The UT housing market has been red hot since the pandemic, but it is cooling fast. Utah's job market is robust enough to avoid widespread foreclosures, and housing demand is expected to remain high in 2023 due to the state's rapid expansion and widespread home shortage. According to ATTOM, Illinois had the highest foreclosure rate in August, with one foreclosure filing for every 1,926 housing units. As it becomes easier for buyers to get a loan, the demand consistently increases. According to local real estate agents, there arent enough single-family homes to meet the rising housing demand. Mortgage interest rates touched a record high, and theres a keen decline in the number of home sales at an all-time low of 22.5% Y-O-Y. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. The first and foremost step is to find a medium to sell your house for top dollar. Buying a home might not build equity as quickly as expected. The counties covered by this report added more than 35,000 new jobs over the past year, which was also a growth rate of 2.6%. 1,260 single family and multi-family homes were sold throughout Salt Lake County in March 22. He said over the last five years, home prices have gone up about nine percent each year in. Everyone enjoys their own space, and a growing family often requires more space. Realtor.com expects that Salt Lake City will lead the nation with a 23.7% combined growth in sales and prices in the next year. The average months of supply is 3 months, up 3 year over year. However, sellers can benefit from selling a house if the following factors favor them. Climate change will make homeownership pricier. 2023 Housing Market Predictions and Forecast - Realtor.com Delaware was next, with one out of every 2,387 homes in some stage of foreclosure. In the fourth quarter of 2022, the number of homes sold in the areas covered by the report fell by 45% compared to the same period the previous year and by 27.8% compared to the third quarter of 2022. Below is the latest Utah housing market trends analysis. Financial market participants anticipate the Fed raising its target Fed funds rate by 175 to 200 basis points from current levels. Get the list of best for sale by owner homes in your area. The benefits of an energy efficient house is that youll save substantial amounts on your utility bills. Just 2,778 Utah homes were for sale in February 2022 compared to the 9,000 houses during the same period in 2020. xd. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. 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. Housing aside, another reason why people relocate from the West Coast to Utah is the low cost of living. Know how to sell as is. This is the MOST ACCURATE UTAH Housing Market Forecast for 2022. 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. Salt Lake Real Estate Forecast, Housing Market Prediction: up to 480607 Housing bubble bursts for a variety of reasons. These rates have priced many buyers out of the market as theyre at record highs in more than 20 years. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. People are moving there due to the lower cost of housing, good quality of life, and outdoor recreation. Perhaps you are looking for a slightly different hold-over, an investment property in Salt Lake City that you might move into or sell at retirement in the future. Highland Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Highland? Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. 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. Investors in the Salt Lake City real estate market can buy land to develop or invest in housing projects being built in expectation of workers who will soon move to the area. Current Housing Market Trend 2022: In September 2022, median home prices in Utah were up by 5.6% compared to the last year. Median home value in 2022: $555,014; . It took an average of 55 days to sell a home during the fourth quarter. Idaho ranked #1 in FHFA State House Price Indexes. As more and more families consider sustainable options for cost efficiency and health, making your house more energy efficient will up your resale value and make your house more valuable in the buyers eyes. However, few experts believe that housing inventory will rise as interest rates rise and homes become more unaffordable. Join Us Prices in Utah have blown up so much that over half of Utah residents cannot afford the state's median prices homes. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. The number of mortgage applications received compared to the previous year. Look up here. Based on the data provided by Zillow, here is a forecast for the Utah housing market. Twenty-four of Utahs 29 counties had double-digit gains. Offer financial incentives like covering all closing costs, accepting all inspections, or providing a transferable home warranty. Matthew has over 30 years of professional experience both in the U.S. and U.K. Utah Housing Market (Salt Lake City) Trends & Forecast 2023 Salt Lake City is the number one spot for this years top market list because of its healthy economy and low unemployment rate. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. A housing bubble bursts when demand decreases and supply increases. Housing Market Forecast for February 2023 As we begin to move through 2023, housing experts maintain a watchful eye on the economy, which continues to be pulled in all directions by high. For sellers, now is the perfect time to make sure your current house is the most energy efficient, which means theres adequate insulation, all the lights are LEDs, five-star energy appliances, no air leaks in the windows or doors, and weather stripping around doors and windows are up to date. The median number of days property listings spend on the market in a given geography during the specified month. If you have bills to pay, such as credit card balances, student loans, or asset installments, it is always better to clear them before making a huge commitment. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. Utah currently has one of the highest population growth rates in the US. Buyers finally have market power. Zillow Forecasts a Dip in Home Prices, Rebounding By Next Year Call (801) 948-9499 to Receive a FREE Attic Inspection. As a result, sellers have to lower the prices of their homes. Were standing by to help you take the guesswork out of real estate investing. Asmortgage companies in Utahmake it harder to get a loan, home affordability suffers and reduces the demand. There has been a gradual decline in homebuyer interest. This dataset excludes all rentals data. They can be fixed, remaining constant over the loan term, or variable, fluctuating with a benchmark interest rate. 2021 Housing Market Predictions and Forecast - Realtor.com San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Vernal: Vernal is expected to experience steady growth in the coming years, with gains of up to 1.7% by January 2024. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. 2023 Official UTAH Housing Forecast - Is the UTAH Real Estate Market Your house will be more comfortable for you and your family. All those factors pushed Utah into first place in Bankrates Housing Heat Index for the fourth quarter of 2020. Lenders on a mortgage charge interest rates. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. Filed Under: Growth Markets, Housing Market, Real Estate Investing. Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years March 2, 2023 by Marco Santarelli Housing Market Predictions for Next 5 Years The housing market is a crucial component of the US economy, and predicting its future trends and fluctuations can be difficult, especially as external factors can influence the market. The Salt Lake City real estate market has been one of Millennials' toughest real estate markets due to limited supply relative to demand. Economists believe the housing market will slow down but not crash soon. Redfins data tells us how a typical home sells for less than the asking price. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. In the end, you want to pay the right amount. Experts are expecting real estate values to fall over the . Even if inventory is significantly higher than it has been in the previous two years, it still does not address what has been a problem in Utah for years. More houses were sold in 2020 than in any prior year, putting 2021 on pace to be the second-highest sales year ever. Given the roller-coaster ride inventory has been on lately, it's important to keep historical context . 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. Want to get a net proceeds estimate? Experts predict that mortgage rates will continue to climb because of continued inflation, potential recession, and geopolitical tensions. The Utah housing market starts to slow when the properties supply exceeds the present demand. Meanwhile, renters may see some relief in 2023 as a wave of newly constructed apartments comes online. Bringing it to an all-time low of 26.7% compared to the last year. As per August 2022 data, only a 3.2-month supply is available in the inventory. Here's the current overview of Utah's Listing prices by Counties (source: Realtor.com). Millcreek rent jumped 16.4%, making it second. Check out the following video to understand how Houzeo works and why it is one of the bestFor-Sale-By-Owner Websitesin the U.S. An overview of what the platform is all about. The forecasts center around a baseline prediction of a 4.9% decrease in United States GDP in 2020 and a subsequent 5.7% increase in 2021. In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. If one of these variables is taken out of the equation, the bubble pops. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. Our forecast predicts total inventory to grow by 4.0% in 2022 overall, and by 22.8% in 2023. Despite a temporary lull in early 2020, the market rebounded hotter than ever in 2021. . The data is provided by UtahRealEstate.com, the leading provider of real estate technology in Utah and one of the largest Multiple Listing Services in the United States. After several years of low interest rates, Americans overall will see rates trend up throughout 2022. Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments a nationwide provider of turnkey cash-flow investment property. Home prices may continue to fall but will not be enough to offset the higher interest rate. Even before COVID swept across the world, the Utah housing market was already out of reach for 63% of renter households. Keeping this in mind, Interest rates are still low, which might lure prospective buyers into entering the market. Fees and taxes can vary from one county to another. Other counties saw more modest increases, such as Salt Lake County, which saw a 14.8% increase, and Summit County, which saw a 13% increase. Let us look at the price trends recorded by Zillow over the past few years. Long-term demographic and economic growth has generated rapid increases in housing prices in Salt Lake County. Unless you have plans to downsize, rent, or relocate to a more affordable area, youll only be selling and entering the bubble. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. Ogden: The housing market in Ogden may experience some slight declines over the next year, with decreases of up to 0.5%, followed by a rebound with a 1% increase by January 2024.