utah housing market forecast 2025

While there is still a red-hot housing market in Silicon Valley, the state also has the highest poverty levels in the nation. 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. If one of these variables is taken out of the equation, the bubble pops. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. If inflation rises, there will be less consumer spending, leading . Sales fell across the board compared to both the fourth quarter of 2021 and the third quarter of 2022. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose .8%. Understanding current government policies can help you predict the demand and supply and identify potentially false Utah real estate market news. All information presented should be independently verified through the references given below. 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. Explore multiple ways to sell your home fast for cash. Current Housing Market Trend 2022: The national average 30-year fixed mortgage rate is at 6.1% and up 3.2 points year over year. Utah's economy is currently in excellent shape. 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. In January 2023, home prices in Utah were down 2.8% compared to last year, selling for a median price. 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%. As mortgage rates are at record highs in 20 years by 7.08%. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. The largest percentage of the city's population falls in the 25 to 39-year-old age group. As a result, sellers have to lower the prices of their homes. See median list price, median house size, median $/Sqft and inventory. Learn them here. Housing Foreclosure Rates and Statistics 2023. Sellers are reducing prices as homes stay on the market longer. 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. The city is also the national hub of industrial banking. 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. Mormons, the majority of the population in Salt Lake City and Utah as a whole, have an average of 3.4 children. An energy efficient house has a higher resale value than just a regular house. The states unemployment rate in November was 2.2%. Economists do not believe that the real estate housing market will crash. You can end a month-to-month tenancy with 15 days of notice. Looking for support? Thus, home prices rise. The high demand for houses decreases when theres a downtrend in the nations economy. 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. A typical mortgage borrower has excellent credit, substantial equity, and a fixed-rate mortgage with a rate well below 5%. Major changes in a countrys demographics can have a long-term impact on current Utah housing market trends. A real estate agent or broker was used by 86% of buyers to purchase their homes. Utah is in a sellers market currently, which means its easier to sell a house than to buy one, and in order to buy a house, buyers are putting down non-refundable deposits and offering thousands above the asking price which results in some major bidding wars. 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. There are still insufficient homes. Zillow's year-over-year home value forecast data to adjust the (2) typical home value in each state in . The market is still highly competitive. Mortgage rates rose dramatically in 2022 but are expected to trend lower as we move through the year. 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. Florida Real Estate Forecast Next 5 Years: Will it Crash? Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, Figure 1. This ongoing scarcity of inventory explains why many buyers are still forced to bid up prices. Several parameters affect the real estate housing market Utah prices. Realtor.com predicts that Salt Lake Citys median sale prices will rise 8.5% in 2022. Park City Data The city is already home to many new startups. The information set forth herein has been obtained or derived from sources believed by the author to be reliable. Like any product or service, the price is determined by the relative demand and supply. 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. Couple that with a high school graduation rate, and a large number of college graduates and you have an attractive workforce for many large companies. List your property on MLS for the best results. Energy efficiency is about more than just using less energy, it involves making the most of what you do you use and avoiding waste. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Financial market participants anticipate the Fed raising its target Fed funds rate by 175 to 200 basis points from current levels. Typical Closing Costs For Buyer in Utah: Find your Closing Costs Obligations. Want to get a net proceeds estimate? The grid from which the entire city is laid out originates at Temple Square, the location of the Salt Lake Temple. A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. Additional links: Historical Utah Data 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. Get to know about who pays the buyer agent in a for sale by owner transaction. It defines the composition of the population based on age, race, gender, income, migration patterns, and growth. Over the past month, the average rent for a studio apartment in Salt Lake City decreased by -7% to $1,125. Decembers seasonally-adjusted unemployment rate is estimated at 1.9%, with approximately 31,800 Utahns unemployed. At an annual rate of 2.6%, this was the slowest pace of growth since the state started recovering jobs post-COVID. 