utah housing market forecast 2025

Since the last twelve months, Utah housing prices have gone up by nearly 2.8% Zillow Home Value Index. The supply of newly constructed houses has yet to return to pre-2007 levels. Yes, it's only. The issue is that demand is so strong that inventory can't reach a level that indicates a sufficient supply. Mortgage Interest rates significantly impact the current Utah real estate market. What Do You Need to Get Preapproved For a Mortgage:Find out how you can get your mortgage approved digitally. Realtor.com's forecast and housing market predictions on key trends that will shape the year ahead. Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments a nationwide provider of turnkey cash-flow investment property. Salt Lake City's housing market is booming because of an ideal combination of business growth triggering in-migration and strong native population growth. In general, we can see that the median home price increased from 2021 to 2022, with most counties experiencing a rise. Hes also the host of the top-ratedpodcastPassive Real Estate Investing. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. However, Salt Lake City in general is very landlord-friendly. The average time it took to sell a home in the counties covered by this report rose 27 days compared to the same period in 2021. Want to sell a distressed property? See the Highland (Utah State, Utah County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. Now that the housing market Utah is threatened by a similar instance of rising mortgage rates and the possibility of a recession, buyers and homeowners are asking a familiar question: When will the housing market crash in Utah? He predicts a balanced market in which neither buyer nor seller has a monopoly. To buy or finance a house, it is necessary to be in a stable financial condition. Unless you have plans to downsize, rent, or relocate to a more affordable area, youll only be selling and entering the bubble. increase. Sellers are reducing prices as homes stay on the market longer. Inventory or Homes for sale refers to the number of unsold residential and commercial real estate units. The counties covered by this report added more than 35,000 new jobs over the past year, which was also a growth rate of 2.6%. Is Salt Lake City going to be a sizzling real estate market for investors in 2021? Currently, the average home value is $387,000. 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. Listing on MLS is the best way to sell a house. Utah's employment landscape is also one of the most impressive in the country. The bubble pops up when the equation is reversed. A Premier Turnkey Investment Marketplace For Investors, Newly Listed Investment Properties For Sale In Affordable Growth Markets, Join our Real Estate Investment Group (FREE). There are currently 8,545 residential homes for sale in the United States. Increasing mortgage rates will surely have a major impact on home sales in 2023. It's now the 30th most populated state, with nearly 3.28 million people, according to U.S. Census Bureau data. 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%. The benefits of an energy efficient house is that youll save substantial amounts on your utility bills. Mortgage rates rose dramatically in 2022 but are expected to trend lower as we move through the year. How Buyers and Sellers Can Navigate a Hot Utah Housing Market. Nationwide, 25% of homebuyers searched to move to a different metro area between Dec '22 - Feb '23. Last year (2020) was a big one for the nation's real estate market. The 2021 Utah housing market will be long remembered for its record-breaking price increases. Like the Salt Lake City real estate market, the other housing market to go for to diversify your investments is theBaltimore real estate market. The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. See median list price, median house size, median $/Sqft and inventory. 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. Check out the following video to understand how Houzeo works and why it is one of the bestFor-Sale-By-Owner Websitesin the U.S. An overview of what the platform is all about. 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. Park City Data How Much Does Home Staging Cost: Home sellers spend $755 $2,844 on home staging. Market time rose 22 days from the third quarter of 2022. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. Buyers finally have market power. While the city limits encompass 110 square miles, downtown runs nearly two miles from east to west and nearly two miles north to south. The first and foremost step is to find a medium to sell your house for top dollar. In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000. The Utah real estate market saw mixed trends in 2022, according to the data provided by the Utah Association of REALTORS. tw votes Vote Now 1. cw. Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. Utahs population has grown by 18.4% over the last decade making it the fastest growing state in the United States. must have viewed at least 10 homes in a three month period. However, rates will still be higher than what homebuyers have become accustomed to. In January 2023, there were 8,545 homes for sale in Utah, up 82.5% year over year. This is the MOST ACCURATE UTAH Housing Market Forecast for 2022. You will reduce your carbon footprint and your water consumption. 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. A real estate agent or broker was used by 86% of buyers to purchase their homes. Affordability issues may impact rapid price increases in 2022, but we may still see another year of a double-digit increase. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. Today, Salt Lake City is a major tourist spot in the U.S. 