It boasts some of the best snow on planet earth! 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. Copyright: 2023 Redfin. 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. 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. However, like we saw during the pandemic housing frenzy, that could all vary depending on the region. 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. With their buying power significantly diminished, house hunters find themselves priced out of the market or may consider postponing their home-buying plans until interest rates return to a more affordable level. Heres why, Why are house prices so high? He has a background in sales and marketing and construction as a Project Superintendent. Other Regional Data. Doing read more, Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! One will often find him drawing, doing toy photography, or dabbling in other geeky stuff when he's not helping investors make smarter decisions. 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. Already have a FastExpert account? Utah remains a sellers market as inventory levels have yet to return to their pre-pandemic levels. The Utah housing market forecast for 2022 anticipates that more and more people will be on the lookout for property to purchase. 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. Peak-to-trough, with the peak 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. So from that affordability perspective, I think its going to keep the market from accelerating back to have a more positive price appreciation., Wood said thats a good point, but added the 70s and early 80s saw interest rates that hit as high as 18%. Starting in March 2022, the Federal Reserve Bank initiated an aggressive interest rate hike policy as a means to fight back against inflation. 1 housing market in the nation for 2022. Connect with an Agent The past 5 years of Utahs housing market have seen an upward trend in housing prices. Imagine earning over $100,000 a year and being qualified to buy a half-million-dollar home but still not being able to swing it. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. I dont think were going to get a recession now, in Utah., Eskic, smiling, said he and Wood should make a bet on stage. Median home price for Salt Lake residents over the last year was $564,062. 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? The number of newly listed homes was 1,954 and up 1.4% year over year. Year over year, prices rose in four markets but pulled back in the other three. No, you shouldnt wait to buy a home. This gives us a 23.7% combined overall growth rate This projected growth puts them ahead of other booming markets like Boise City ID, Spokane WA, and Indianapolis IN. But by the end of the year, well stabilize and well be flat, Wood said. 2022's housing market follows Utah's hottest housing year ever . Search for a realtor or service professional, Already have a FastExpert account? Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. 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. Terms . 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. My current forecast is that mortgage rates will trend lower as we move through the year. Each year, the Sal. The Midwest, he said, will likely see minimal price increases.. However, as the level of Utah housing prices outstripped the national average, the demand is bound to decline as salaries are not increasing nearly as fast as property prices. John Burns Real Estate Consulting now expects U.S. home prices to fall 20% to 22%. The competition has been made even tougher since the pandemic started, with people from California and Colorado making their exodus to the Beehive State in search of more affordable housing along with a good educational system and a lower cost of living. The good news for buyers who are prepared to take on high mortgage rates is that they no longer face the fierce competition of early 2022. The Utah housing market is amid a major shift. The 2021 Utah housing market will be long remembered for its record-breaking price increases. 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. Families flourish in Utah. Copyright 2023 Deseret News Publishing Company. Housing market predictions for 2023 vary, depending on the regional market and who you talk to, but no one is predicting a stellar year for buyers or sellers and certainly not for homebuilders. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. Even during the 2008 Recession, Utah felt the pain but, comparatively speaking, suffered a less deep economic hit. Winter sports are a highlight in Utah. Median home price: $533,500 a 5.6% Y.o.Y. 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. However, there is no denying that the rapid increase in interest rates, with more likely in the work before inflation reaches a targeted rate of 2%, has significantly affected it. Median List Price By Bedroom Count Median List Price Compared To Nearby Cities Rates rose dramatically in 2022, but I believe that they have now peaked. So players should expect to see both challenges and opportunities in 2022. However, the sale volume has decreased significantly in the past year, with 3,219 houses sold in September 2021, representing a 26.7% decline in year-over-year comparisons. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. The migration during the Pandemic contributed to the increased demand in the Utah housing market and an increase in housing prices. Alfred is a content writer with years of experience writing about the US housing market. That was also a time when the national economy and Utah faced a struggling job market, Wood noted. Utah will see minor year-over-year price declines in the first and second quarter of 2023, but prices will begin to stabilize by the third and fourth quarter, he said. They say it will pose challenges, especially for homebuilders, but also rebalance a market thats priced some two-thirds of Utahns out of affording the median priced home. If 2022 was a roller coaster year for the housing market, 2023 is expected to bring a painful but necessary real estate hangover. The jarring pace of Utah's housing market and its impact on Utahns "is why we think these investments are so important," Cox said. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Once the market rebounds, buyers can be in an even more powerful position when the market shifts back to a more lopsided sellers market. Looking ahead to 2023 and what it will bring to the housing market, two of Utahs leading housing experts are respectfully disagreeing with each other. 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. 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. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. shattering the 43-year-old record of 20.1% set in 1978," wrote James Wood in the 2022 Housing Forecast Executive Report. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. If you ask Branca, 2022 definitely wasnt the year for buyers either. 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. A high or growing percentage of homes selling above list. million Redfin.com users who searched for homes across more than 100 metro areas. Utah has had quite a long history of rapid acceleration where house prices are concerned. How the pandemic housing frenzy which drove housing prices up to unimaginable levels in 2021 and into early 2022, especially in Western states like Idaho and Utah came to a grinding halt mid year, and the market crashed down to reality. Over the past 12 months, the state added 43,300 jobs. 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. Right now, its close to 5. 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.. 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