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. Carbon County has the least expensive housing market in Utah with a median price of $184,000. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. The Salt Lake City housing market cant keep up with demand, and this is pushing many Millennials and new residents into the rental market. Provo: Similar to Ogden, Provo may experience some slight declines over the next year, with decreases of up to 0.4%, followed by a modest recovery with a 0.4% increase by January 2024. The median sales price of a single-family home in the county has increased from $378,500 in 2020 to $460,000 in 2021, an average annual growth rate of 21.5%. Median listing prices were 3.6% lower than in the third quarter of 2022, suggesting that higher financing costs may have created a price ceiling. Like the rest of the state, Salt Lake City Downtown is benefiting from the regions healthy economy. Utah currently has one of the highest population growth rates in the US. As you move up Highway 80 toward Hoytsville and Wanship, properties routinely cost more than a million dollars despite the hour commute to Salt Lake City. Jose Aguilar with West End Ink is Hamblen County's best tattoo artist in People's Choice 2022. You must be thinking about selling your home. However, it depends on the location. 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. Buyers need to be prepared to go above and beyond to get the house of their dreams. At the same time, housing inventory has increased by 78% in the past 12 months alone. Utah's home values increased by 15.39% in the 12-month period that ended Dec. 31, third-best among U.S. states, according to the Federal Housing Finance Agency. The median selling price was $525,000 for single-family homes, up 1.9% year-over-year. Home prices have been steadily rising for the last two years. whether homes are becoming more or less affordable. Utah is facing a dire shortage of affordable homes for sale and for rent, which is likely to be among the dominant issues of the 2023 Utah Legislature. Before the 2008 housing market crash, the housing supply or inventory peaked at a 13-month supply. Rapid population growth and job growth are the two most important drivers of housing demand in Utah right now. All those factors pushed Utah into first place in Bankrates Housing Heat Index for the fourth quarter of 2020. Increasing mortgage rates will surely have a major impact on home sales in 2023. The Future Of Homebuying: Three Predictions For 2025 More From Forbes Feb 11, 2023,11:26pm EST Jennifer Lopez Lists Sprawling Bel-Air Estate For $42.5 Million Feb 10, 2023,06:25pm EST More. About Us How Much Does Home Staging Cost: Home sellers spend $755 $2,844 on home staging. The personal balance sheets of homeowners are much stronger today than they were 15 years ago, which is a clear difference between now and then. The Baltimore real estate market is promising and shows a new increase of opportunities for both buyers and sellers. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. 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. The number of homes sold also decreased in most counties. Realtor.com recently named the Salt Lake City region as the expected No. Laguna Niguel, CA 92677, Copyright 2018 Norada Real Estate Investments, The Utah real estate market saw mixed trends in 2022, according to the. Learn what happens to the Utah housing market during a recession. Sellers will need to have their homes looking better than ever before to attract the best of the best. The Utah real estate market saw mixed trends in 2022, according to the data provided by the Utah Association of REALTORS. Theres a slight hope that inflationary pressure eases and mortgage rates fall next year, such that buyers may feel less pressure. Understanding and dealing with sellers disclosure can be intimidating for home sellers. This explains why Salt Lake City has some of the fastest-growing rents in the country. Salt Lake City saw rent increase 3.8%, making it third. Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. Cincinnati's real estate market is on the upswing and looking strong for the foreseeable future. Economists believe the UT housing market will slow down but not crash soon. Rich Sarkis. The 2021 Utah housing market will be long remembered for its record-breaking price increases. So many California tech firms have relocated to Salt Lake City that the area is now nicknamed Silicon Slopes. tw votes Vote Now 1. cw. See median list price, median house size, median $/Sqft and inventory. Tonya Basset, head of Homies buy side agent team doesnt believe that Utah is in a housing bubble, and hesitates to call it a bubble not wanting to give people bad flashbacks to the housing market crash of 2008. tn votes Vote Now The 10-year ARM (adjustable rate mortgage) was at 4. ix. In December, prices were up 24%, just slightly below the largest gain of 27% in June and theres no sign yet of a slowdown. 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. The same can be said about the Salt Lake County real estate market. Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. Home listings will no longer go out of inventory at a faster pace. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Where there are currently good-paying jobs, new residents are sure to move in. Utahs economy progressed through 2021. A typical homebuyer financed 94% of the home price. As a result, finding a dream house in this market is challenging for buyers, making it extremely competitive. This is a 15% increase compared to the previous year. The strength of the overall economy significantly impacts the real estate market as buyers' ability to support housing prices largely depends on key economic factors. Listing on MLS is the best way to sell a house. All information presented should be independently verified through the references given below. Theyre chasing businesses out of the state through oppressive regulation and high taxes. Ogden was third with rent climbing 15.7%. Hence, we can say that the real estate market in Utah has seen mixed trends in 2022, with some counties experiencing increases in the median sale price and others seeing decreases. In general, we can see that the median home price increased from 2021 to 2022, with most counties experiencing a rise. 