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. A buyer is required to make a sound decision based on their needs, budget, and research. Prices will return to Q4 2019 levels by Q3 2021. The median price of homes for sale in Ogden, UT was $267,300 in September 2019, trending up 10.5% year-over-year. Let us look at the price trends recorded by Zillow over the past few years. More houses were sold in 2020 than in any prior year, putting 2021 on pace to be the second-highest sales year ever. Real Estate Housing Market: Will the Housing Market Crash? Experts believe that home affordability will not change dramatically. Utah housing market forecast 2025. Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. Take your time and be strategic about your home improvement choices to ensure that smart energy technology is going into your home. Surged mortgage rates and plunged home sales have worried buyers and sellers about the Utah housing market trend 2023. Movoto Real Estate is committed to ensuring accessibility for individuals with disabilities. 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. Realtor.com has revealed their housing forecast for 2022 and they anticipate an energetic year ahead for buyers, especially first-timers. As the mortgage rate decreases, it gets more convenient for the homebuyer to afford a home. With the observed trend, higher interest rates could cause a 10% drop in home sales next year. Buying a home might not build equity as quickly as expected. A variety of factors primarily causes a housing market bubble. Also, The median price of an existing home sold increased to $384,800, an 8.4% increase from a year ago. You should also try to clean and declutter your home so prospective buyers can see the living areas. And there are signs that the city is starting to turn around. Housing Foreclosure Rates and Statistics 2023. A housing market crashes when theres an immense supply of properties and few buyers to purchase. If youve got a new job or decided to retire, relocate to a new state. Financial market participants anticipate the Fed raising its target Fed funds rate by 175 to 200 basis points from current levels. Major Utah cities covered in this report: These Utah real estate reports, data, forecasts, and market trends are provided for informational use. Additional links: Historical Utah Data Here's the current overview of Utah's Listing prices by Counties (source: Realtor.com). 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. Companies that buy houses for cash fiercely compete for properties during a hot seller market. They can be fixed, remaining constant over the loan term, or variable, fluctuating with a benchmark interest rate. In August 2022, lenders repossessed 3,938 properties in the United States through completed foreclosures, also known as real estate owned, or REO. Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978, Figure 1. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. Overall, the Utah housing market is expected to continue growing steadily in the coming years, with most areas experiencing positive price growth through 2024. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. 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. Around 16% of Americans have bad credit. Typical Closing Costs For Buyer in Utah: Find your Closing Costs Obligations. Theyre also willing to waive inspection fees and ignore the banks appraised value of the house. In January 2023, 17.5% of homes in Utah sold below list price, down 27.8 points yearover year. Downtown Salt Lake City properties near the Mormon Temple command a premium, but that isnt the only upscale market in the area. Months supply of inventory: 3 - up from 1 in September 2021. Based on the estimates of seven organizations, the average rate for 2022 is 3.55 percent. Homes that sold above list price likely received multiple offers. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. A housing market bubble starts to form when mortgages are available at low-interest rates, job growth is substantial, and lenders easily avail the loan. At last, home prices reach unstable levels, making it unaffordable for the average or even above-average buyer. When we look at year-to-date median home prices for 2021 and 2022, we can see that most counties also experienced an increase in median home prices. 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. He said over the last five years, home prices have gone up about nine percent each year in. 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. Compared to the third quarter of 2022, average home prices fell in every area other than Summit County, where they rose 0.8%. In January 2023, there were 8,545 homes for sale in Utah, up 82.5% year over year.The number of newly listed homes was 1,952 and up 1.8% year over year. 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. The number of homes sold also decreased in most counties. When it came to selling their home, 86% of sellers used the services of a real estate agent. In the final quarter of 2022, 5,145 homes sold in the areas covered by this report. This was down 45% compared to the same period the previous year and down 27.8% compared to the third quarter of 2022. Why are people moving to Utah? Do not sell or share my personal information. In December, prices were up 24%, just slightly below the largest gain of 27% in June and theres no sign yet of a slowdown. 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. Median listing prices were 3.6% lower than in the third quarter, suggesting that higher financing costs may have created a price ceiling. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. Earlier in 2021, Utah was considered as one of the hottest markets in the country, second only to Idaho. How to List a House on MLS: Learn about various ways of getting on the MLS. Salt Lake City has a track record of being one of the best long-term real estate investments in the U.S. The typical home value of homes in Salt Lake County is currently $529,852, +2.7% from last year (12-month Value Change). With 19,202 homes sold in Salt Lake County, 2021 saw another record-breaking price rise, and it is expected to continue this year as well. Prices were 3.7% lower than in the third quarter of 2022. The market is still highly competitive. The median selling price was $525,000 for single-family homes, up 1.9% year-over-year. Inventory is still low, standing at 3.2 months supply. And with a variety of affordable homes in high-quality neighborhoods, it is a market that is not yet closed to first-time home buyers. 