In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. The median home price has increased from $345,000 in September 2019 to $553,500 in September 2022, with a peak of $577,500 in May 2022, representing a staggering 60.43% increase in 36 months, well above the national average. However, during the Great Recession, prices declined for years before accelerating again. He's predicting Utah home prices will drop 9% year over year in 2023. Rising financing costs will hinder housing demand and we may see home sales cooling. While home prices have decreased about 3% month over month, home prices are up nearly 9% year over year in August. Hang in there. This data does not reflect actual moves. 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. The strong demand and limited supply of home inventory will push against price declines and keep home prices relatively stable over time. There are currently 8,551 residential homes for sale in the United States. But, we had a recession then, Dejan, we had a recession. Thats where it gets tough. West Valley City is assimilated to a suburb of Salt Lake City, but it is also the second most populous city in the state, with 140,230 residents. 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. In June 2020, the median sales price across Utah averaged $363,600 and has now jumped to $580,000. Median home price: $533,500 a 5.6% Y.o.Y. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. It is equally impressive to see that the unemployment rate remained at a very low level even as the state added over 52,400 people to the workforce. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. 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. Join Us Matthew has over 30 years of professional experience both in the U.S. and U.K. 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. If inflation continues to fall, as I expect it will, rates will continue to drop. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. The time to purchase your primary residence is today and has almost always been today. According to him, about half a million Californians browsed the website UtahRealEstate.com in search of property to buy. Do not sell or share my personal information. Like many other housing markets around the country, the Utah housing market has reached new heights during the pandemic as a result of a perfect storm of low inventory, high demand, and interest rates near historic lows. Utah continues to be a light upon a hill to others throughout the States and even worldwide. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. A home is listed for sale in West Jordan on Wednesday, Dec. 21, 2022. So Branca wasnt expecting to buy his dream home. A realty sign at a property in the Salt Lake City on Friday, Jan. 6, 2023. For September of 2022 Utah saw the median sale price remain flat compared to August and is still up almost 6% from 2021. But having price declines is really unusual, Wood said. The West was ground zero for the pandemic housing frenzy and has also been one of the first areas to see home listing prices getting slashed as the market corrects. 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? The party was over. Utah house prices are significantly higher than the national average, and local salaries are not keeping up with the price growth and inflation. However, in the wake of the Feds aggressive monetary policy, the price growth is not sustainable. Joining Good Morning Utah to share what to expect for Utah's housing market for 2022 is Ryan Kirkham with Summit Sotheby's and Utah realestate.com. Both bearded men chuckled, along with laughs and applause from the audience. Homes that sold above list price likely received multiple offers. At an annual rate of 2.6%, this was the slowest pace of growth since the state started recovering jobs post-COVID. Its going to be tough for home builders, Wood said. 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. As of November, that figure was down to $569,000 14% lower than the May peak but still 4% higher than in November of 2021. At the same time, the number of homes sold fell 34.7% and the number of homes for sale rose 81.9%. So far, Utah home prices are still up year over year, but theyve so far fallen over 9% from their peak in May, according to Eskic. We break down our data by county, but we cover major cities in this region including Salt Lake City, West Valley City, Provo, and West Jordan. If you divided your housing price by your annual income, it was 2.6. Additional links: Historical Utah Data Its going to be tough for real estate agents. They also anticipate prices to grow 8.5% and sales to grow 15.2%. The average months of supply is 3 months, up 3 year over year. Utah is expected to continue its rapid growth and will need to see an increase in available housing to accommodate the incoming population. 2.1 months of housing inventory. At the time of the writing, the Utah housing market remains a sellers market as the available inventory is not keeping up with the demand despite an increase in the number of houses for sale and months of housing supply. Preston was born in Provo, Utah, and raised in Spanish Fork, Utah. This dataset excludes all rentals data. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. Utahs housing experts disagree over how much home prices will decline, though they remain confident that 2023 will not bring a full blown, 2007-like crash, and that Utahs strong job economy will still largely insulate it from any negative impacts of a recession. Wasatch County makes its way to our Utah housing market forecast for 2022 because it has attracted big-city folks from San Francisco and New York for relocation. Strong job growth cities like Boise and Salt Lake City are harder to forecast, he said, as affordability issues keep first-time buyers from getting into the market. Although mortgage rates are expected to rise, the increase will be modest. A good indication of the markets strength and inventory is the average number of days properties stay listed. Wood, who has studied Utah's housing market for decades, forecasts that real estate sales will remain steady in 2022 while home prices will rise 10%-12%. 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. Year over year, prices rose in four markets but pulled back in the other three. 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. Prices were 3.7% lower than in the third quarter of 2022. As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. The slate of speakers all sought to help bring clarity to a market that they said has largely been fraught with volatility and uncertainty as mortgage rates, some days hovering around 7%, have squeezed buyers and have brought a rapid end to what had been over two years of a blazing hot market. Inflation is outpacing most salaries, decreasing the value of the dollar. Realtor.com recently named the Salt Lake City region as the expected No. If you ask Branca, 2022 definitely wasnt the year for buyers either. Here are Utahs metropolitan areas with the hottest housing markets for volume. Utah Housing Market Trends Q4 2022 According to the report by Windermere Real Estate Chief Economist Matthew Gardner, the Utah real estate market has experienced a slowdown in the pace of job growth, with the state adding 43,300 jobs over the past 12 months at an annual rate of 2.6%. Key Market Stats for the Utah Housing Market According to September 2022 data, some of the key market stats for the Utah housing market appear as follows: Median home price: $533,500 - a 5.6% Y.o.Y. However, the spike in listing prices, mortgage rates, and rents will somehow be offset as income is also expected to rise. Salt Lake City Real Estate Market Forecast, Salt Lake (Utah state) home price prediction. Terms . 27.7% of homes sold above the asking price. But Wood is more bullish than Eskic. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Overall, Yun has predicted U.S. home sales to fall by 6.8% in 2023 compared to 2022, and he expects home prices to increase only 0.3%, or essentially flatline. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. If they hadnt been so aggressive in 2020 and 2021, wed be talking about unemployment now rather than inflation. He also noted it was really Congress that juiced the economy with so much one-time stimulus money, not the Fed. While the market in Utah is feeling a correction similar to the rest of the Nation, it weathered the 2008 recession relatively well and is expected to maintain a strong housing market. 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. Given the Utah housing market forecast 2022, here are the top real estate markets any wise investor can add to their real estate portfolio. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. #UPDATE firms predicting that U.S. home prices will continue to fall in 2023:@FannieMae@Zondahome@JBREC Zelman & Associates@KPMG@GoldmanSachs@MorganStanley@WellsFargo@MoodysAnalyticsTD Bank@CapEconomics@PantheonMacroAmherstING@RedfinYieldstreet. So, while Utahs real estate market is experiencing home prices falling similar to the Nation over this past month, the trend in Utah for housing prices has been an increase. Major Utah cities covered in this report: These Utah real estate reports, data, forecasts, and market trends are provided for informational use. 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. Focus on the unbelievable increase you have gained over the past 10, 5, or even 2 years! How far will they fall? 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