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. The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. Despite the expensive prices, the inventory cannot keep up with the growth pace. According to data collected in September 2022, the latest available at the time of writing, the median sale price for a house in Utah stood at $533,500, representing a 5.6% increase compared to September 2021. He graduated from Spanish Fork High School. Right now, the continued rise in both mortgage rates and home price have kept many out of the housing market. The average sale price in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. In January 2023, there were 8,551 homes for sale in Utah, up 81.9% year over year.The number of newly listed homes was 1,954 and up 1.4% year over year. Therefore, the Utah housing market is to be expected to slow down. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Moodys Analytics expects a peak-to-trough U.S. home price decline of 10% or a 15% to 20% decline if a recession hits. While 2021 was the year of the shocking home price, 2022 was the year of the reset, said Steve Perry, president of the Salt Lake Board of Realtors. Should You Invest in the Phoenix Housing Market in 2020? The Midwest, he said, will likely see minimal price increases.. 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. 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. Although mortgage rates are expected to rise, the increase will be modest. Join Us However, during the Great Recession, prices declined for years before accelerating again. Is the Utah housing market going to crash in 2023? 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. Utah continues to be a light upon a hill to others throughout the States and even worldwide. The Utah housing market does not yet significantly favor home buyers but, given the data discussed in this report, it has certainly shifted away from sellers and into neutral territory. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. 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. Please check your email to verify your account. 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? Although demand has softened compared to last year, pushing home price growth into single-digit territory for the first time in 12 months, moderation in home price growth may encourage more buyers to return to the market in the months ahead, and may also be welcome news for sellers aiming to sell and buy at the same time., Copyright 2023 Deseret News Publishing Company. So unless we have a real serious recession, I think prices have some support given our economy.. 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. Additionally. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. 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? Median home price: $533,500 a 5.6% Y.o.Y. The rental market is not affordable and is experiencing high rental prices. So Branca said he made the decision to back out of the market, hoping to maybe consider buying again when interest rates and potentially prices come down. Yun has said the margin of price declines will likely depend on the region. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.. After prices peaked in May, Salt Lake Countys median single family home price hit $650,000. 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. 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. AirDNA vs. Mashvisor: Which One Is the Better Source of Airbnb Data? Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. The median days on the market was 70 days, up 47 year over year., The direction and pace at which home prices are changing are indicators of the strength of the housing market andwhether homes are becoming more or less affordable. 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. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 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. over year. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. 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. 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. Hes employed as a professional actor and director of marketing and advertising at Hale Center Theater Orem, as well as director of communications at the Salt Lake Acting Company. 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. However, because of the stiff competition, Utahns who are looking to buy property should prepare themselves not just financially and physically but also mentally. Even this far into 2022 with the mortgage rate hikes, Utah remains one of the hottest markets. Meanwhile, new home construction. Eskic, however, is predicting Utah home prices will drop 9% year over year in 2023. Once the Fed slows inflation by continued interest rate hikes, they will have to ease the tightening by making money more affordable and accessible. Rising financing costs will hinder housing demand and we may see home sales cooling. These numbers are nothing to worry about, as they indicate a return to a more balanced housing market in Utah. After seven years of Salt Lake County sales averaging 18,000 homes, the high prices of 2023 will mean sales will not top 13,000, he predicted, and likely range between 11,000 to 12,000. Realtor.com has predicted that the Salt Lake City region will be the top housing market in the country for the year with an anticipated price and sales growth of 8.5% and 15.2% respectively. Some buy-and-hold while others enter the rental market for passive income. And to Branca, that meant home ownership became completely inaccessible.. 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. Heres what volatile mortgage rates are doing to your purchasing power, Utah housing prices down from spring peak but theyre still higher than last 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. 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%. Sign up now for a free 7-day trial and get 15% off on your subscription. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. I call it the great debate, Ivory said. Listing activity fell 8.3% from the third quarter, but that wasnt surprising given seasonal factors. Homes that sold above list price likely received multiple offers. By Eskics calculations, 79% of Utah households couldnt afford the states median priced home as of the third quarter of 2022. Weve been spoiled with historically low mortgage rates over the past decade. Historically low-interest rates, job growth, and pandemic conditions made Utah a highly attractive state for both homebuyers and investors. To Eskic, 2022 was the year of the Fed. In his mind, it was a federal miscalculation to raise borrowing rates so high and so fast after two runaway years. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. 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. Each year, the Sal. Woods research colleague at the Kem C. Gardner Institute , Dejan Eskic, is more bearish, predicting Utah home prices will drop 9% year over year in 2023. Matthew has over 30 years of professional experience both in the U.S. and U.K. The median price of a home in the United States is currently $518,200. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. South Carolina Housing Market 2023 Report, North Carolina Housing Market 2023 Report. 28.7% of homes sold above the asking price, reaching a median sale price of $525,000, which represents a 7.8% increase in the past year. In January 2023, home prices in Utah were down 3.0% compared to last year, selling for a median priceof $518,200. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. But now, those days of wild buyer demand and a frenzy of seller activity is over, and real estate agents outnumber active listings. 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. Of all the major U.S. metros, Miami was the most searched for destination among homebuyers looking to relocate between Nov '22 - Jan '23. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 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. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Heres why, Why are house prices so high? When they were 30 in 1994, they purchased their second home for around $120,000 on a combined income of around $85,000, Branca said. So hire an experienced top-producing agent to help you price, market, and negotiate the best deal possible. If inflation continues to fall, as I expect it will, rates will continue to drop. Thats where it gets tough. These factors positioned Utah in the top spot on the Bankrate Housing Heat Index. Next came Sacramento, Las Vegas, Phoenix, and Tampa. 2.1 months of housing inventory. 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. With rates hitting record lows of 2%, things are about to change in 2022 as recent trends on 30-year fixed mortgages have already come very close to 3%. Price growth rates, especially in 2021, were nothing short of astounding. But housing costs werent nearly as high back then, Eskic interjected. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. 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