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. But now your energy and utility bills are sky high and youre looking to move on to bigger and better things. 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. Some experts also believe that the 30-year and 15-year mortgage rates could drop to 6.0 percent and 5.25 percent, respectively. NAR Chief Economist predicts that Mortgage rates will continue to rise in 2023, but within two years rate should return to 5.5% or 6% percent., He also anticipates that over the next 5 years, home prices will elevate by 15% to 25%. Carbon County has the least expensive housing market in Utah with a median price of $184,000. And that only puts more pressure on the Salt Lake City housing market. of single-family homes sold was 1798. The city is already home to many new startups. The median price of a home in the United States is currently $519,300. REDFIN and all REDFIN variants, TITLE FORWARD, WALK SCORE, and the R logos, are trademarks of Redfin Corporation, registered or pending in the USPTO. We imagine that youve put years into your house making it into your dream home. https://www.zillow.com/salt-lake-city-ut/home-values/, https://www.zillow.com/salt-lake-city-metro-ut_r395053/home-values/, https://www.bankrate.com/mortgages/housing-heat-index/, https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx, https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx, https://slrealtors.com/wp-content/uploads/2021/01/2021-Housing-Forecast-Report.pdf, https://www.realtor.com/realestateandhomes-search/Utah/overview, https://www.sltrib.com/news/2021/06/24/hyper-hyper-competitive/, https://www.zumper.com/rent-research/salt-lake-city-ut, https://www.realtytrac.com/statsandtrends/foreclosuretrends/ut/salt-lake-county/salt-lake-city/, https://www.ksl.com/?sid=46284050&nid=1426https://www.buildium.com/laws/utah-evictions-process/, https://en.wikipedia.org/wiki/Salt_Lake_City, https://www.deseret.com/utah/2021/9/16/22677951/utah-homes-sales-are-slowing-but-the-market-is-still-red-hot-salt-lake-county-city-housing-prices, http://www.cbre.us/people-and-offices/corporate-offices/salt-lake-city/salt-lake-city-media-center/cbre-releases-2018-salt-lake-city-real-estate-market-outlook, Housing Market News 2023: Today's Market Update, The Housing Market in 2023: Trends and Insights, 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. 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. Experts predict that mortgage rates will continue to climb because of continued inflation, potential recession, and geopolitical tensions. As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Here are a few Utah housing market predictions for 2023 based on the experts forecast. The Utah housing market starts to slow when the properties supply exceeds the present demand. The fees that you are required to pay as part of the rental program depend on how well-maintained the units are. Salt Lake City has seen an increase in housing construction since the economy rebounded. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. 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. Year over year, prices rose in four markets but pulled back in the other three. There has been a gradual decline in homebuyer interest. San Francisco was the most searched for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington and Chicago. People are also ignoring the appraised value and waiving the inspection fees. Theres a slight hope that inflationary pressure eases and mortgage rates fall next year, such that buyers may feel less pressure. Some experts predict that due to low inventory, home prices wont drop in 2023. Current Housing Market Trend 2022: The median days on the market was 39 days, up 13 year-over-year. Salt Lake City sits at the intersection of I-80 and I-15. The average sale price in the fourth quarter of 2022 rose 0.6% from the fourth quarter of 2021 to $604,105. approximately 186,419 people. During the last 12 months the real estate prices in Salt Lake, Salt Lake City increased, looking at the past 12 months. The median price of a home in the United States is currently $519,300.. The states economy is still performing very well, but this is not enough to push the housing market forward at the pace we saw during the height of the pandemic. Record price increases were not confined to Wasatch Front counties; nearly every county in the state saw record increases. To avoid entering into a real estate transaction too early, it is best to wait and time the market. 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. whether homes are becoming more or less affordable. ye votes Vote Now . Home prices have been steadily rising for the last two years. Although paying 1 to 3 percent over the list price is not unusual, you should ask your realtor to come up with a price that is best for you. 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. The housing market has gone through some significant swings since the start of the pandemic in 2020. The bull market that has been in place for quite some time appears to have lost its momentum. Houzeo.com helps you sell your home fast in a slow market by listing your house on MLS. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. Looking at the positive forecast, the annual appreciation rate is predicted to be between 10% to 12%. It took an average of 55 days to sell a home during the fourth quarter. A strong job market and a robust economy have been contributing to the rising housing costs over the past several years. Realtor.com recently named the Salt Lake City region as the expected No. Like any product or service, the price is determined by the relative demand and supply. 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.