Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. Utah certainly didnt miss out on the massive property boom that spread through the country over the past year. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. Once the market rebounds, buyers can be in an even more powerful position when the market shifts back to a more lopsided sellers market. Here are their year-over-year predictions for the Salt Lake City housing market in 2022: Forecasted home sales change: +15.2%. But what about the increase in interest rates? Other Regional Data. Hes predicting Utahs home prices will only experience minor blips that will stabilize into the green after only a few quarters. After the next seven months, the median price. 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. Heres why, Buying a house? The Utah housing market has experienced consistent growth in real estate throughout the past five years, but it started to take off in mid-2020. Lake Powell can drop your jaw around every bend of the gorgeous reservoir with 200-foot cliffs. The average rate for 2022, based on the forecasts of seven organization . By comparison, interest rates 20 years ago averaged between 6%-7%, and 1981 experienced interest rates of 16%. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. So unless we have a real serious recession, I think prices have some support given our economy., Wood also said even if home prices dropped 10%, they wouldnt set off a wave of foreclosures, unlike what happened in 2008, which just pulled prices down. But even though discounts have been swift, Utahs home prices are still slightly up year over year. With the low amount of inventory, sellers will continue to enjoy multiple offers, with some buyers willing to fork over way above market price to beat out other potential buyers. 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. The rental market is not affordable and is experiencing high rental prices. 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. So unless we have a real serious recession, I think prices have some support given our economy.. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. The latest migration analysis is based on a sample of about two 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. Branca said hes struck by how wild todays home buying reality is. The housing market in West Jordan is competitive, with the average listed property receiving five offers and selling within 27 days on the market. Some, however, say the market needs this correction to reach a more healthy equilibrium between sellers and buyers as well as healthier affordability. Realtor.com anticipates Salt Lake City metro home-price growth will be at 8.5% and home-sales growth at 15.2% in 2022. Sign In. Buying read more, FastExpert, Inc is a California Licensed Broker. No, you shouldnt wait to buy a home. Over the past 12 months, the state added 43,300 jobs. It took an average of 55 days to sell a home during the fourth quarter. 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. When he thinks about what his parents life was like in the same window of time in their lives, he said it blows his mind. If one were to understand what the Utah housing market forecast 2022 is implying here is that renters are facing bigger challenges of acquiring their own properties. How much do homes in Saint George, UT cost? This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. Inflation is outpacing most salaries, decreasing the value of the dollar. Utahs economy continues to add jobs, but the pace of growth has started to slow. Historically, brief and prolonged price declines in Utah went hand in hand with joblessness and recessions, both of which dont seem likely in the next two to three years. 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. Please check your email to verify your account. There are currently 8,551 residential homes for sale in the United States. 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. The Utah housing market is amid a major shift. 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. 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. It boasts some of the best snow on planet earth! Like Salt Lake City, the West Valley City housing market is competitive, with listed properties receiving four offers on average and selling after 41 days on the market. The home was 2,500 square feet, four bedrooms, two and a half bathrooms, sat on a quarter acre lot, and they lived well within their means on a $1,000 a month mortgage payment. The lights shut off. If you would like to buy a house in this dynamic state, the best time to house hunt is in the early spring (April) when inventory is at its highest in preparation for the hot summer real estate market, and Utah house prices are at their lowest. Its more likely that as mortgage rates continue to decline, the market will find a solid floor in the summer and prices will resume their upward trend as we move into the fall. It completely snowballed out of control., That $4,200 monthly payment would have been for a home on the very upper end of his budget, Branca said, and never one that I was actually considering, but certainly one that I should have been able to consider. In 2022, that was Joseph Brancas reality, along with plenty of other Utahns who wanted to join the mad dash to homeownership, but ultimately ended up walking away. 30-year mortgage rate: 5.59000%. While Utah is below the national average in many areas, home prices have managed to remain strong. Compass announced a third round of layoffs on Thursday, according to The Real Deal. Browse through the largest marketplace of Real Estate professionals, We have an in-house team that will guide you through the process. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. Months supply of inventory: 3 - up from 1 in September 2021. They climbed up so high so fast. 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. There was a 98.0% sale-to-list price, down 2.7 points year over year. If you divided your housing price by your annual income, it was 2.6. The bull market that has been in place for quite some time appears to have lost its momentum. Utah faces a shortage of 31,000 homes. Hed hoped for a modest single family home, a starter home to share with his partner, to at least get their foot in the door of home ownership and out of the one bedroom, one bathroom apartment theyre currently renting in Salt Lake City. Even with todays rising mortgage rates, it will continue to be the time to buy a house in Utah. The cops came and busted everyone.. 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. Along with his love of family, he has a very strong competitive spirit, is passionate about personal development, and truly cares for others. Look at housing prices, they were sticky. 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. Scotty Fletcher, left, and his partner Joseph Branca hang out in their living room in the apartment they rent in Salt Lake City on Thursday, Dec. 29, 2022. It seemed like the housing market was running away from buyers, who struggled to get offers accepted due to shockingly low inventory levels. 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. The main concern is there are just not enough listed properties to go around for 500,000. Mashvisor is a website that offers real estate investors access to several tools and a wide range of updated and accurate data to help make the process of finding a suitable investment property faster and easier. 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. With a $105,000 annual income, Branca said he was approved to buy a $550,000 home. After a peak of the housing market in May 2022, when the Utah median home price reached a record $577,500, Utah house prices have slowly been decreasing, although they remain higher than they were the year prior. Three of the top ten most overvalued US housing markets are in Utah. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. Peak-to-trough, with the peak being May 2022 , he expects prices to decline by a percentage somewhere in the. Colorado Data Even with the recent slowdown, a correctly priced home will sell, and it will sell with record equity growth over the last 10-year average. Click here to browse our Real Estate Agent Directory and contact top-rated agents in your area! If 2022 was a roller coaster year for the housing market, 2023 is expected to bring a painful but necessary real estate hangover. Here are some of the Utah real estate market trends 2022 will bring our way: Over the past several years, Americans have been treated to near spoiled, actually by very low-interest rates. 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. Now, 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. Where do we go from here? Utah hosted the 2002 Winter games, and Utah is looking to once again host these games once again. increase. He noted in the early 1980s there were a few (quarterly) periods where prices actually declined before hitting a positive trajectory soon after. Oakland Real Estate Market: To Invest or Not to Invest? What is the housing market like in Cache County today? Love hunting, fishing, or anything outdoors? 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. RELATED: 'It's daunting:' How housing costs are affecting Utah's ski resort staff Listing prices, rents, and mortgage rates are all expected to climb while income rises. 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