Over a given period, the median house price is the middle sale price among all homes ranked from highest to lowest. Home values are up 30 percent in the last year alone, an increase of $102K on average. The US real estate housing market is experiencing a major shift. Experts have said it would likely take an economic sea change sweeping layoffs, foreclosures and a dismal job market to drastically disrupt Utahs housing price trajectory and send statewide prices spiraling downward. 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. Salt Lake City's population is also very young. By subscribing, you acknowledge and agree to KSL.com's, Housing market: This Utah metro saw nation's biggest drop in sales, Why two housing experts disagree on how much Utah home prices will drop in 2023, Housing market dominated by white, older buyers squeezing out more first-time homebuyers, Can Utah plan its way out of its housing crisis? Rapid population growth and job growth are the two most important drivers of housing demand in Utah right now. 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. Everyone enjoys their own space, and a growing family often requires more space. An average of eight mortgage rate forecasts shows the 30-year mortgage rate rests at 3.1% in 2021 and is expected to climb to 3.6% in 2022. 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. Home prices have been steadily rising for the last two years. You should also try to clean and declutter your home so prospective buyers can see the living areas. Maybe a small increase, but not necessarily something that would register for me., As for how many investors are flipping properties, about 16% of Utahs market is investor driven, Eskic said, with about 25% in Salt Lake County. Financial market participants anticipate the Fed raising its target Fed funds rate by 175 to 200 basis points from current levels. Also, get secure & powerful listing using Houzeo Mobile App. Downtown is the oldest district in Salt Lake City, Utah. A typical mortgage borrower has excellent credit, substantial equity, and a fixed-rate mortgage with a rate well below 5%. 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 average rent for a 1-bedroom apartment decreased by -7% to $1,375, and the average rent for a 2-bedroom apartment decreased by -1% to $1,633. While the city limits encompass 110 square miles, downtown runs nearly two miles from east to west and nearly two miles north to south. If The Housing Market Crashes What Happens To Interest Rates? 73% of Sellers said they would use the same agent again. However, if a regional market sees sweeping price cuts, it usually means things are beginning to cool down, as Fortune put it. 2020's annual growth rate was 11.8%. You can sell your house to cash buyers, IBuyer, or anyone else. The median selling price was $396,000 for multi-family homes, up 2.9% year-over-year. These rates have priced many buyers out of the market as theyre at record highs in more than 20 years. Is Salt Lake City going to be a sizzling real estate market for investors in 2021? Get to know about who pays the buyer agent in a for sale by owner transaction. Theres a strong demand for homes across various demographics. Many buyers are backing off amid skyrocketing home prices,surging mortgage rates,high inflationand afaltering stock market, Redfin reported. 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. Motivated sellers are beginning to temper their expectations that buyers will pay just about anything to lock in a home. Hes also the host of the top-ratedpodcastPassive Real Estate Investing. Ogden was third with rent climbing 15.7%. The data is provided by UtahRealEstate.com, the leading provider of real estate technology in Utah and one of the largest Multiple Listing Services in the United States. Although Utah will not see a recession, job gains are expected to slow down. 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. Investors like flippers and wholesalers also show up and snag investment properties. They also need to prioritize preserving existing affordable housing, Eskic said. Buyers might consider a mortgage with short due dates and high payments. California is experiencing an incredible divergence from its ideals. Thats according to the latest research released Wednesday by the University of Utahs Kem C. Gardner Policy Institute in a report titled the State of the States Housing Market. Economists believe the housing market will slow down but not crash soon. If you are a homeowner that lives in an area where home prices have started to rise. 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. The number of mortgage applications received compared to the previous year. As the Fed attempts to control inflation by increasing mortgage rates. 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.. The countrys economic power directly affects the housing markets in the US. With less disposable income, more layoffs, and few income opportunities, homebuyers resist buying a house. Jeffrey D. Allred, Deseret News The median sale price was up 5.6% in September 2022 Y-O-Y, but the number of homes sold dropped 26.7%. Compare that to January 2019, when it was just below $300,000. 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? Now, the Salt Lake City metro area is seeing significant declines in sales activity from a year ago. The total fertility rate for the United States hovers between 1.8 and 2.1 depending on the source you want to believe. 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. If youre not planning to stay in the real estate property for a long time, do not buy it. By researching and structuring completeSalt Lake City turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability. A housing market bubble refers to a steep incline in prices with increasing demand and limited supply. There has been a gradual decline in homebuyer interest. Mortgage Interest rates significantly impact the current Utah real estate market. 