In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. Companies that buy houses for cash fiercely compete for properties during a hot seller market. In a recent release, Fitch analysts stated that the probability of a "severe downturn" in the U.S. housing market is on the. Idaho ranked #1 in FHFA State House Price Indexes. Most experts don't think so. Realtor.com's forecast and housing market predictions on key trends that will shape the year ahead. It is better to price your home competitively and get the best deal. Utah's home values increased by 15.39% in the 12-month period that ended Dec. 31, third-best among U.S. states, according to the Federal Housing Finance Agency. 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. 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%. The Salt Lake City real estate market has been one of Millennials' toughest real estate markets due to limited supply relative to demand. Taking possession of a mortgaged property when the mortgagor fails to make mortgage payments. 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. Interest rates and home prices share an inverse relationship. Lenders today place high standards on borrowers, and most who get mortgages have excellent credit. Buyers finally have market power. Housing Crash coming to YOUR CITY in 2021? 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. 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. Were seeing a pretty consistent amount of cash buyers we would have seen prior. Like Idaho, Utah's housing market seared red hot during the pandemic housing frenzy. Home sales are down by 26.7% year-over-year, and National Avg. Consult with one of the investment counselors who can help build you a custom portfolio of Salt Lake City turnkey properties. The median home sale price broke $400K for the first time this year, and in May it hit $437K. 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%. The Zumper Salt Lake City Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. There are some mind-boggling figures out of some of Utahs more desirable locations, like Summit County, home of the ski resort destination of Park City. Yes, if you are in a stable financial position. Moodys says these cities may see prices drop up to 10%. A home inspector can help the buyer inspect the property thoroughly. Courts regularly side with landlords and award triple fees for damages by a tenant. Long-term demographic and economic growth has generated rapid increases in housing prices in Salt Lake County. Until housing inventory remains low. In Utah County, that price is up to $450,000, up an even bigger 20% from the first quarter of 2020. 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. Utah is facing a dire shortage of affordable homes for sale and for rent, which is likely to be among the dominant issues of the 2023 Utah Legislature. Year-to-date median home price increased by 15.1% from $443,036 in 2021 to $510,000 in 2022. Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. The board predicts home prices will continue to climb between 10-12% in 2022. Tax credits, deductions, and subsidiaries are a few factors that can impact the demand for real estate. Redfins data tells us how a typical home sells for less than the asking price. If someone violates the terms of the lease, they have three days to correct the situation. UT Home Inspector:Check out the best home inspectors available in your area. Mashvisor's Utah housing market forecast 2022 and pretty much all other real estate forecasts for the year have identified Salt Lake City metro area as the country's hottest housing market-beating other burgeoning areas like Boise ID and Spokane WA. If youre not planning to stay in the real estate property for a long time, do not buy it. Housing prices have skyrocketed so much, now more than half of Utah's households are unable to afford the state's median priced home, which for single-family homes was $460,000 in 2021. If one of these variables is taken out of the equation, the bubble pops. Some experts also believe that the 30-year and 15-year mortgage rates could drop to 6.0 percent and 5.25 percent, respectively. Almost 90% of buyers are represented by a buyer agent who shares access to the local MLS. Homes on Provos east bench are pictured on Thursday, June 23, 2022. All those factors pushed Utah into first place in Bankrates Housing Heat Index for the fourth quarter of 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. Yes! Next year, there might be a chance that it will be a buyers market. Understanding current government policies can help you predict the demand and supply and identify potentially false Utah real estate market news. The total fertility rate for the United States hovers between 1.8 and 2.1 depending on the source you want to believe. Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Salt Lake City's housing market is booming because of an ideal combination of business growth triggering in-migration and strong native population growth. The cumulative shortage from 2010 to 2020 totals 44,500 housing units, the report states, leading to record-low rental vacancy rates (now at about 2% along the Wasatch Front), the smallest supply of unsold vacant homes, and the smallest supply of vacant for-sale existing homes. Millcreek rent jumped 16.4%, making it second. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. To summarise, these factors are broadly categorized into 4 key segments. 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. In Salt Lake County, the median single-family home price climbed to $468,000 in the first quarter of 2021, up $68,000 or 17% from a year earlier when the median price was $400,000. Remember, caveat emptor still applies when buying a property anywhere. 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. Forbes listed Salt Lake City first on its list of next tech meccas. The number of homes sold fell 47.6% year over year in Salt Lake City in October, according to Redfin. At last, home prices reach unstable levels, making it unaffordable for the average or even above-average buyer. However, you shouldnt buy a home because its the cheapest. The supply of newly constructed houses has yet to return to pre-2007 levels. According to the most recent Salt Lake County house sales data, it seems that Utah's housing market may be slowing ever so little in the near future. Heres our guide. The same can be said about the Salt Lake County real estate market. 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%. Utah is currently facing a severe imbalance in its housing market, according to a recent study. Lenders used to offer mortgages to anyone without doing any prior credit checks or down payments. The price growth is trending lower, and 2023 can't be a year of double-digit increase. As for the big Wall Street firms or the hedge funds, Eskic said theyre still relatively small in our market, about less than 2%.. UTAH (ABC4) - Utah's housing market's outrageous pricing has gotten a lot of buzz recently. Supply surges when builders continue to build, irrespective of the lowering demand for houses. If you have bills to pay, such as credit card balances, student loans, or asset installments, it is always better to clear them before making a huge commitment. However, it depends on the location. Prices will fall, but not to the extent homeowners experienced during the Great Recession. The demand continues to rise as more buyers jump into the market. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. Housing prices have skyrocketed so much, now more than half of Utahs households are unable to afford the states median priced home, which for single-family homes was $460,000 in 2021. 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. Where there are currently good-paying jobs, new residents are sure to move in. If you are going to price your home high, there are chances that you may detract potential buyers. Employment in the state remains strong, with a jobless rate of 2.2%, the lowest in the nation. According to housing economists, there are five significant reasons why the market will not crash anytime soon: Low inventory, Lack of newly constructed housing supply, Several new buyers, Strict lending standards, and a Drop in foreclosures. Earlier this summer, as home prices began to taper from their spring peak, Boise held that same ranking with a 70% share. Were standing by to help you take the guesswork out of real estate investing. The city is the core of the Salt Lake City metropolitan area, which has a population of roughly 1.2 million. Homes are staying on the market for longer as buyers struggle to find affordable housing, with mortgage rates at a 20-year high of 7.08%. 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. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. The other is supply. Despite all . A few sellers are still in a dilemma considering the slow market, high inventory, decreasing home prices, and increasing mortgage rates. All this has exacerbated what housing experts have for years been sounding alarms for, even before the pandemic: Utahs housing shortage. However, few experts believe that housing inventory will rise as interest rates rise and homes become more unaffordable. 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. (The typical Utah home lost 8 percent of its value during the Great Recession, according to estimates released by the U.S. Census Bureau). In December, prices were up 24%, just slightly below the largest gain of 27% in June and theres no sign yet of a slowdown. You must be thinking about selling your home. You should also try to clean and declutter your home so prospective buyers can see the living areas. It refers to the phenomena where the income-to-price ratio of people is increasing, goods and services become more affordable, and people gain more purchasing power. 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.