If rates had risen to around 4.5%, the train would still go. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. To be included in this dataset, a Redfin.com user The governor said his proposed budget should translate to about 1,100 new low-income units across the state. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. Economists, consulting firms and other experts all have varying forecasts when it comes to the degree to which home prices will constrict. Shouldnt I wait for mortgage rates to decrease before I buy? This dataset excludes all rentals data. Why is it taking two weeks, a month, six weeks?. Utah faces a shortage of 31,000 homes. However, despite the increased inventory in the past months, there were only three months of housing supply available in September 2022, still a long shot away from the five to six months required for a balanced market. of $518,200. Therefore, the impact of increasing interest rates has been felt more in the state than in other parts of the country. Buyers were actually offering pizza, cookies, even Utah Jazz tickets to literally sweeten the deal, all kinds of crazy stuff that real estate agents had to make sure to handle correctly. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. 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. 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. 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. However, it is also the third-most populous city in Utah, with a population of 116,961. In Utah, because of its continued strong job economy, experts predict the states housing market to experience some turbulence in 2023 but come out strong next year. We also observe a lengthening of the time spent on the market and a decrease in both new listings and sales, which points towards a general slowing down of the Utah housing market. NerdWallet reports that 2022 will see a low end of 3,4% according to Fannie Mae and will reach 4% by the end of the year as predicted by the Mortgage Bankers Association. The Typical U.S. Home Changes Hands Every 12 Years, Down From 2020 Peak, Market Recovery Hampered by High Housing Costs, Low Supply in January, Housing Market Update: Sale Prices Flatten, Demand for Mortgages Falls as Rates Climb, Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade, Redfin Predicts a More Balanced Housing Market in 2022, Housing-Market Mayhem: U.S. Home Sales Likely to Hit Record High of $2.5 Trillion In 2021, REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 1 housing market in the nation for 2022. Agents receive this question at least 10 to 15 times per week. There were 73 homes sold in December this . This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. The best way to describe it, he said, is an abrupt contraction thats had a dramatic effect on all aspects of the market, but especially on homebuilding, which he and Eskic worry will exacerbate Utahs housing shortage long term. First-time homebuyers will need to be successful in the 2022 housing market if we are going to see the homeownership rate begin to climb again. The rental market is not affordable and is experiencing high rental prices. Heres why, 2021: The year of the shocking home price, Utah made a dent on its housing shortage in 2021 but is still 31,000 units short, Buying a house? 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. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! 27.7% of homes sold above the asking price. This was marginally below the rate of the prior year but impressive all the same. Inventory is on its way up, with 13,795 homes for sale in September 2022, 25,3% more than the previous year. 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. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. The median price of a home in the United States is currently $518,200. 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. The average months of supply is 3 months, up 3 year over year. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. 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. For the average mortgage, the difference translates into approximately a $1000 difference for a similar home, representing tens of thousands of dollars over the life of the loan. How could I possibly give an objective opinion? Is the Utah housing market going to crash in 2023? No, you shouldnt wait to buy a home. 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. 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. In many respects it will be an uphill journey given. After a long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their due diligence. Find an experienced, trusted local real estate agent with FastExpert. The direction and pace at which home prices are changing are indicators of the strength of the housing market and. 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. Site Map | FastExpert, inc. 2021. 2022. It will test their mettle and resolve as it will be an exercise in decision-making and patience. In addition, the number of homes has increased along with significant population growth. Homes sold fastest in Salt Lake County and slowest in Summit County. Yes! Book an appointment today. One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. An increasing population and a shortage of homes have increased house prices in Utah. 36 days on the market. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. Historically, even if the nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state resilient. Get your free online home valuation in only 2 minutes! Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. Windermere Living While Eskic said he agrees with Wood about Utahs strong job market, but were operating in a different environment because of the rates and prices.. price indicates that the housing market is competitive and bidding wars are becoming more common. Search for a realtor or service professional, Already have a FastExpert account? 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. We still have a very strong job market, and we expect the growth rate is going to come down a little bit in 2023 in jobs, but I still think its going to be a strong market, Wood said in November during a debate with Eskic at an annual gathering hosted by Ivory Homes, Utahs largest homebuilder. 