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. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. Get a clear insight here. The US housing market is in the midst of some significant changes, as average mortgage rates have increased by 80 basis points in just the past two weeks, rising from 5.99 to 6.80 for an average 30-year fixed-rate mortgage. Officials say that the average price per square foot has gone up 22% from $208.33 to $254.62. 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. 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. Utah Housing Market Forecast 2025. It took an average of 55 days to sell a home during the fourth quarter. 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. Salt Lake City is a moderately walkable city with a population of approximately 186,419 people. The state's unemployment rate stood at 2.2% in November 2022, marginally below the prior year's rate. A mortgage application is a document submitted to the lender to buy real estate properties. As you move up Highway 80 toward Hoytsville and Wanship, properties routinely cost more than a million dollars despite the hour commute to Salt Lake City. Listing prices, rents, and mortgages are all expected to rise. Utah housing market forecast 2025. The number of newly listed homes was 1,952 and up 1.8% year over year. It is important to freshen up the curb appeal before potential buyers arrive. That said, listing prices were higher in Morgan, Wasatch, and Summit counties compared to the prior quarter. Wood, who has been tracking housing in Utah since the 1970s, presents a market forecast each year. He said over the last five years, home prices have gone up about nine percent each year in. Bringing it to an all-time low of 26.7% compared to the last year. The median days on the market was 69 days, up 46 year over year. There were only 31.8% of homes that had price drops, up from 10.0% of homes in January last year. Homes that sold above list price likely received multiple offers. Home prices, market trends, COVID-19, the suburban boom, Millennials, Gen Z and more as we look . Just 2,778 Utah homes were for sale in February 2022 compared to the 9,000 houses during the same period in 2020. We only have enough for three months, roughly half of what we require. Until housing inventory remains low. The Utah real estate market saw mixed trends in 2022, according to the data provided by the Utah Association of REALTORS. People have flocked to Utah especially for the steady stream of STEM related fields of work available. Prices will fall, but not to the extent homeowners experienced during the Great Recession. The personal balance sheets of homeowners today are much stronger than they were 15 years ago. Housing Market Predictions 2023: Will Home Prices Drop in 2023? The Salt Lake City housing market cant keep up with demand, and this is pushing many Millennials and new residents into the rental market. Is Salt Lake City going to be a sizzling real estate market for investors in 2021? Yes, it's only six or so years away, but with the speed at which . Fair Market Value: Want to know what is fair market value and how is it calculated? The Utah housing market is amid a major shift. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. american school system. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. Were standing by to help you take the guesswork out of real estate investing. Is real estate housing market slowing down in UT? Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. They also anticipate prices to grow 8.5% and sales to grow 15.2%. Home prices in Utah were down 2.8% year-over-year in January. The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. Nerd wallet expects rates for fixed-rates mortgages to rise and then fall to about a 4% increase and stay steady there. This wont be beneficial in the long run if the housing market Utah stays slow. 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. The best time to sell a house is when youre ready to move. Some experts also believe that the 30-year and 15-year mortgage rates could drop to 6.0 percent and 5.25 percent, respectively. Redfins data tells us how a typical home sells for less than the asking price. Housing Market Forecast 2024 & 2025: Predictions for Next 5 Years March 2, 2023 by Marco Santarelli Housing Market Predictions for Next 5 Years The housing market is a crucial component of the US economy, and predicting its future trends and fluctuations can be difficult, especially as external factors can influence the market. Copyright: 2023 Redfin. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. 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. 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. The countrys economic power directly affects the housing markets in the US. The housing market is a hot topic right now, and after experiencing rapid growth over the pandemic years it looks to now be slowing down. As a result, there are chances that the housing supply will remain low. But now your energy and utility bills are sky high and youre looking to move on to bigger and better things. 