Salt Lake City is a moderately walkable city with a population of approximately 186,419 people. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. Although Utah will not see a recession, job gains are expected to slow down. The personal balance sheets of homeowners today are much stronger than they were 15 years ago. Utahs economy continues to add jobs, but the pace of growth has started to slow. Sellers are reducing prices as homes stay on the market longer. Here's your Official 2022 Utah housing Market Forecast in Salt Lake City. 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Salt Lake City is the number one spot for this years top market list because of its healthy economy and low unemployment rate. Home sales: 3,219 - 26.7% less than a year ago. An energy efficient house has a higher resale value than just a regular house. About Us See the Highland (Utah State, Utah County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. Choosing a real estate professional/counselor continues to be a vital part of this process. An increase in interest rates makes homeownership unaffordable for more potential buyers. Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. The median price for Salt Lake County is $500,000 which is up 27.6% from 2021. This will roughly average the 30-year and 15-year mortgage rates at 8.50 and 7.70, respectively. All in all, we believe that you should analyze your homes weak spots and invest in energy efficiency before you think about selling. 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. 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. He predicts a balanced market in which neither buyer nor seller has a monopoly. Year-to-date median home price increased by 15.1% from $443,036 in 2021 to $510,000 in 2022. The latest migration analysis is based on a sample of about two Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. Some counties had particularly significant increases, such as Piute County, which saw a 32.6% rise, Duchesne County, which saw a 44% increase, and Rich County, which saw a 36.7% increase. 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. It defines the composition of the population based on age, race, gender, income, migration patterns, and growth. , Homes that sold above list price likely received multiple offers. 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 UT housing market has been red hot since the pandemic, but it is cooling fast. Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. Over the past 12 months, the state added 43,300 jobs. The demand continues to rise as more buyers jump into the market. Eskic doesnt see an end to the rising demand of houses in Utah though interest rates could cool that demand just a little bit. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. A statement made by one of Utah's prominent market predictors, sent a room full or Realtors into a. The average sale price in the fourth quarter of 2022 rose 0.6% from the fourth quarter of 2021 to $604,105. Know how to sell as is. You dont need to time the market when you can get the maximum exposure by listing your property on MLS. Jose Aguilar with West End Ink is Hamblen County's best tattoo artist in People's Choice 2022. Utah's population grew by 18.4% over the past decade, making it the fastest-growing state. The city is also the national hub of industrial banking. While the city limits encompass 110 square miles, downtown runs nearly two miles from east to west and nearly two miles north to south. NAR Chief Economist predicts that Mortgage rates will continue to rise in 2023, but within two years rate should return to 5.5% or 6% percent., He also anticipates that over the next 5 years, home prices will elevate by 15% to 25%. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. There are currently 8,545 residential homes for sale in the United States.. 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. A mortgage application is a document submitted to the lender to buy real estate properties. A large number of Californians are relocating to Utah, putting extra pressure on the supply side. We can help you succeed by minimizing risk and maximizing the profitability of your investment property inSalt Lake City. The Baltimore real estate market has been in decline for years, but several spots offer significant returns. Utah. Nearly half of all jobs in the state and 40% of the states population are located in Salt Lake County. These areCash-Flow Rental Propertieslocated in some of the best neighborhoods of Salt Lake City. Prices in Utah have blown up so much that over half of Utah residents cannot afford the state's median prices homes. 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. The other is supply. 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. Utah Home Sales In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. The number of mortgage applications received compared to the previous year. The states economy is still performing very well, but this is not enough to push the housing market forward at the pace we saw during the height of the pandemic. People are moving there due to the lower cost of housing, good quality of life, and outdoor recreation. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. Doesnt matter if youre in a hot sellers market or a slow buyers market. https://www.zillow.com/salt-lake-city-ut/home-values/, https://www.zillow.com/salt-lake-city-metro-ut_r395053/home-values/, https://www.bankrate.com/mortgages/housing-heat-index/, https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx, https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx, https://slrealtors.com/wp-content/uploads/2021/01/2021-Housing-Forecast-Report.pdf, https://www.realtor.com/realestateandhomes-search/Utah/overview, https://www.sltrib.com/news/2021/06/24/hyper-hyper-competitive/, https://www.zumper.com/rent-research/salt-lake-city-ut, https://www.realtytrac.com/statsandtrends/foreclosuretrends/ut/salt-lake-county/salt-lake-city/, https://www.ksl.com/?sid=46284050&nid=1426https://www.buildium.com/laws/utah-evictions-process/, https://en.wikipedia.org/wiki/Salt_Lake_City, https://www.deseret.com/utah/2021/9/16/22677951/utah-homes-sales-are-slowing-but-the-market-is-still-red-hot-salt-lake-county-city-housing-prices, http://www.cbre.us/people-and-offices/corporate-offices/salt-lake-city/salt-lake-city-media-center/cbre-releases-2018-salt-lake-city-real-estate-market-outlook, Housing Market News 2023: Today's Market Update, The Housing Market in 2023: Trends and Insights, Housing Market Predictions | Real Estate Market Forecast 2023, Is it a Good Time to Buy a House or Should I Wait Until 2024, Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. Creative Ways To Market a House For Sale: Learn how to creatively market your home. The housing market has gone through some significant swings since the start of the pandemic in 2020. Do not sell or share my personal information. Were standing by to help you take the guesswork out of real estate investing. The forecasts center around a baseline prediction of a 4.9% decrease in United States GDP in 2020 and a subsequent 5.7% increase in 2021. People are moving to Utah because of the low cost of living, low crime rate, great skiing, beautiful landscape, and amazing schools. Thirty five percent of home purchases made in 2021 were by first time home buyers. Zillow's year-over-year home value forecast data to adjust the (2) typical home value in each state in . Forbes listed Salt Lake City first on its list of next tech meccas. Also, the median days on the market might reach up to 35 days or more in the next year, with a current avg of 39 days. Houses in the Sat Lake City area are selling $30,000- $100,000 above the asking price. Theres a strong demand for homes across various demographics. South Salt Lake rent had the largest monthly growth rate, up 5%. Buying a home might not build equity as quickly as expected. Give us a call at (801) 948-9499, shoot us an email, or message us on Facebook. It indicates that 50 percent of all housing stock in the area is worth more than $500,077 and 50 percent is worth less (adjusting for seasonal fluctuations). Downtown Salt Lake City encompasses the areas of Temple Square, The Gateway, Main Street, the central business district, South Temple, and others. Some experts expect prices to decline in 2023, depending on what happens with interest rates in 2023. Consult with one of the investment counselors who can help build you a custom portfolio of Salt Lake City turnkey properties. Finally, there are two sides to the pricing coin: present homeowners will profit from high price increases again, but future generations will be less likely to own a home, resulting in more inequality and lower wealth for these households. A strong job market and a robust economy have been contributing to the rising housing costs over the past several years. Learn about it so that you are aware. He said over the last five years, home prices have gone up about nine percent each year in. Selling a house is not an easy task in a slow market. No. The Utah housing market varies by the overall health of the economy. Delaware was next, with one out of every 2,387 homes in some stage of foreclosure. This wont be beneficial in the long run if the housing market Utah stays slow. Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. 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. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. 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. The supply of newly constructed houses has yet to return to pre-2007 levels. To avoid entering into a real estate transaction too early, it is best to wait and time the market. A home inspector can help the buyer inspect the property thoroughly. Utahs median home price remains well over the half-a-million-dollar mark. 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. 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%. Experts believe that home affordability will not change dramatically. Not just limited to Salt Lake Cityor Utahbut you can also invest in some of thebest real estate marketsin the United States. Record price increases were not confined to Wasatch Front counties; nearly every county in the state saw record increases. Salt Lake City is a moderately walkable city with a population of. 