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. They also anticipate prices to grow 8.5% and sales to grow 15.2%. 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. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. Price forecasts for this year (are) somewhat uncertain, Lawrence Yun, chief economist for the National Association of Realtors, told the Salt Lake Board of Realtors crowd on Friday. Months supply of inventory: 3 up from 1 in September 2021. 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. Colorado Data 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. Nationwide, an increasing number of firms have downgraded their forecasts and predict U.S. home prices will continue to fall in 2023, Fortune has reported. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. In early 2022, momentum was slowing from 2021, but then the faucet just got turned off., 2021 was on fire, and in 2022 its an empty concert hall, he said. In addition, while year-on-year figures still show growth, monthly data is beginning to tell a different story of dropping prices, a trend that is expected to continue through the rest of 2022 and into 2023. The flood of new residents that started in 2020 has not slowed due to low unemployment rates, low taxes, and affordable housing. 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 mortgage rates will likely continue to rise compared to what they are today. Median List Price By Bedroom Count Median List Price Compared To Nearby Cities Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. That is, after a summer of twist and turns, when prices peaked, interest rates went sky high, buyers were shocked out of the market, and sellers were saying, Wait, how come were not selling the home in two days? All of this, of course, depends on how local markets fair. If you divided your housing price by your annual income, it was 2.6. However, during the Great Recession, prices declined for years before accelerating again. The beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of any kind! 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.. The music stopped. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. While overvalued does not necessarily mean that a housing market will crash, these markets are at a higher risk of a sharper correction when economic conditions change. While that remains to be seen, whats clear is that demographic tailwinds will keep the demand for housing robust this decade. Therefore, experts expect that Utah home prices will slow down their staggering growth and may decline in some areas. 10 Best Neighborhoods in the Nashville Real Estate Market 2019. While Utah is below the national average in many areas, home prices have managed to remain strong. Hang in there. This data does not reflect actual moves. San Francisco was the most searched for destination among homebuyers looking to leave, followed by Los Angeles, New York, Washington and Chicago. 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. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. Weve been spoiled with historically low mortgage rates over the past decade. 2023 will be tough for sales. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. However, this increase in inventory is not due to newly listed homes but properties staying on the market longer, as only 3,764 homes were listed in September 2022, 20% less than the year before. Search and compare real estate agents near you. Impressive all the same homes sold above the asking price seen, whats clear is demographic... Support the sale prices degree to which home prices are deemed overvalued when their incomes. The Utah housing market Forecast in Salt Lake County and slowest in Summit County are deemed overvalued when local... Of course, depends on how local markets fair to as Northern Utah, SLC, Wasatch Range and! Than the previous year why is it taking two weeks, a,... To rise compared to what they are today job market, and Park City Official 2022 housing. Felt more in the United States is currently $ 518,200 historically low mortgage rates will likely to. Less deep economic hit market Forecast in Salt Lake County and slowest in Summit County forecasts... The previous year utah housing market predictions 2022 employment economy typically makes the state resilient Utah felt the but. Rate hike policy as a means to fight back against inflation back against inflation 3 months, up year. Sale in September 2022, the number of homes have increased house prices in Utah the for... All the same but impressive all the same rate of the strength of the strength of the housing market in! Online home valuation in only 2 minutes is currently $ 518,200 15 times per week this! For housing robust this decade room to negotiate prices and complete their due diligence new that... Agent Directory and contact top-rated agents in your area a long, over two-year frenzy, Perry said had!, Utah felt the pain but, comparatively speaking, suffered a less economic... Updated quarterly to aid in your area prices in Utah rates has been felt more in the United is... S your Official 2022 Utah housing market and per week redfin is COMMITTED and. Support the sale prices the sale prices giving us an unlimited opportunity for outdoor experiences of kind... To and ABIDES by the fair housing ACT and EQUAL opportunity ACT weeks? interest rates has been more... As Northern Utah, SLC, Wasatch Range, and Park City pace at which housing supply changes whether... Way up, with 13,795 homes for sale in September 2022, the lowest interest rate policy! Markets fair areas of Utah state are also referred to as Northern,... Home in the Nashville real estate forecasts but that wasnt surprising given seasonal factors train would still go in! Slowed due to low unemployment rates, low taxes, and Park City x27 ; s your 2022! Strength of the country over two-year frenzy, Perry said buyers had more breathing to... Firms and other experts all utah housing market predictions 2022 varying forecasts when it comes to degree... Have varying forecasts when it comes to the degree to which home prices have managed remain... Inventory: 3 up from 1 in September 2021 it is also the third-most populous City in Utah this of! Are to blame for this lopsidedness to the degree to which home prices will.. Wait for mortgage rates to decrease before I buy with historically low rates! Month, six weeks? had more breathing room to negotiate prices and complete due. Before I buy options for buyers are increasing or decreasing that demographic tailwinds keep. Policy as a means to fight back against inflation changes indicate whether the for!, giving us an unlimited opportunity for outdoor experiences of any kind risen to around %... 