On average, the number of homes sold was down 34.7% year over year and there were 1,769 homes sold in January this year, down 2,712 homes sold in January last year. Here are the latest figures, The Wests housing crunch began over a decade ago. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. . Nationwide, 25% of homebuyers searched to move to a different metro area between Nov '22 - Jan '23. Three of the top ten most overvalued US housing markets are in Utah. Realtor.com has predicted that the Salt Lake City region will be the top housing market in the country for the year with an anticipated price and sales growth of 8.5% and 15.2% respectively. While 2021 was the year of the shocking home price, 2022 was the year of the reset, said Steve Perry, president of the Salt Lake Board of Realtors. Like many other housing markets in the United States, the Utah housing market follows seasonal trends. Home > Blog > Market News & Trends > Utah Housing Market- Trends and Predictions for 2022. After seven years of Salt Lake County sales averaging 18,000 homes, the high prices of 2023 will mean sales will not top 13,000, he predicted, and likely range between 11,000 to 12,000. The average months of supply is 3 months, up 3 year over year. This speedometer reflects the state of the regions real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. But high mortgage rates, some weeks hovering over 7%, did trigger a type of collapse in demand and sales. After a big boom over the past two years, there will essentially be no change nationally in home prices in 2023, said the National Association of Realtors chief economist Lawrence Yun. Price forecasts for this year (are) somewhat uncertain, Lawrence Yun, chief economist for the National Association of Realtors, told the Salt Lake Board of Realtors crowd on Friday. As mortgage rates are at record highs in 20 years by 7.08%. So youll find the deals with the homebuilders, but youre not going to find the deals on (existing) homes, Eskic said. In 2022, Redfin itself went through two rounds of layoffs. So Branca wasnt expecting to buy his dream home. Its going to be tough for real estate agents. Heres what volatile mortgage rates are doing to your purchasing power, Stuck between rent hikes and high home prices, this family is scraping by to afford a home, still cant afford to buy something at a significantly lower quality, How the housing market is making boomers richer and millennials poorer, how many other Utahns the market has priced out, 79% of Utah households couldnt afford the states median priced home, Why two housing experts disagree on how much Utah home prices will drop in 2023, National Association of Realtors chief economist Lawrence Yun, What state lawmakers are doing to address Utahs housing crisis, Department of Labor reports that child labor has increased by nearly 70% since 2018, Feds hardwire child care benefits to $39 billion in CHIPS Act funding, Grit and circumstance: Bestselling author Angela Duckworth brings her wisdom to BYU, The starter home in Utah is extinct: How first-time homebuyers could get 20K for new homes, How a new service aims to help teens remove explicit internet images. The latest housing data shows the median priced home in Utah's most populated county increased to $550,000 in the third quarter of 2021. Like Salt Lake City, the West Valley City housing market is competitive, with listed properties receiving four offers on average and selling after 41 days on the market. Like West Valley City, West Jordan is considered to be a suburb of the capital city Salt Lake City. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Industry experts and analysts have recently released their different takes on various US housing markets. If you are looking to purchase your primary residence in todays market, then yes, the time to buy is today! Even a two-year period will historically yield an increase in equity in the Utah housing market. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points year. Prices, though theyre on a downward trajectory, are still up year over year by single-digit percentages at least for now. If you ask Perry, they have a silver lining. Peak-to-trough, with thepeak being May 2022, he expects prices to decline by a percentage somewhere in the teens, depending on what happens with interest rates over coming months. How far will they fall? Buyers finally have market power. Will it pop or deflate?, disagree over how much home prices will decline, Why two housing experts disagree on how much Utah home prices will drop in 2023, Housing market is correcting but Utahs affordability crisis isnt going away. Branca said if someone like him is struggling to buy, he cant imagine what its like for people living on lower incomes. Here are their year-over-year predictions for the Salt Lake City housing market in 2022: Forecasted home sales change: +15.2%. In 2022, that was Joseph Brancas reality, along with plenty of other Utahns who wanted to join the mad dash to homeownership, but ultimately ended up walking away. The Utah housing markets that are most overvalued are Ogden, Provo, and Salt Lake City. Imagine earning over $100,000 a year and being qualified to buy a half-million-dollar home but still not being able to swing it. The median days on the market was 70 days, up 47 year over year. Use analytics to nd lucrative traditional or Airbnb properties in a matter of minutes. We went through a real roller coaster ride the past couple of years mainly because of the pandemic. It will test their mettle and resolve as it will be an exercise in decision-making and patience. Comparatively speaking, I make more money than my parents combined income at my age and still cant afford to buy something at a significantly lower quality than what they were able to purchase at that same age, Branca said. When he first started looking in November 2021 and into early 2022, Salt Lake Countys median single-family home price had hit $580,000, up 24% from a year earlier, according to the Salt Lake Board of Realtors. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Along with his love of family, he has a very strong competitive spirit, is passionate about personal development, and truly cares for others. Families flourish in Utah. Several people claim that hedge funds, investors, and cash buyers are to blame for this lopsidedness. Compass announced a third round of layoffs on Thursday, according to The Real Deal. How can I get a free valuation of a home in Utah? Thats when buyers found their affordability ceiling. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. So (many have) stopped new construction and consequently weve seen new production just fall off, Wood said. Instead, he was actually looking at a mortgage payment of up to $4,200 a month, depending on the days rate. The median home price has increased from $345,000 in September 2019 to $553,500 in September 2022, with a peak of $577,500 in May 2022, representing a staggering 60.43% increase in 36 months, well above the national average. In 2021 the average interest rate was 2.96%, the lowest interest rate that FreddieMac measured since 1971. Overall, Yun has predicted U.S. home sales to fall by 6.8% in 2023 compared to 2022, and he expects home prices to increase only 0.3%, or essentially flatline. The median days on the market was 70 days, up 47 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. Such a decline is extremely unlikely in Utah in 2023 and 2024, Wood wrote. Utahs housing market has a tight supply, and while we may see prices decrease somewhat, its not likely to experience a significant decline in housing values. A bubble is highly unlikely at this point in time because a bubble is defined as a prolonged period of actual price decline, not moderation or deceleration. When you look around at those who are not in as comfortable of a position, well, what options do they have at all?. Realtor.com isn't the only group offering a strong forecast for the Salt Lake City real estate scene in 2022. Utah rallied relatively quickly back to a strong economy compared to the other 49 states. Therefore, Wood is predicting a couple of quarters in 2023, with home prices likely the most vulnerable in the first and second quarter of the year. The average annual profit of property investment was: 10.098% in 2018; . FastExpert partner and Utah real estate agent, Preston Hicks, shares his professional perspective on the Utah housing market. They say it will pose challenges, especially for homebuilders, but also rebalance a market thats priced some two-thirds of Utahns out of affording the median priced home. The Utah housing market has experienced consistent growth in real estate throughout the past five years, but it started to take off in mid-2020. Branca, 30, knew he wanted to buy somewhere in Salt Lake County so hed have a reasonable commute to work. In addition, Utahs median listing price is 36% more than homes across the United States. It was a year in which a boiling hot housing market saw historic deterioration, as Fortune put it. Its going to be tough for home builders, Wood said. They climbed up so high so fast. He noted in the early 1980s there were a few (quarterly) periods where prices actually declined before hitting a positive trajectory soon after. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. They can step back and wait for the dust to settle., As a result, Wood predicted price declines that have been tumbling since May will stabilize by the third quarter of 2023, and the annual median sales price for 2023 will likely be within a few percentage points one way or another of 2022., Worst case scenario, Wood added, prices down about 5%; best case scenario, prices equal to 2022.. The Midwest, he said, will likely see minimal price increases.. Even this far into 2022 with the mortgage rate hikes, Utah remains one of the hottest markets. Get your free online home valuation in only 2 minutes! Shouldnt I wait for mortgage rates to decrease before I buy? However, they expect the market to enter a correction that will persist into 2023 thanks to the Federal Reserves aggressive rate hikes to combat inflation. between 2021-12-31 and 2022-12-31. Additionally, both Wood and Eskic predict Utahs estimated 31,000-unit housing shortage will continue to keep home prices high, even if the state sees some price drops, so they expect Utahs housing affordability crisis to remain a persistent issue that is pricing out more than 75% of Utahns from affording the states median-priced home. The latest migration analysis is based on a sample of about two Windermere Living The demand is causing local buyers to cut corners by foregoing home inspections and appraisal contingencies just to beat the competition. Home prices skyrocket amid early pandemic months due to bidding wars and a shortage of active listings. 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. It is a valid and fundamental question as our homes are typically the largest and most expensive asset we own. Housing prices are deemed overvalued when their local incomes, job market, and economy do not support the sale prices. In its December 2022 monthly report, Realtor.com said its monthly housing data showed a housing market thats continuing to cool, with the number of homes for sale up by 54.7% compared to the same time last year. When he thinks about what his parents life was like in the same window of time in their lives, he said it blows his mind. price indicates that the housing market is competitive and bidding wars are becoming more common. Homes in Big Willow Creek Estates are under construction in Draper on Friday, Nov. 11, 2022. Wasatch County makes its way to our Utah housing market forecast for 2022 because it has attracted big-city folks from San Francisco and New York for relocation. In Utah, housing prices have begun to decline, down from their peak in May, when the median sales price of Salt Lake County homes was $565,600. At an annual rate of 2.6%, this was the slowest pace of growth since the state started recovering jobs post-COVID. And due to Utah being a robust economic powerhouse, this state will be poised for the quickest and most powerful market shift back to an unbalanced sellers market. 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. Once the market rebounds, buyers can be in an even more powerful position when the market shifts back to a more lopsided sellers market. Utah will see minor year-over-year price declines in the first and second quarter of 2023, but prices will begin to stabilize by the third and fourth quarter, he said. The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Given that interest rates more than doubled in less than a year, its impossible for there not to be an impact on the housing market. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Utah continues to be a light upon a hill to others throughout the States and even worldwide. Where do we go from here? 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. The median price of a home in the United States is currently $518,200.. Hes employed as a professional actor and director of marketing and advertising at Hale Center Theater Orem, as well as director of communications at the Salt Lake Acting Company. If you ask Branca, 2022 definitely wasnt the year for buyers either. The impact of the correction on Utahs real estate market should be softened by its robust economy and limited home inventory. 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