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You will reduce your carbon footprint and your water consumption. uu. If you are looking for an affordable real estate market with a high potential for return on investment, you should consider Salt Lake City in 2021. The 2023 Official UTAH Housing Forecast in Salt Lake City. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. Based on Redfin calculations of home data from MLS and/or public records. In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. Want to sell a distressed property? 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. Selling your house wont happen in a day, and in the current market youll be hard pressed to find another house in the time it takes to sell your house so be patient and take your time to make those home improvements the absolute best and go ahead and enjoy those improvements while youre at it. 16% of respondents said now is a good time to buy a house. In fact, the $400,000 house in Utah with four bedrooms and a yard looks cheap when you sold a two-bedroom condo for 50% more than that in California. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. In September 2022, the inventory of unsold existing homes stood at 3.2 months. People are also ignoring the appraised value and waiving the inspection fees. Utah's employment landscape is also one of the most impressive in the country. It's now the 30th most populated state, with nearly 3.28 million people, according to U.S. Census Bureau data. Nearly half of all jobs in the state and 40% of the states population are located in Salt Lake County. Lowering your debt-to-income ratio will help you easily qualify for a mortgage preapproval when applying for a loan. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. The report also shows that home builders in Utah have pulled back significantly on their hectic pace of housing starts and new development. This puts constant pressure on the Salt Lake City real estate market. As a result, the monthly mortgage payment will remain high, and homes may look less affordable. The city is already home to many new startups. Rates rose dramatically in 2022, but I believe that they have now peaked. To be included in this dataset, a Redfin.com user The fees that you are required to pay as part of the rental program depend on how well-maintained the units are. If inflation continues to fall, as I expect it will, rates will continue to drop. Median home value in 2022: $555,014; . Utah housing market forecast 2025. Home prices in Utah were down 2.8% year-over-year in January. What Do You Need to Get Preapproved For a Mortgage, How to Buy a House With Bad Credit in Utah, How Does Buyer Agent Get Paid For Sale By Owner, Best Time of Year to Sell a House in Utah, 12 Best For Sale By Owner Websites in 2023, How To List On MLS For Sale By Owner In 2023, 13 Best Companies That Buy Houses For Cash (2023), Flat Fee MLS: Everything You Need to Know, Americas 10 Best Discount Real Estate Brokers and Companies (2023). Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose 0.8%. What Do You Need to Get Preapproved For a Mortgage:Find out how you can get your mortgage approved digitally. When looking at the current housing market, you see that Utah is among the top states in the West and nationwide experiencing record-breaking housing price increases. Realtor.com predicts that Salt Lake Citys median sale prices will rise 8.5% in 2022. No. Do you sell your house and lose everything youve put into it? However, it largely depends on the location and the number of rooms you want to stage. As a result, there is no threat of a foreclosure crisis. Know how to get the best deal while selling a house. Also, the supply-demand curve indicates that prices wont crash shortly. Sorry, the comment form is closed at this time. Here's the current overview of Utah's Listing prices by Counties (source: Realtor.com). The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. If you are using a screen reader, or having trouble reading this website, please call Redfin Customer Support for help at 1-844-759-7732. Draper was the most expensive city with one-bedrooms priced at $1,500 while Cedar City ranked as the most affordable city with one-bedrooms priced at $520. A slow Utah real estate market may force buyers to refinance their new homes. When we look at year-to-date median home prices for 2021 and 2022, we can see that most counties also experienced an increase in median home prices. Still, you can manage to buy a house and get a better deal. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Utah housing market forecast 2025. Buyer Closing Cost Calculator:Evaluate the approximate closing costs for buyers in your area. Buyers finally have market power. In the latest quarter tracked by them (2022 Q1 2022 Q2) Salt Lake City appreciation rates were at 4.02%, which equates to an annual appreciation rate of 17.06%. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. After several years of low interest rates, Americans overall will see rates trend up throughout 2022. It provides many opportunities to investors, regardless of the market you want to invest in. A typical mortgage borrower has excellent credit, substantial equity, and a fixed-rate mortgage with a rate well below 5%. Here are the key takeaways from the data: Looking at the median home prices for Utah, we can see that there are some variations across the different counties. This, combined with higher mortgage rates, likely impacted sales in the fourth quarter. Park City Data Thus, home prices rise. A generation of millennials in their late 20s and early 30s are coming of age and getting ready to buy their first house. Since 1991 Q1, HPI for Utah has increased by 414.95%. Recent sellers typically received 100% of the listing price, and 38% reported lowering the asking price at least once. Mortgage rates rose dramatically in 2022 but are expected to trend lower as we move through the year. The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. In January 2023, there were 8,545 homes for sale in Utah, up 82.5% year over year.The number of newly listed homes was 1,952 and up 1.8% year over year. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Also, get secure & powerful listing using Houzeo Mobile App. Energy efficiency is about more than just using less energy, it involves making the most of what you do you use and avoiding waste. Whether youve decided to upsize or downsize to live in a low-maintenance home. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. Homes that sold above list price likely received multiple offers. 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. Some experts predict that due to low inventory, home prices wont drop in 2023. However, few experts believe that housing inventory will rise as interest rates rise and homes become more unaffordable. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. The benefits of an energy efficient house is that youll save substantial amounts on your utility bills. A subtle issue hitting Utah is the relative shortage of skilled building trade talent despite the influx of people coming to work in business and tech. In 2021, the median price of homes sold in Salt Lake County increased by 22% from $378,250 in 2020. Highland Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Highland? Idaho ranked #1 in FHFA State House Price Indexes. Interest rates and home prices share an inverse relationship. NEED MORE CLARITY? Hes also the host of the top-ratedpodcastPassive Real Estate Investing. A few sellers are still in a dilemma considering the slow market, high inventory, decreasing home prices, and increasing mortgage rates. The state's unemployment rate stood at 2.2% in November 2022, marginally below the prior year's rate. Salt Lake City is the largest city in the state of Utah, though it tends to be overlooked by real estate investors as just another part of a flyover country. If you are going to price your home high, there are chances that you may detract potential buyers. But according to local real estate experts and representatives from the Downtown Alliance, despite the boom, the supply in downtown Salt Lake City isnt catching up to the demand, and more development is needed in the citys central business district to accommodate the growing demand for housing and office space. And right now, Utah is down to about four weeks of supply of homes. List your property on MLS for the best results. Meanwhile, renters may see some relief in 2023 as a wave of newly constructed apartments comes online. The pricing momentum will weaken, but another year of double-digit increases is possible; expect a 10% to 12% increase, resulting in an additional $50 million in commissions. The bubble pops up when the equation is reversed. Yes! We can help you succeed by minimizing risk and maximizing the profitability of your investment property inSalt Lake City. We are continuously . They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. The Salt Lake City real estate market has been one of Millennials' toughest real estate markets due to limited supply relative to demand. The supply of newly constructed houses has yet to return to pre-2007 levels. It is measured by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. Salt Lake City is a moderately walkable city with a population of. A large number of Californians are relocating to Utah, putting extra pressure on the supply side. 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. The very low crime rate in Utah compared to surrounding states is merely a bonus. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. Dejan Eskic wouldnt say Utah is in a housing bubble either, instead he explains that Utah has a large demographic of 20 to 30 year olds ready to get out and live their life which is why Utah is seeing this housing shortage at the moment. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. A record 56% of homes sold above asking price during the four-week period ending May 1, up from 47% a year earlier, Redfin says. The first and foremost step is to find a medium to sell your house for top dollar. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. The best time to sell a house is when youre ready to move. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary. Copyright: 2023 Redfin. Based on the data provided by Zillow, here is a forecast for the Utah housing market. 60% of workers who switched jobs last year earned more money in their new positions, beating inflation. Utah market trends and housing statistics. People have flocked to Utah especially for the steady stream of STEM related fields of work available. 89% of Buyers said they would go with their real estate agent again or recommend them to others. Utah Housing Market Forecast 2023 Utah's housing market has boomed during the pandemic, and Utah has emerged as a particularly desirable market. 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. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. Supply surges when builders continue to build, irrespective of the lowering demand for houses. Utah Housing Market Overview and Statistics. approximately 186,419 people. The Baltimore real estate market around the new industrial parks built to cater to Amazon will boom because we can expect as many jobs from Amazons suppliers in those areas as Amazon itself and those workers will want to live close to work. According to the September Redfin data, the seasonally adjusted total figure for 2022 decreased from 6.49 million in January to 5.1 million in September. We imagine that youve put years into your house making it into your dream home. Movoto Real Estate is committed to ensuring accessibility for individuals with disabilities. Utah market trends and housing statistics. Over the past 12 months, the state added 43,300 jobs. tl. A closing costs calculator for buyers gives you an estimate of your closing costs while buying a house after deducting local closing costs. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. Fair Market Value: Want to know what is fair market value and how is it calculated? The Utah one bedroom median rent was $1,291 last month. You must make the deal look more attractive to sell your house in a slow 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. Inventory or Homes for sale refers to the number of unsold residential and commercial real estate units. It is a sellers market in Utah as the housing supply can't satisfy demand, which will drive prices to increase further even in the face of rising mortgage rates. 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. Economists believe the housing market will slow down but not crash soon. Home prices may continue to fall but will not be enough to offset the higher interest rate. Carbon County has the least expensive housing market in Utah with a median price of $184,000. According to Walletinvestor's Salt Lake real estate market research, home values will decrease in the next 12 months. Some experts expect prices to decline in 2023, depending on what happens with interest rates in 2023. Current Housing Market Trend 2022: In September 2022, median home prices in Utah were up by 5.6% compared to the last year. Fees and taxes can vary from one county to another. They can be fixed, remaining constant over the loan term, or variable, fluctuating with a benchmark interest rate. If inflation rises, there will be less consumer spending, leading . xd. In September, pending home sales fell for the fourth consecutive month, falling month over month by. However, rates will still be higher than what homebuyers have become accustomed to. Companies that buy houses for cash fiercely compete for properties during a hot seller market. 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. However, Salt Lake City in general is very landlord-friendly. All rights reserved. Want to get a net proceeds estimate? There has been a gradual decline in homebuyer interest. Let us look at the price trends recorded by Zillow over the past few years. Sales decreased 23.8% from the prior year and 1.5% from August. That's a new high and a 28% jump from the median price of $430,000 in the same time period from 2020. As the Fed attempts to control inflation by increasing mortgage rates. Remember, caveat emptor still applies when buying a property anywhere. A list price in real estate is the price of a house for sale determined by the seller and her listing agent. of $519,300. There are currently 8,545 residential homes for sale in the United States.. Salt Lake City is a moderately walkable city with a population of approximately 186,419 people. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. Theyre also willing to waive inspection fees and ignore the banks appraised value of the house. All in all, we believe that you should analyze your homes weak spots and invest in energy efficiency before you think about selling. Realtor.com has revealed their housing forecast for 2022 and they anticipate an energetic year ahead for buyers, especially first-timers. Even though homebuilding soared in Utah in 2021, putting the state on the national map for its housing boom. If youre not planning to stay in the real estate property for a long time, do not buy it. 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. Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isnt the only upscale market in the area. NORADA REAL ESTATE INVESTMENTShas extensive experience investing in turnkey real estate and cash-flow properties. Current Housing Market Trend 2022: Mortgage applications were 41% lower than a year ago. So what makes Salt Lake City Downtown so appealing to home buyers and investors? Throughout the last decade, Salt Lake City has seen a significant increase in development, from City Creek Center to 111 Main, these and other developments have played a crucial role in improving the vibrancy of downtown. TREC:Info About Brokerage Services,Consumer Protection Notice. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 3,051 homes were sold in Utah in January 2022, down 7.2% for January 2021. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. Salt Lake City has a track record of being one of the best long-term real estate investments in the U.S. Lets take a look at the number of positive things going on in the Salt Lake City real estate market which can help investors who are keen to buy an investment property in this city. Several parameters affect the real estate housing market Utah prices. Lenders today place high standards on borrowers, and most who get mortgages have excellent credit. The Salt Lake City area's economy is doing well, and it has one of the lowest unemployment rates in the U.S. Utahs employment outlook during the pandemic continued to outperform the rest of the country. Since 1996, housing prices in Salt Lake County have increased at an average annual rate of 5.1%. We run an energy audit where we go through your house and take a look at your bills to get a personalized list of energy recommendations. Realtors provide access to the MLS, but you can skip this and list on MLS via the Flat Fee MLS listing service. Twenty-four of Utahs 29 counties had double-digit gains. As more and more homebuyers enter the scene, Utah has become a very popular destination to settle down leading to more of a sellers market in Utah vs a buyers market.