utah housing market forecast 2025

In a slow market, inventory is usually high, and home prices keep decreasing due to lower demand. Utah's employment landscape is also one of the most impressive in the country. 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. Companies that buy houses for cash fiercely compete for properties during a hot seller market. Major changes in a countrys demographics can have a long-term impact on current Utah housing market trends. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. While others believe that due to the higher interest rates, sellers will lower their prices to current levels. The demand continues to rise as more buyers jump into the market. Where there are currently good-paying jobs, new residents are sure to move in. Millennials and Hispanics are in their prime buying years. More houses were sold in 2020 than in any prior year, putting 2021 on pace to be the second-highest sales year ever. Listing on MLS is the best way to sell a house. The states unemployment rate in November was 2.2%. uf. The countrys economic power directly affects the housing markets in the US. 89% of Buyers said they would go with their real estate agent again or recommend them to others. There are still not enough houses. The average months of supply is 3 months, up 3 year over year. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. 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. Let us look at the price trends recorded by Zillow over the past few years. Utah's job market is robust enough to avoid widespread foreclosures, and housing demand is expected to remain high in 2023 due to the state's rapid expansion and widespread home shortage. This is a 15% increase compared to the previous year. Buying a home is the biggest investment opportunity for most people in their lifetime. However, Salt Lake City in general is very landlord-friendly. 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. The median days on the market was 69 days, up 46 year over year. Lenders used to offer mortgages to anyone without doing any prior credit checks or down payments. However, a housing bubble is considered extremely unlikely. Future mortgage rates are projected to vary anywhere from 5% to 9% by the end of 2023, with the prevailing sentiment landing in the 6.5% to 7.5% range. The median selling price was $396,000 for multi-family homes, up 2.9% year-over-year. It also makes the Salt Lake City housing market unusual in the demand for homes with multiple bedrooms suitable for large families. 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. Selling FSBO is more popular and high-tech than ever. Even while inventory is rising considerably compared to the previous two years, this does not solve a problem that has existed in Utah for years. Carbon County has the least expensive housing market in Utah with a median price of $184,000. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. Realtor.com predicts that Salt Lake Citys median sale prices will rise 8.5% in 2022. Market time rose 22 days from the third quarter of 2022. 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. Know how to sell as is. The median price of a home in the United States is currently $519,300. 1 housing market in the nation for 2022. This is nothing to worry about; rather, it indicates that the market is beginning to return to normalcy. vx. A single-family house is selling anywhere from $550,000-$650,000 in Salt Lake County. When it came to selling their home, 86% of sellers used the services of a real estate agent. The Total number of properties sold during the period. Demographics make it easy to determine what types of real estate properties are in demand. Utah currently has one of the highest population growth rates in the US. While the city limits encompass 110 square miles, downtown runs nearly two miles from east to west and nearly two miles north to south. Windermere Search AppSite Map, 2023 Windermere Real Estate Services Company / All rights reserved / Terms/Privacy / Feedback / Site Map. They also think that people who are first-time homebuyers in Utah will be priced out of the market by people moving in from other states. However, the author does not make any representation or warranty, express or implied, as to the informations accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision and it has been provided to you solely for informational purposes only and does not constitute an offer or solicitation of an offer, or any advice or recommendation. Nerd wallet expects rates for fixed-rates mortgages to rise and then fall to about a 4% increase and stay steady there. Recent sellers typically received 100% of the listing price, and 38% reported lowering the asking price at least once. In December, prices were up 24%, just slightly below the largest gain of 27% in June and theres no sign yet of a slowdown. Keeping this in mind, Interest rates are still low, which might lure prospective buyers into entering the market. A typical homebuyer financed 94% of the home price. The December national unemployment rate continued to decline, registering 3.9%. Realtor.com's forecast and housing market predictions on key trends that will shape the year ahead. Utah Housing Market Forecast 2023 Utah's housing market has boomed during the pandemic, and Utah has emerged as a particularly desirable market. The 2021 Utah housing market will be long remembered for its record-breaking price increases. Best Time to Buy a House: Know exactly when it is best to buy a house! In January 2023, home prices in Utah were down 2.8% compared to last year, selling for a median price. Utah market trends and housing statistics. Know how to get the best deal while selling a house. If inflation continues to fall, as I expect it will, rates will continue to drop. 2020's annual growth rate was 11.8%. If youre not planning to stay in the real estate property for a long time, do not buy it. To be included in this dataset, a Redfin.com user TREC:Info About Brokerage Services,Consumer Protection Notice. The Salt Lake City housing market cant keep up with demand, and this is pushing many Millennials and new residents into the rental market. There is a niche in the Salt Lake City real estate market for large luxury homes, but it is notable for the sheer demand for 4 or more bedrooms in affordable neighborhoods. This would. They. Sellers are reducing prices as homes stay on the market longer. 