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. There are still not enough houses. According to real estate database Redfin, 12% of homes for sale had a price drop during the four weeks ending April 3, up from 9% in 2021 and the highest share since December. The rapidly growing state of Utah was already facing a housing shortage before the COVID-19 pandemic hit and put it and other states in the West, like Idaho, on the national map as appealing destinations for Americans set free by remote work. Also, theres no way that they buy land, get regulatory approval, and increase the supply quickly. Affordability issues may impact rapid price increases in 2022, but we may still see another year of a double-digit increase. In Salt Lake City, 45.8% of homes for sale saw price cuts in May. The median home price increased from $475,000 in 12-2021 to $476,824 in 12-2022, a 0.4% increase. The December national unemployment rate continued to decline, registering 3.9%. 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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. Selling FSBO is more popular and high-tech than ever. Housing Crash coming to YOUR CITY in 2021? Moodys says these cities may see prices drop up to 10%. In May, 47.8% of Provo sellers slashed their list price. Higher borrowing rates, combined with the historically high home prices, have priced out over 70% of Utah households from affording the states median-priced home. 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. This is juxtaposed with the 45% pricing increase the U.S. housing market saw between December 2019 and June. As of January 01, 2022, the average rent for a 1-bedroom apartment in Salt Lake City is currently $1,375. 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. South Salt Lake had the fastest growing rent, up 20.2% since this time last year. 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. For a borrower, multiple types of mortgages are available such as adjustable rate mortgages (ARM), conventional loans, fixed-rate mortgages, and government-sponsored. Heres why that matters. New housing in Vineyard is pictured on Wednesday, Aug. 11, 2021. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. The overall cost of living in Utah is cheaper than the nation overall, and it is far cheaper than California, so many choose to relocate here from the high-cost states on the coast. Heber: The housing market in Heber is expected to remain relatively stable, with modest gains of up to 2.2% by January 2024. Long-term demographic and economic growth has generated rapid increases in housing prices in Salt Lake County. For renters, these relentless price increases mean the path to ownership has narrowed even further. The states economy has proved to be one of the nations best in reemploying workers as officials continued to actively encourage those drawing unemployment benefits to seek work in sectors less damaged by the pandemic. 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. Heres how these Utah markets compare to other top 10 regional markets that saw the biggest shares of price cuts in May, according to Redfin: The increase in price drops is a big indicator that the housing market is taking a turn and buyers have found their limit. These renovations may inflate the homes value. Is Salt Lake City a Good Place For Real Estate Investment? In 2019, the median priced home was already out of reach for about 63% of renter households. 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 pricing momentum will weaken, but another year of double-digit increases is possible; expect a 10% to 12% increase, resulting in an additional $50 million in commissions. Were seeing a pretty consistent amount of cash buyers we would have seen prior. As a result, there are chances that the housing supply will remain low. As a result, there is no threat of a foreclosure crisis. The housing market refers to properties bought and sold directly to buyers or through real estate brokers. Prices continued upward in 2021, and now more than 50% of Utah households cant afford to buy. It is important to select how you want to sell your house. Average housing price growth per year in Utah is around five percent . It's leaving potential home buyers to question if they should invest in property now or later. 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. Buying a home might not build equity as quickly as expected. Based on the data provided by Zillow, here is a forecast for the Utah housing market. Let us look at the price trends recorded by Zillow over the past few years. Housing Market Predictions 2023: Will Home Prices Drop in 2023? Since 1996, housing prices in Salt Lake County have increased at an average annual rate of 5.1%. St. George: Despite some minor fluctuations, St. George is expected to continue to experience positive price growth, with gains of up to 0.9% by January 2024. 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. ATLANTA U.S. home prices fell for the sixth month in a row in December, as rising mortgage rates pushed prospective buyers out of the housing market, according to the latest S&P CoreLogic Case . Twenty-four of Utahs 29 counties had double-digit gains. But In the long run, the sellers market will continue. However, geography limits how and where homes can be built. The average home price in the U.S. was $701,989 in September 2022 (including existing homes, new builds, single-family homes, condos and townhomes). 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