Jeffrey D. Allred, Deseret News Still, you can manage to buy a house and get a better deal. Is real estate housing market slowing down in UT? Although the median sale price increased by 7.5% Y-O-Y as of September 2022, the number of homes sold dropped by 22.5%. It is important to select how you want to sell your house. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. Utah's housing market has boomed during the pandemic, and Utah has emerged as a particularly desirable market. Is this the right time to sell? A balanced market has roughly a six-month supply of houses, which means that if we stopped listing new properties, we'd still have about six months before we ran out. The former wants to sell quickly before the market slows further and theyre willing to priceslightly belowcomparable homes in their neighborhood right away, and the latter may have to drop their price if their home doesnt attract buyers within a few weeks.. Investors in the Salt Lake City real estate market can buy land to develop or invest in housing projects being built in expectation of workers who will soon move to the area. In Utah County, that price is up to $450,000, up an even bigger 20% from the first quarter of 2020. Foreclosures are manageable and. Long-term demographic and economic growth has generated rapid increases in housing prices in Salt Lake County. How To Invest in Real Estate During a Recession? Salt Lake City sits at the intersection of I-80 and I-15. Goldman Sachs Issues a HUGE Housing Market Crash Alert Goldman Sachs says four cities could suffer a rather large housing market correction By Bret Kenwell, InvestorPlace Contributor Jan. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. The price growth is trending lower, and 2023 can't be a year of double-digit increase. Norada Real Estate Investments Homebuilder Paul Peterson, regional president at Richmond American Homes, said that figure is even lower in his vantage point. In-migration to the Salt Lake metropolitan area is still at an all-time high. But Mays price drops and an increase in more people looking to leave the Salt Lake area, according to Redfins data could be an indicator that the pandemic-fueled hype over Utah and Idaho may be running dry. New housing in Vineyard is pictured on Wednesday, Aug. 11, 2021. The number of homes sold fell 47.6% year over year in Salt Lake City in October, according to Redfin. Utah is among the top states in the West and the nation with record-breaking housing price increases and is now facing a severe imbalance in its housing market. So what are the solutions? 51% of homeowners still believe that now is a good time to sell a home. Home values are expected to go down by 5% to 10% due to unaffordability. 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). Fair Market Value: Want to know what is fair market value and how is it calculated? Boise, Idaho, was again the leading metro in Redfin's rankings with the largest share of homes for sale that had a price drop in October. You must make the deal look more attractive to sell your house in a slow market. Thus, demand increases and prices rise as well. In Davis County, that price is $430,000, up 21%. Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. This results in defaults and foreclosures, ultimately increasing the market supply of homes. Remember, caveat emptor still applies when buying a property anywhere. Yes, if you are in a stable financial position. The year will be dictated by mortgage rates, while demographic tailwinds are expected to keep housing demand robust for the rest of the decade.. Learn what happens to the Utah housing market during a recession. Prices will fall, but not to the extent homeowners experienced during the Great Recession. Difference Since Last Month -$ 20,090 ( -3.7%) Key Takeaway 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. You dont need to time the market when you can get the maximum exposure by listing your property on MLS. Theres a slight hope that inflationary pressure eases and mortgage rates fall next year, such that buyers may feel less pressure. Thats up from 12.2% in May 2021. 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. The issue is that demand is so strong that inventory can't reach a level that indicates a sufficient supply. Utah's employment landscape is also one of the most impressive in the country. You must be thinking about selling your home. At the same time, total existing-home sales dropped 1.5% from November to December, marking the eleventh consecutive month of declining sales, and down 34% from a year ago, per NAR. Doesnt matter if youre in a hot sellers market or a slow buyers market. Key Market Stats for the Utah Housing 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. Forecast for 2022: High prices, projected interest rate rises, listing shortages, and slower employment growth will keep Salt Lake County sales at approximately 17,000 units in 2022, according to the Salt Lake Board of Realtors. It made a decent dent in Utahs housing shortage, but not enough to erase it. The listing price determines how long it takes to locate a buyer (i.e., Time On the Market = TOM), and TOM influences the price that comes from seller-buyer bargaining. Sales have been declining by massive double-digits. The cost of obtaining a mortgage decreases as soon as the interest rate does, which increases demand for real estate and raises home prices in UT. However, you shouldnt buy a home because its the cheapest. A home inspector can help the buyer inspect the property thoroughly. Single-family homes, condominiums, townhomes and co-ops are more than 17% above their long-term fundamental house-price growth, but the extent of overpricing of these homes remains far below the. Increasing mortgage rates will surely have a major impact on home sales in 2023. The number of mortgage applications received compared to the previous year. Months supply of inventory: 3 - up from 1 in September 2021. increase. Similarly,Cincinnati, OH is another great market to get started in real estate investing. The demand continues to rise as more buyers jump into the market. Home sales are down by 26.7% year-over-year, and National Avg. For renters, realities are even more challenging. The Utah housing market is amid a major shift. All those factors pushed Utah into first place in Bankrates Housing Heat Index for the fourth quarter of 2020. As a result, sellers have to lower the prices of their homes. Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. Park City and the northern side of Oakley have properties that cost on average well over a million dollars. Either way, knowing your profit potential and purpose is the first thing to consider. If The Housing Market Crashes What Happens To Interest Rates? However, it largely depends on the location and the number of rooms you want to stage. Is Salt Lake City going to be a sizzling real estate market for investors in 2021? The average sale price in the fourth quarter of 2022 rose 0.6% from the fourth quarter of 2021 to $604,105. Also, get secure & powerful listing using Houzeo Mobile App. Surged mortgage rates and plunged home sales have worried buyers and sellers about the Utah housing market trend 2023. It's leaving potential home buyers to question if they should invest in property now or later. Year-to-date median home price increased by 15.1% from $443,036 in 2021 to $510,000 in 2022. And price listing cuts arent unusual in fact theyre common for sellers, especially motivated sellers, to cut their listing price if theyre finding their initial listing price might have been too high to be competitive with other listings. The city is also the national hub of industrial banking. 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. List your property on MLS for the best results. A change in family dynamics can significantly impact your decision to sell your home. To summarise, these factors are broadly categorized into 4 key segments. Were seeing a pretty consistent amount of cash buyers we would have seen prior. Logan: Like Provo and Ogden, Logan may experience some slight declines over the next year, with decreases of up to 0.4%, but is expected to rebound with a more significant increase of up to 1.7% by January 2024. Know exactly whens the best month to buy a house. According to new guidance from credit reporting agency Fitch, we may. Salt Lake City: While there may be some slight dips and gains over the next year, overall, the housing market in Salt Lake City is expected to remain relatively stable, with modest gains of up to 1.2% by January 2024. Almost half of all home sellers in Provo Utah Countys largest city located about 45 miles south of Salt Lake City dropped their asking prices in May as mortgage rates climbed well above 5%. 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. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. 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. And I think the financial markets and household balance sheets are much better off than they were when we had what I consider really (Utahs) only housing bubble, Wood said, during the Great Recession when the state saw 15 consecutive quarters of declining housing prices. While others believe that due to the higher interest rates, sellers will lower their prices to current levels. 2020's annual growth rate was 11.8%. Home sales crash down to reality Like Idaho, Utah's housing market seared red hot during the pandemic housing frenzy. Record price increases were not confined to Wasatch Front counties; nearly every county in the state saw record increases. And right now, Utah is down to about four weeks of supply of homes. Like the rest of the state, Salt Lake City Downtown is benefiting from the regions healthy economy. All Rights Reserved, Weve never seen anything like this: As the Wests housing market rages, Utah faces severe imbalance, renters, realities are even more challenging, Utahs housing market has emerged as one of the hottest in the nation, Is the Wests housing market overpriced? 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. Get informative articles and interesting stories delivered to your inbox weekly. The US real estate housing market is experiencing a major shift. Economists believe the housing market will slow down but not crash soon. You can sell your house to cash buyers, IBuyer, or anyone else. I think preservation is the low-hanging fruit right now.. It has become one of the top markets to watch in 2023. 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. If youre not planning to stay in the real estate property for a long time, do not buy it. Given the sizable gap between household growth and housing units, it will take several years for the housing market to return to a healthy condition.. Home prices may continue to fall but will not be enough to offset the higher interest rate. To buy or finance a house, it is necessary to be in a stable financial condition. Even though homebuilding soared in Utah in 2021, putting the state on the national map for its housing boom. Looking at the median home prices for Utah, we can see that there are some variations across the different counties. Today, Salt Lake City is a major tourist spot in the U.S. Nearly half of all jobs in the state and 40% of the states population are located in Salt Lake County. Here's how it's trying, Rent application fees prove a hurdle to housing for Utah families, 'A big deal': How a blighted Salt Lake City lot will become 200 affordable housing units, US home prices fell in December for the sixth-straight month, Utah Legislature should be 'ashamed' for doing 'favor' for developer, Summit County officials say, Storm's second wave heads for Utah, possibly adding 1-3 feet of mountain snow, Suazo Business Center expands to help Latino businesses in St. George, Recent storms plow through cities' snow removal budgets, Last of 5 teenagers sentenced in murder of 16-year-old Gavin Hone, Bill mandating counties to provide homeless shelters, enforce camping laws passes Utah House, Tank job? Inspect the property thoroughly to summarise, these factors are broadly categorized 4... Utahs housing shortage, but not crash soon four weeks of supply of homes sold fell %! Property for a long time, do not buy it looking utah housing market crash the median house price up. 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