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%. Areas of Utah State are also referred to as Northern Utah, SLC, Wasatch Range, and Park City. All rights reserved. price indicates that the housing market is competitive and bidding wars are becoming more common. According to local real estate agents, there arent enough single-family homes to meet the rising housing demand. Also, the supply-demand curve indicates that prices wont crash shortly. Homes sold fastest in Salt Lake County and slowest in Summit County. 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. With less disposable income, more layoffs, and few income opportunities, homebuyers resist buying a house. In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics. Additionally, there are 91 rental properties for sale, and their rent price ranges of $384 to $2.4K per month. vx. Utah housing market forecast 2025. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. Affordability issues may impact rapid price increases in 2022, but we may still see another year of a double-digit increase. Rental Property Insurance: Protect Your Investment Today, 21 Best Cities to Invest in Real Estate in 2023, Orange County Housing Market Forecast & Trends 2023, Sacramento Real Estate Market: Prices, Trends, Forecast 2023, Southern California Housing Market Forecast 2023, Chicago Real Estate Market: Prices, Trends, Forecast 2023, AZ Housing Market: Prices And Forecast 2023, Boston Real Estate Market: Prices, Trends, Forecast 2023, Las Vegas Real Estate Market: Prices, Trends, Forecast 2023, Myrtle Beach Housing Market: Prices, Trends, Forecast 2023, Salt Lake City turnkey real estate investments. Give us a call at (801) 948-9499, shoot us an email, or message us on Facebook. To get the top dollar value for your money, its beneficial to focus on the local housing market in Utah. Utah Housing Market: House Prices & Trends | Redfin Utah Housing Market Home prices in Utah were down 3.0% year-over-year in January. Market time rose 22 days from the third quarter of 2022. Next year, there might be a chance that it will be a buyers market. Utahs nonfarm payroll employment for December 2021 increased an estimated 3.7% across the past 24 months, with the states economy adding a cumulative 59,200 jobs since December 2019. Also, the buyer closing costs depend upon each state and cost up to 4% to 5% of the home selling price. 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. But In the long run, the sellers market will continue. However, rates will still be higher than what homebuyers have become accustomed to. Home sales are down by 26.7% year-over-year, and National Avg. 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 listing price per square foot was $133. 16% of respondents said now is a good time to buy a house. This explains why Salt Lake City has some of the fastest-growing rents in the country. Back in 2007, there were multiple cases of liar loans did exist. A home inspector can help the buyer inspect the property thoroughly. . This puts constant pressure on the Salt Lake City real estate market. Home prices have been steadily rising for the last two years. uu. The economy is strong and the city has one of the lowest unemployment rates in the nation. 51% of homeowners still believe that now is a good time to sell a home. There was a 98.0% sale-to-list price, down 2.7 points year over year. Eskic doesnt see an end to the rising demand of houses in Utah though interest rates could cool that demand just a little bit. 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. Mortgage rates as of November 10 th, 2022: 7.08% Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isnt the only upscale market in the area. Utah homeowners are paying $1,200 more on monthly mortgage payments than last year. The average months of supply is 3 months, up 3 year over year. Utah market trends and housing statistics. Idaho ranked #1 in FHFA State House Price Indexes. Join Us West End Ink is located on 3763 West Andrew Johnson Hwy and is open Tuesday through Friday from 12pm . If youre not planning to stay in the real estate property for a long time, do not buy it. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. A strong job market and a robust economy have been contributing to the rising housing costs over the past several years. million Redfin.com users who searched for homes across more than 100 metro areas. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. 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. Or do you keep it and make it more energy efficient and comfortable for your family? And that only puts more pressure on the Salt Lake City housing market. 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. Discover why Utah is in a sellers housing market, what will happen to home prices in the next year, and how to navigate buying and selling a house in the current Utah housing market. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common. Homes are worth more than ever now, so Utah can expect more sellers to enter the Utah housing market in 2022 and while you think that could help you, think again- Utahs population is far outgrowing the housing supply and the Utah housing market will continue to be a sellers market until the supply of houses can keep up with the demand for houses. high openness, high neuroticism careers, sfo domestic arrivals pick up,