utah housing market forecast 2025

The average sold home was on the market for two weeks. Millennials and Hispanics are in their prime buying years. Hence, there is an ongoing shortage of available homes for sale by 3.2 months supply in September 2022. The issue is that demand is so strong that inventory can't reach a level that indicates a sufficient supply. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. Subscribe to get our top real estate investing content. NEED MORE CLARITY? People are also ignoring the appraised value and waiving the inspection fees. See the Highland (Utah State, Utah County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. Utah Housing Market Forecast 2025. Is real estate housing market slowing down in UT? At the same time, the number of homes sold fell 34.8% and the number of homes for sale rose 82.5%. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Current Housing Market Trend 2022: In September 2022, median home prices in Utah were up by 5.6% compared to the last year. Buyers might consider a mortgage with short due dates and high payments. Significantly higher inventory levels gave buyers more options, which likely impacted sales in the fourth quarter. Salt Lake City's appreciation rates in the last twelve months (2021 Q2 2022 Q2) continue to be some of the highest in the nation, at 15.48%. Listings on the MLS sell 17% faster than those that are not. Year-to-date median home price increased by 15.1% from $443,036 in 2021 to $510,000 in 2022. Even before COVID swept across the world, the Utah housing market was already out of reach for 63% of renter households. It provides many opportunities to investors, regardless of the market you want to invest in. 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. The median days on the market was 69 days, up 46 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. On average, the number of homes sold was down 34.8% year over year and there were 1,765 homes sold in January this year, down 2,708 homes sold in January last year. 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. And even with higher mortgage rates, the three-county region sill experienced a 17 percent increase in median sales price last month compared to January 2022, going from $329,000 to $385,000 . Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. S. Last Updated: February 15, 2022. uk Search Engine Optimization. increase. pd. People are moving there due to the lower cost of housing, good quality of life, and outdoor recreation. 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. Buyers need to be prepared to go above and beyond to get the house of their dreams. Experts predict that mortgage rates will continue to climb because of continued inflation, potential recession, and geopolitical tensions. 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. Interest rates and home prices share an inverse relationship. The Utah housing market is amid a major shift. 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. Rich Sarkis, co-founder and CEO of real estate data firm Reonomy, told Inman that in the medium-term, data will be everywhere and using it will be . Housing Market Update: Home Prices Fall Annually For First Time in a Decade As Mortgage Rates Pass 7%, The Typical U.S. Home Changes Hands Every 12 Years, Down From 2020 Peak, Market Recovery Hampered by High Housing Costs, Low Supply in January, Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade, Redfin Predicts a More Balanced Housing Market in 2022, Housing-Market Mayhem: U.S. Home Sales Likely to Hit Record High of $2.5 Trillion In 2021, REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. Is real estate housing market slowing down in UT? Give us a call at (801) 948-9499, shoot us an email, or message us on Facebook. If you are looking to make a profit, you dont want to buy the most expensive property in the Salt Lake City real estate market and expect to make a good profit on rents. Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, according to the Salt Lake Board of Realtors. More houses were sold in 2020 than in any prior year, putting 2021 on pace to be the second-highest sales year ever. The Fastest Growing Cities For Rents in the Salt Lake City Metro Area (Y/Y%), The Fastest Growing Cities For Rents in the Salt Lake City Metro Area (M/M%). Sell FSBO, Sell your home now! 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. The Total number of properties sold during the period. Before you begin, make sure you have a solid financial condition. Average time for a house to be on the market is 16 days, though most of the time it sells in the first 5 days. Utah market trends and housing statistics. See median list price, median house size, median $/Sqft and inventory. Mortgage interest rates are projected to climb, but only a little. 1,260 single family and multi-family homes were sold throughout Salt Lake County in March 22. About Us How Buyers and Sellers Can Navigate a Hot Utah Housing Market. Economists believe the housing market will slow down but not crash soon. The average time it took to sell a home in the counties covered by this report rose 27 days compared to the same period in 2021. approximately 186,419 people. The 2023 Official UTAH Housing Forecast in Salt Lake City. My current forecast is that mortgage rates will trend lower as we move through the year. The median selling price was $396,000 for multi-family homes, up 2.9% year-over-year. Despite the economic downturn and rising mortgage rates, you must look for opportunities to boost your income. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. However, there were a few counties where the median home price decreased from 2021 to 2022, such as Beaver County, where it decreased by 5.7%, and Iron County, where it decreased by 11.4%. A real estate agent or broker was used by 86% of buyers to purchase their homes. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. He said over the last five years, home prices have gone up about nine percent each year in. The median number of days property listings spend on the market in a given geography during the specified month. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. Many sellers waiting for the market to turn around will likely give in and increase the inventory. Rates rose dramatically in 2022, but I believe that they have now peaked. 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. Know how to get the best deal while selling a house. Utah's economy is currently in excellent shape. Bringing it to an all-time low of 26.7% compared to the last year. Twenty-four of Utahs 29 counties had double-digit gains. For example, some of the featured topics include: Employment in financial activities is down by 63,000 since february 2020. All in all, we believe that you should analyze your homes weak spots and invest in energy efficiency before you think about selling. The price growth is trending lower, and 2023 can't be a year of double-digit increase. By researching and structuring completeSalt Lake City turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. All these home improvement changes dont have to happen in a year. Theyre also willing to waive inspection fees and ignore the banks appraised value of the house. The number of homes sold also decreased in most counties. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. 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. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. 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. So far, Utah home prices are still up year over year. Based on the data provided by Zillow, here is a forecast for the Utah housing market. Continued historically low mortgage rates and a solid recovery from the pandemic predict that the Utah real People have flocked to Utah especially for the steady stream of STEM related fields of work available. Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, Figure 1. All rights reserved. 2020's annual growth rate was 11.8%. 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%. Asmortgage companies in Utahmake it harder to get a loan, home affordability suffers and reduces the demand. As a result, no foreclosure crisis is on the horizon. Salt Lake City is a moderately walkable city with a population of. Explore multiple ways to sell your home fast for cash. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. If the federal reserve successfully keeps inflation under control and eases up on its impulsive rate increases. Home prices in Utah were down 2.8% year-over-year in January. 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. Utah housing market forecast 2025. Basset does say that Utah buyers should be ready for a brutal market when it comes to stepping into the Utah housing market, to know what exaclty youre getting into, and make sure you get an amazing agent. If youve got a new job or decided to retire, relocate to a new state. Next year, there might be a chance that it will be a buyers market. 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 Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. Keeping this in mind, Interest rates are still low, which might lure prospective buyers into entering the market. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. Know how to sell as is. I'm no Nostradamus, but I'd like to take a stab at what the world of real estate transactions might look like in the year 2025. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. It also makes the Salt Lake City housing market unusual in the demand for homes with multiple bedrooms suitable for large families. The Salt Lake City real estate market has been one of Millennials' toughest real estate markets due to limited supply relative to demand. 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. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. The Urban Land Institute ranked it the nations third-best market for commercial development in its 2018 Emerging Trends report, fueled in part by the big names relocating here like Goldman Sachs, which now has the fourth-largest office in the world in Salt Lake City. As per August 2022 data, only a 3.2-month supply is available in the inventory. Builders arent helping the situation as they permit for homes at record levels but cant complete the houses because of labor and material shortages. Looking for a FSBO home? Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. A list price in real estate is the price of a house for sale determined by the seller and her listing agent. Do you sell your house and lose everything youve put into it? The median days on the market was 69 days, up 46 year over year. The benefits of an energy efficient house is that youll save substantial amounts on your utility bills. Utahs population has grown by 18.4% over the last decade making it the fastest growing state in the United States. Making a strong first impression extends to your homes exterior. The rapid appreciation witnessed over the past two years may have begun to decelerate as a result of rising financing costs and deteriorating affordability. This, combined with higher mortgage rates, likely impacted sales in the fourth quarter. The median price of a home in the United States is currently $519,300. Or do you keep it and make it more energy efficient and comfortable for your family? Supply surges when builders continue to build, irrespective of the lowering demand for houses. The city is already home to many new startups. 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. As it becomes easier for buyers to get a loan, the demand consistently increases. Economists do not believe that the real estate housing market will crash. The bull market that has been in place for quite some time appears to have lost its momentum. Current Housing Market Trend 2022: The supply of homes remains historically low, according to Lawrence Yun, NAR Chief Economist and Senior Vice President of Research. The states economy has proved to be one of the nations best in reemploying workers as officials continued to actively encourage those drawing unemployment benefits to seek work in sectors less damaged by the pandemic. Buying a home is the biggest investment opportunity for most people in their lifetime. That said, listing prices were higher in Morgan, Wasatch, and Summit counties compared to the prior quarter. Paul), Minneapolis is on track to becoming unaffordable by 2025 This will roughly average the 30-year and 15-year mortgage rates at 8.50 and 7.70, respectively. I am not concerned by this and expect the market to moderate as it comes to terms with higher financing costs. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. Forbes listed Salt Lake City first on its list of next tech meccas. Some experts also believe that the 30-year and 15-year mortgage rates could drop to 6.0 percent and 5.25 percent, respectively. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. Once your house sells, youll need to buy another one, so youll have to bid against other buyers in an overvalued market. Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. To get the top dollar value for your money, its beneficial to focus on the local housing market in Utah. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. A mortgage application is a document submitted to the lender to buy real estate properties. Staging for home sale largely involves cleaning, rearranging, or renting furniture and other aesthetic tactics to make your home visually appealing. A housing market bubble refers to a steep incline in prices with increasing demand and limited supply. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Where there are currently good-paying jobs, new residents are sure to move in. Salt Lake City has seen an increase in housing construction since the economy rebounded. must have viewed at least 10 homes in a three month period. The median price for a house in Utah in 2021 was $442,200, 24.6% higher than the previous year. Wood, who has been tracking housing in Utah since the 1970s, presents a market forecast each year. Salt Lake City saw rent increase 3.8%, making it third. In January 2023, there were 8,545 homes for sale in Utah, up 82.5% year over year. If youre not planning to stay in the real estate property for a long time, do not buy it. In short, huge supply and minimum demand. Homes sold fastest in Salt Lake County and slowest in Summit County. Lowering your debt-to-income ratio will help you easily qualify for a mortgage preapproval when applying for a loan. za fx hq read . They also anticipate prices to grow 8.5% and sales to grow 15.2%. 60% of workers who switched jobs last year earned more money in their new positions, beating inflation. Energy efficiency is about more than just using less energy, it involves making the most of what you do you use and avoiding waste. Year-to-date median home price increased by 15.1% from $443,036 in 2021 to $510,000 in 2022. Year over year, prices rose in four markets but pulled back in the other three. A recent report on the forecasts for Utah's housing market in 2023 was given by Jim Wood, a housing economist at the University of Utah's Kem C. Gardner Policy Institute, and Lawrence Yun, chief economist and senior vice president for research at the National Association of Realtors projects that 2023 will be a challenging year for the housing market, with interest rate hikes, falling home sales, and dropping home prices. To summarise, these factors are broadly categorized into 4 key segments. Zillow's year-over-year home value forecast data to adjust the (2) typical home value in each state in . Why are people moving to Utah? As a result, the monthly mortgage payment will remain high, and homes may look less affordable. Park City and the northern side of Oakley have properties that cost on average well over a million dollars. Home values are expected to go down by 5% to 10% due to unaffordability. Couple that with a high school graduation rate, and a large number of college graduates and you have an attractive workforce for many large companies. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. Fees and taxes can vary from one county to another. As the mortgage rate decreases, it gets more convenient for the homebuyer to afford a home. Salt Lake City is the 151. largest city in the United States, located in Utah State. It is measured by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. The average months of supply is 3 months, up 3 year over year. An energy efficient house has a higher resale value than just a regular house. 73% of Sellers said they would use the same agent again. Is Salt Lake City a Good Place For Real Estate Investment? Buyers finally have market power. 30251 Golden Lantern, Suite E-261 Based on Redfin calculations of home data from MLS and/or public records. Salt Lake City's population is also very young. Home prices may continue to fall but will not be enough to offset the higher interest rate. uu. Some experts predict that due to low inventory, home prices wont drop in 2023. Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isnt the only upscale market in the area. Since 1996, housing prices in Salt Lake County have increased at an average annual rate of 5.1%. This wont be beneficial in the long run if the housing market Utah stays slow. Learn what happens to the Utah housing market during a recession. Surged mortgage rates and plunged home sales have worried buyers and sellers about the Utah housing market trend 2023. 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. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. Prices will return to Q4 2019 levels by Q3 2021. Utahs economy continues to add jobs, but the pace of growth has started to slow. 3,051 homes were sold in Utah in January 2022, down 7.2% for January 2021. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary. Utah market trends and housing statistics. Get a clear insight here. However, despite the fluctuations, the market remains strong in some counties, and it will be interesting to see how these trends develop in the future. tl. 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. Next came Phoenix, Las Vegas, Sacramento, and Tampa. According to a Bankrate analysis of Labor Department data, Utah also posted the second-strongest job growth in the nation from December 2019 to December 2020. If the mortgage rates continue to rise and houses stay on the market for longer, the real estate market value will continue to fall. TREC:Info About Brokerage Services,Consumer Protection Notice. Salt Lake City is the number one spot for this years top market list because of its healthy economy and low unemployment rate. Learn them here. How to List a House on MLS: Learn about various ways of getting on the MLS. The overall cost of living in Utah is cheaper than the nation overall, and it is far cheaper than California, so many choose to relocate here from the high-cost states on the coast. A large number of Californians are relocating to Utah, putting extra pressure on the supply side. Utah's employment landscape is also one of the most impressive in the country. As the Fed attempts to control inflation by increasing mortgage rates. To avoid entering into a real estate transaction too early, it is best to wait and time the market. 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. 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. Mortgage Interest rates significantly impact the current Utah real estate market. In the end, you want to pay the right amount. 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. This results in defaults and foreclosures, ultimately increasing the market supply of homes. A typical homebuyer financed 94% of the home price. vx. Consult with one of the investment counselors who can help build you a custom portfolio of Salt Lake City turnkey properties. Learn about it so that you are aware. The fees that you are required to pay as part of the rental program depend on how well-maintained the units are. The number of mortgage applications received compared to the previous year. The top 5 states homebuyers searched to move to were Florida, Texas, Arizona, Tennessee, and South Carolina while California, New York, District Of Columbia, Illinois, and Massachusetts were the top 5 states homebuyers searched to move from. Utah boasts the nations strongest pace of job growth, along with rock-bottom unemployment, ultra-low mortgage rates, few mortgage delinquencies, and low state and local taxes. The supply of newly constructed houses has yet to return to pre-2007 levels. Overall, the state saw a 44.9% drop in home sales volume between December 2021 and December 2022, with 2,644 homes sold in 2022 compared to 4,798 in 2021.