reasons. Ogden was third with rent climbing 15.7%. Typical Closing Costs For Buyer in Utah: Find your Closing Costs Obligations. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. Increasing mortgage rates will surely have a major impact on home sales in 2023. In-migration to the Salt Lake metropolitan area is still at an all-time high. Around 16% of Americans have bad credit. As the Fed attempts to control inflation by increasing mortgage rates. Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. Hence, we can say that the real estate market in Utah has seen mixed trends in 2022, with some counties experiencing increases in the median sale price and others seeing decreases. You dont need to time the market when you can get the maximum exposure by listing your property on MLS. A large number of Californians are relocating to Utah, putting extra pressure on the supply side. To summarise, these factors are broadly categorized into 4 key segments. Salt Lake City sits at the intersection of I-80 and I-15. In a slow market, inventory is usually high, and home prices keep decreasing due to lower demand. The personal balance sheets of homeowners today are much stronger than they were 15 years ago. Get the list of best for sale by owner homes in your area. But now your energy and utility bills are sky high and youre looking to move on to bigger and better things. Copyright: 2023 Redfin. . West End Ink is located on 3763 West Andrew Johnson Hwy and is open Tuesday through Friday from 12pm . How To Invest in Real Estate During a Recession? Americans will have a better chance to find a home in 2022, but will still face a competitive seller's market as first-time buyer demand surpasses the inventory recovery, a press release says. Prices will fall, but not to the extent homeowners experienced during the Great Recession. 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. Understanding and dealing with sellers disclosure can be intimidating for home sellers. We run an energy audit where we go through your house and take a look at your bills to get a personalized list of energy recommendations. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. tl. On average, the number of homes sold was down 34.8% year over year and there were 1,765 homes sold in January this year, down 2,708 homes sold in January last year. Employment in the state remains strong, with a jobless rate of 2.2%, the lowest in the nation. 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. Highland Housing Market Forecast and Real Estate Price Prediction:, Highland City Real Estate and Home Value Predictons for 2025. tt. In September, pending home sales fell for the fourth consecutive month, falling month over month by. The median price of a home in the United States is currently $519,300. The Urban Land Institute ranked it the nations third-best market for commercial development in its 2018 Emerging Trends report, fueled in part by the big names relocating here like Goldman Sachs, which now has the fourth-largest office in the world in Salt Lake City. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. Lets take a look at the number of positive things going on in the Salt Lake City real estate market which can help investors who are keen to buy an investment property in this city. The supply of newly constructed houses has yet to return to pre-2007 levels. Park City and the northern side of Oakley have properties that cost on average well over a million dollars. Lenders used to offer mortgages to anyone without doing any prior credit checks or down payments. Mortgage impact: The monthly mortgage payment on the median asking price home also rose to a record high: $2,404 at the current 5.27% mortgage rate, Redfin says. What is the housing market like right now? Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. In general, we can see that the median home price increased from 2021 to 2022, with most counties experiencing a rise. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. Home values are expected to go down by 5% to 10% due to unaffordability. Even while inventory is rising considerably compared to the previous two years, this does not solve a problem that has existed in Utah for years. While there is still a red-hot housing market in Silicon Valley, the state also has the highest poverty levels in the nation. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. Utah Housing Market Overview and Statistics. Experts predict that mortgage rates will continue to climb because of continued inflation, potential recession, and geopolitical tensions. Average time for a house to be on the market is 16 days, though most of the time it sells in the first 5 days. A strong job market and a robust economy have been contributing to the rising housing costs over the past several years. As a result, there are chances that the housing supply will remain low. Multiple options make it easier to get a loan. See the Highland (Utah State, Utah County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. . The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. Let us know which real estate markets in the United States you consider best for real estate investing! What Do You Need to Get Preapproved For a Mortgage, How to Buy a House With Bad Credit in Utah, How Does Buyer Agent Get Paid For Sale By Owner, Best Time of Year to Sell a House in Utah, 12 Best For Sale By Owner Websites in 2023, How To List On MLS For Sale By Owner In 2023, 13 Best Companies That Buy Houses For Cash (2023), Flat Fee MLS: Everything You Need to Know, Americas 10 Best Discount Real Estate Brokers and Companies (2023). Rapid population growth and job growth are the two most important drivers of housing demand in Utah right now. The housing market is a hot topic right now, and after experiencing rapid growth over the pandemic years it looks to now be slowing down. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Home prices, market trends, COVID-19, the suburban boom, Millennials, Gen Z and more as we look . Most economists would agree that a housing bubble does exist. Learn them here. Demographics make it easy to determine what types of real estate properties are in demand. Movoto Real Estate is committed to ensuring accessibility for individuals with disabilities. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. How Buyers and Sellers Can Navigate a Hot Utah Housing Market. Throughout the last decade, Salt Lake City has seen a significant increase in development, from City Creek Center to 111 Main, these and other developments have played a crucial role in improving the vibrancy of downtown. People are also ignoring the appraised value and waiving the inspection fees. It made a decent dent in Utahs housing shortage, but not enough to erase it. It is measured by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. The states economy has proved to be one of the nations best in reemploying workers as officials continued to actively encourage those drawing unemployment benefits to seek work in sectors less damaged by the pandemic. With 19,202 homes sold in Salt Lake County, 2021 saw another record-breaking price rise, and it is expected to continue this year as well. As the mortgage rate decreases, it gets more convenient for the homebuyer to afford a home. Surged mortgage rates and plunged home sales have worried buyers and sellers about the Utah housing market trend 2023. However, Salt Lake City in general is very landlord-friendly. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. It's now the 30th most populated state, with nearly 3.28 million people, according to U.S. Census Bureau data. Know how to get the best deal while selling a house. There is a niche in the Salt Lake City real estate market for large luxury homes, but it is notable for the sheer demand for 4 or more bedrooms in affordable neighborhoods. For the eighth month, existing-home sales declined to an adjusted annual rate of 4.71 million. If the mortgage rates continue to rise and houses stay on the market for longer, the real estate market value will continue to fall. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Based on the data provided by Zillow, here is a forecast for the Utah housing market. 30-Year Fixed Mortgage Rate ranges from 6% to 7.1%. Buyers finally have market power. Home prices may continue to fall but will not be enough to offset the higher interest rate. The top 10 most overvalued housing markets in Arizona are as follows: Heber-Overgaard, AZ 66.7%, Cave Creek, AZ 26.9%, Saddlebrooke, AZ 23.1%, Coolidge, AZ 18.3%, Marana, AZ 13.6%, Fortuna Foothills, AZ 12.3%, New River, AZ 11.2%, Fountain Hills, AZ 11.1%, Litchfield Park, AZ 9.9%, & Peoria, AZ 9.9%. The largest percentage of the city's population falls in the 25 to 39-year-old age group. The median price for a house in Utah in 2021 was $442,200, 24.6% higher than the previous year. Looking for support? Thirty five percent of home purchases made in 2021 were by first time home buyers. The board predicts home prices will continue to climb between 10-12% in 2022. Utah market trends and housing statistics. 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. Prices will fall, but not to the extent homeowners experienced during the Great Recession. A housing market bubble refers to a steep incline in prices with increasing demand and limited supply. According to NeighborhoodScouts data, Salt Lake City real estate appreciated 161.55% over the last ten years, which is an average annual home appreciation rate of 10.09%, putting Salt Lake City in the top 10% nationally for real estate appreciation. If the federal reserve successfully keeps inflation under control and eases up on its impulsive rate increases. Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. They can be fixed, remaining constant over the loan term, or variable, fluctuating with a benchmark interest rate. What is MLS in Real Estate: Everything You Need to Know. Demand is one factor in the equation that determines the price of housing. It also makes the Salt Lake City housing market unusual in the demand for homes with multiple bedrooms suitable for large families. Selling FSBO is more popular and high-tech than ever. A mortgage application is a document submitted to the lender to buy real estate properties. Mortgage rates rose dramatically in 2022 but are expected to trend lower as we move through the year. Companies that buy houses for cash fiercely compete for properties during a hot seller market. Cincinnati's real estate market is on the upswing and looking strong for the foreseeable future. Yes! More people live and work in the downtown area than ever before. There is no way around selling. However, there were a few counties where the median home price decreased from 2021 to 2022, such as Beaver County, where it decreased by 5.7%, and Iron County, where it decreased by 11.4%. In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. An added bonus of an energy efficient house is less noise pollution especially if you live in a big city. Current Housing Market Trend 2022: The national average 30-year fixed mortgage rate is at 6.1% and up 3.2 points year over year.