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%. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. According to Walletinvestor's Salt Lake real estate market research, home values will decrease in the next 12 months. Just 2,778 Utah homes were for sale in February 2022 compared to the 9,000 houses during the same period in 2020. If you find it useful, please properly attribute this resource with a link. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Our Utah real estate market data is updated quarterly to aid in your real estate forecasts. It is likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. Housing Market Predictions 2023: Will Home Prices Drop in 2023? Year over year, prices rose in four markets but pulled back in the other three. According to the Salt Lake Board of Realtors, the median price of single-family houses sold in 2021 surpassed the half-million barrier, reaching $533,000, a remarkable 25% increase over the $425,000 median price in 2020. Mortgage interest rates are projected to climb, but only a little. The best time to sell a house is when youre ready to move. Whether youve decided to upsize or downsize to live in a low-maintenance home. 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. Here's the current overview of Utah's Listing prices by Counties (source: Realtor.com). Home Buying Process Utah:Own the Home Meant for You! Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isnt the only upscale market in the area. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. Looking for a FSBO home? To buy or finance a house, it is necessary to be in a stable financial condition. Despite the economic downturn and rising mortgage rates, you must look for opportunities to boost your income. Is real estate housing market slowing down in UT? 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%. Here's how the housing market performed, according to UtahRealEstate.com. Let us know which real estate markets in the United States you consider best for real estate investing! Home prices in Utah were down 2.8% year-over-year in January. Prices will return to Q4 2019 levels by Q3 2021. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. It is better to price your home competitively and get the best deal. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. Although paying 1 to 3 percent over the list price is not unusual, you should ask your realtor to come up with a price that is best for you. With 19,202 homes sold in Salt Lake County, 2021 saw another record-breaking price rise, and it is expected to continue this year as well. There has been a gradual decline in homebuyer interest. Florida Real Estate Forecast Next 5 Years: Will it Crash? According to Realtor.com sales will rise 15.2% and prices will increase by 8.5%. increase. The Utah housing market is highly localized as market trends vary from region to region. Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. The median selling price was $525,000 for single-family homes, up 1.9% year-over-year. At the same time, housing inventory has increased by 78% in the past 12 months alone. The city is already home to many new startups. In January 2023, home prices in Utah were down 2.8% compared to last year, selling for a median priceof $519,300. Surged mortgage rates and plunged home sales have worried buyers and sellers about the Utah housing market trend 2023. What Do You Need to Get Preapproved For a Mortgage:Find out how you can get your mortgage approved digitally. What is the housing market like right now? 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. Salt Lake City has a track record of being one of the best long-term real estate investments in the U.S. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. The number of homes sold also decreased in most counties. Based on the data provided by Zillow, here is a forecast for the Utah housing market. I expect the region will continue to see downward pressure on home prices, but a major correction is unlikely. Yes! . The top 10 most overvalued housing markets in Arizona are as follows: Heber-Overgaard, AZ 66.7%, Cave Creek, AZ 26.9%, Saddlebrooke, AZ 23.1%, Coolidge, AZ 18.3%, Marana, AZ 13.6%, Fortuna Foothills, AZ 12.3%, New River, AZ 11.2%, Fountain Hills, AZ 11.1%, Litchfield Park, AZ 9.9%, & Peoria, AZ 9.9%. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. Friends or family referred 36% of sellers who used a real estate agent, and 27% used the agent with whom they previously worked to buy or sell a home. The issue is that demand is so strong that inventory can't reach a level that indicates a sufficient supply. But In the long run, the sellers market will continue. All rights reserved. Homes that sold above list price likely received multiple offers. A seller may conceal the need for major repairs. Our forecast predicts total inventory to grow by 4.0% in 2022 overall, and by 22.8% in 2023. Why are houses so expensive in Utah? 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 one of these variables is taken out of the equation, the bubble pops.