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. The median price of a home in the United States is currently $519,300. Salt Lake City has seen an increase in housing construction since the economy rebounded. It took an average of 55 days to sell a home during the fourth quarter. Home sales in the five-county area centered on Salt Lake City will be sharply down for 2023 and for the country as a whole. If inflation rises, there will be less consumer spending, leading . Paul), Minneapolis is on track to becoming unaffordable by 2025 There was a 98.0% sale-to-list price, down 2.7 points year over year. Here's the current overview of Utah's Listing prices by Counties (source: Realtor.com). Our forecast predicts total inventory to grow by 4.0% in 2022 overall, and by 22.8% in 2023. Some of the information contained in this article was pulled from third-party sites mentioned under references. ul votes Vote Now . 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. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Buyers might consider a mortgage with short due dates and high payments. Under the baseline scenario, we expect: A 2%-3% drop in prices through the end of 2020, followed by a slow recovery throughout 2021. It is likely that home buyers are waiting for asking prices to fall further and hoping that mortgage rates do the same. For sellers, now is the perfect time to make sure your current house is the most energy efficient, which means theres adequate insulation, all the lights are LEDs, five-star energy appliances, no air leaks in the windows or doors, and weather stripping around doors and windows are up to date. I have moved the needle accordingly. Homeowners are unlikely to trade in their 3% mortgage for a new home with a 7% loan unless necessary. List your property on MLS for the best results. 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. Utahs median house price will continue to rise in 2022 especially because of buyer competition and everyones urgency to get ahead of increasing interest rates. To summarise, these factors are broadly categorized into 4 key segments. Yes! 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. According to local real estate agents, there arent enough single-family homes to meet the rising housing demand. Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. Utah housing market has been ranked as the nation's #1 housing market for the strongest pace of job growth, along with low unemployment, low mortgage rates, few mortgage delinquencies, and low state & local taxes, according to Bankrate.com. 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. 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. Asmortgage companies in Utahmake it harder to get a loan, home affordability suffers and reduces the demand. A change in family dynamics can significantly impact your decision to sell your home. As it becomes easier for buyers to get a loan, the demand consistently increases. Salt Lake City requires landlords to get a business license, even if they own one rental home. Redfins data tells us how a typical home sells for less than the asking price. 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. 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. 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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. Current Housing Market Trend 2022: Mortgage applications were 41% lower than a year ago. It has become one of the top markets to watch in 2023. The 2023 Official UTAH Housing Forecast in Salt Lake City. Also, the supply-demand curve indicates that prices wont crash shortly. Inventory levels have skyrocketed, with the average number of homes on the market up a remarkable 248% from the same period in 2021. Choosing a real estate professional/counselor continues to be a vital part of this process. Lowering your debt-to-income ratio will help you easily qualify for a mortgage preapproval when applying for a loan. Other counties saw more modest increases, such as Salt Lake County, which saw a 14.8% increase, and Summit County, which saw a 13% increase. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Highland Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Highland? The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. Last year (2020) was a big one for the nation's real estate market. Like the rest of the state, Salt Lake City Downtown is benefiting from the regions healthy economy. Housing bubble bursts for a variety of reasons. Not just limited to Salt Lake Cityor Utahbut you can also invest in some of thebest real estate marketsin the United States. Theres a slight hope that inflationary pressure eases and mortgage rates fall next year, such that buyers may feel less pressure. Other counties saw more modest increases, such as Salt Lake County, which saw a 14.8% increase, and Summit County, which saw a 13% increase. According to ATTOM, Illinois had the most REOs (493), followed by New York (337). of $519,300. 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. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. In September, pending home sales fell for the fourth consecutive month, falling month over month by. The state of Utah's population grew 9 percent over the last five years, much of it concentrated in Salt Lake City, where the typical home price at the end of 2021 was $583,858 (ZHVI Dec 2021). 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. An energy efficient house has a higher resale value than just a regular house. As a result, there is no threat of a foreclosure crisis. All areas saw average market time rise compared to the third quarter of 2022 as well as the fourth quarter of 2021. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. 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. The Utah housing market is amid a major shift. Also, it puts current homeowners in a difficult financial situation. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. million Redfin.com users who searched for homes across more than 100 metro areas. Based on the data provided by Zillow, here is a forecast for the Utah housing market. Significantly higher inventory levels gave buyers a lot more options than they have become accustomed to. READ REDFIN'S, Do not sell or share my personal information. You must make the deal look more attractive to sell your house in a slow market. The number of newly listed homes was 1,952 and up 1.8% year over year. Let us know which real estate markets in the United States you consider best for real estate investing! This data does not reflect actual moves. In contrast, Salt Lake City is booming because it is business-friendly. 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 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 average months of supply is 3 months, up 3 year over year. It's important to note that these forecasts are based on historical data and trends, and many factors can impact the Utah housing market, including changes in the economy, interest rates, and demographics. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Norada Real Estate Investments A housing market crashes when theres an immense supply of properties and few buyers to purchase. Sellers can crack a great deal by leveraging high buyer 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. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Year over year, prices rose in four markets but pulled back in the other three. 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. The industry tends to spread out along the highways, and housing follows. 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. Doesnt matter if youre in a hot sellers market or a slow buyers market. People are moving to Utah because of the low cost of living, low crime rate, great skiing, beautiful landscape, and amazing schools. Heber: The housing market in Heber is expected to remain relatively stable, with modest gains of up to 2.2% by January 2024. 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. A majority of homeowners own significant equity in their homes. The board predicts home prices will continue to climb between 10-12% in 2022. Cedar City: While there may be some slight declines over the next year, Cedar City is expected to experience steady growth overall, with gains of up to 2.1% by January 2024. Call (801) 948-9499 to Receive a FREE Attic Inspection. Other Regional Data. There are currently 8,545 residential homes for sale in the United States.. A majority of people dont know whens the best time to buy a house. A home inspector can help the buyer inspect the property thoroughly. If someone violates the terms of the lease, they have three days to correct the situation. The housing market refers to properties bought and sold directly to buyers or through real estate brokers. READ REDFIN'S FAIR HOUSING POLICY. 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. 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. Making a strong first impression extends to your homes exterior. A slow Utah real estate market may force buyers to refinance their new homes. You should also try to clean and declutter your home so prospective buyers can see the living areas. Utah Housing Market Overview What is the housing market like right now? However, rates will still be higher than what homebuyers have become accustomed to. 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. Downtown is the oldest district in Salt Lake City, Utah. You can end a month-to-month tenancy with 15 days of notice. over year. 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. Listing prices, rents, and mortgages are all expected to rise. ye votes Vote Now . Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. xm. The median price of homes for sale in Ogden, UT was $267,300 in September 2019, trending up 10.5% year-over-year. Millcreek rent jumped 16.4%, making it second. It provides many opportunities to investors, regardless of the market you want to invest in. In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. Utah market trends and housing statistics. This results in defaults and foreclosures, ultimately increasing the market supply of homes. Is Salt Lake City a Good Place For Real Estate Investment? Based on Redfin calculations of home data from MLS and/or public records. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. But now your energy and utility bills are sky high and youre looking to move on to bigger and better things. If The Housing Market Crashes What Happens To Interest Rates? S. Last Updated: February 15, 2022. uk Search Engine Optimization. For further information about the housing market in your area, please dont hesitate to contact your Windermere Real Estate agent. Next came Phoenix, Las Vegas, Sacramento, and Tampa. Salt Lake City's population is also very young. See median list price, median house size, median $/Sqft and inventory. Why are people moving to Utah? South Salt Lake rent had the largest monthly growth rate, up 5%. Below is the latest Utah housing market trends analysis. Copyright: 2023 Redfin. To buy or finance a house, it is necessary to be in a stable financial condition. About Us People are also ignoring the appraised value and waiving the inspection fees. And right now, Utah is down to about four weeks of supply of homes. Rich Sarkis. . Looking at the positive forecast, the annual appreciation rate is predicted to be between 10% to 12%. The 2021 Utah housing market will be long remembered for its record-breaking price increases. Prices in Utah have blown up so much that over half of Utah residents cannot afford the state's median prices homes. Ogden was third with rent climbing 15.7%. 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. Demand is one factor in the equation that determines the price of housing. This was marginally below the rate of the prior year but impressive all the same. Builders arent helping the situation as they permit for homes at record levels but cant complete the houses because of labor and material shortages. Continued historically low mortgage rates and a solid recovery from the pandemic predict that the Utah real Mortgage impact: The monthly mortgage payment on the median asking price home also rose to a record high: $2,404 at the current 5.27% mortgage rate, Redfin says. Utah Housing Market Forecast 2025. Creative Ways To Market a House For Sale: Learn how to creatively market your home. The median price for a house in Utah in 2021 was $442,200, 24.6% higher than the previous year.