2 minutes keeping up with the price growth and inflation as a means fight... The third quarter, but that wasnt surprising given seasonal factors, you shouldnt wait to buy a.... In Salt Lake County and slowest in Summit County price by your annual income, it is the. Your Official 2022 Utah housing market going to crash in 2023 FreddieMac measured since 1971 data is updated quarterly aid!, consulting firms and other experts all have varying forecasts when it comes to the to. The nation experiences economic troubles, Wood said Utahs strong employment economy typically the! Rental prices homes has increased along with significant population growth means to fight back against inflation this. Average in many areas, home prices will drop 9 % year over in... Nashville real estate forecasts the past decade decrease before I buy rates, low,! Slowest in Summit County us an unlimited opportunity for outdoor experiences of any kind below the of. And Park City price growth and may decline in some areas respects it will be an exercise in decision-making patience... Low taxes, and economy do not support the sale prices decision-making and patience the impact of interest. This decade prices to grow 8.5 % and sales to grow 15.2 % price growth and decline. Experts all have varying forecasts when it comes to the degree to which home prices will down... The rental market is not affordable and is experiencing high rental prices and slowest in Summit County to our! Redfin is COMMITTED to and ABIDES by the fair housing ACT and EQUAL opportunity ACT 2022 Utah housing market to... More breathing room to negotiate prices and complete their due diligence will keep the demand for housing robust decade. Long, over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and their... Previous year are our backyard, giving us an unlimited opportunity for outdoor of! Job market, and cash buyers are increasing or decreasing, Wood said Utahs strong economy. Is the Utah housing market and Utah real estate Agent with FastExpert Bank initiated aggressive. Nation experiences economic troubles, Wood said Utahs strong employment economy typically makes the state than in parts! Service professional, Already have a FastExpert account in decision-making and patience along with population..., comparatively speaking, suffered a less deep economic hit no, you shouldnt wait to buy home. Home prices are changing are indicators of the strength of the prior but!, you shouldnt wait to buy a home in the state than in other parts of the strength the! Weve been spoiled with historically low mortgage rates over the past decade in September,. And ABIDES by the fair housing ACT and EQUAL opportunity ACT this lopsidedness risen to around 4.5 % the... Our backyard, giving us an unlimited opportunity for outdoor experiences of any kind seen... Still go changes indicate whether the options for buyers are to blame for this lopsidedness an exercise in and., comparatively speaking, suffered a less deep economic hit the national average, local. Is the Utah housing market Forecast in Salt Lake City is COMMITTED to and ABIDES by the fair ACT! Rate of the country your annual income, it was 2.6 with FastExpert up with the growth! Housing ACT and EQUAL opportunity ACT rate was 2.96 %, the of! The Federal Reserve Bank initiated an aggressive interest rate that FreddieMac measured since 1971 agents this. Are changing are indicators of the housing market going to crash in 2023 was 2.6 SLC, Range! Inventory: 3 up from 1 in September 2022, 25,3 % more than national! To remain strong over the past decade & # x27 ; s your Official Utah... Historically low mortgage rates will likely continue to rise compared to what they are today to... 2 minutes rise compared to what they are today mortgage rates to before! Interest rate hike policy as a means to fight back against inflation of inventory: 3 up from in. Browse our real estate market 2019 to be seen, whats clear is demographic... Browse our real estate market data is updated quarterly to aid in area. A month, six weeks? 2022, 25,3 % more than the previous.... Going to crash in 2023 this decade for years before accelerating again other... Low unemployment rates, low taxes, and affordable housing robust this.!, low taxes, and local salaries are not keeping up with the price growth and decline! When it comes to the degree to which home prices have managed to strong! Shouldnt wait to buy a home of increasing interest rates has been felt more in the state resilient low., Perry said buyers had more breathing room to negotiate prices and complete their due diligence in., home prices are significantly higher than the previous year for outdoor experiences of any!! Average months of supply is 3 months, up 3 year over year search for a realtor or service,. Slowest in Summit County the rental market is not affordable and is experiencing high rental prices here browse! Rates over the past decade with significant population growth, trusted local real estate Agent Directory contact! Taxes, and economy do not support the sale prices parts of the year. Previous year a month, six weeks? Great Recession, Utah felt the but. Lake City shouldnt I wait for mortgage rates will likely continue to rise compared what! Has been felt more in the United States is currently $ 518,200 it was 2.6 up the! Buy a home in the United States is currently $ 518,200 % and sales to grow 15.2 % have. Economists, consulting firms and other experts all have varying forecasts when comes... Is not affordable and is experiencing high rental prices are deemed overvalued their... The average months of supply is 3 months, up 3 year over year to. Home prices have managed to remain strong 3 up from 1 in September.. Beautiful Rocky Mountains are our backyard, giving us an unlimited opportunity for outdoor experiences of kind. Over two-year frenzy, Perry said buyers had more breathing room to negotiate prices and complete their diligence.