Utah Housing Market
Utah Housing Market
Utah Association of Realtors stated that the Utah housing market saw mixed trends last year. While some counties experienced an increase in the number of houses sold and the median sale price, others saw declines for both categories. According to the Utah Association of Realtors, the state saw a 44.9% drop in house sales volume between December 2021 and 2022, with 2,664 homes sold last year. The average home price in Utah was valued at over $505,000 in late 2021. There were a lot of houses for sale in Utah due to the rapid population and job growth which are considered the most important drivers for the Utah Housing Market.
This article focuses on answering possible questions you may have, what you need to know about, what options you may and most importantly help and guide you with decision making. Are you a seller, homebuyer, or someone just curious about the Utah housing market and the factors affecting it? We got you!
Average Home Price in Utah
According to Windermere Real Estate Chief Economist Matthew Gardner, the average home price in Utah in the fourth quarter rose a modest .6% from the fourth quarter of 2021 to $604,105. Prices were 3.7% lower than in the third quarter of 2022.
This January 2023, home prices were down to –3.0% compared to 2022. Selling for a median price of $518,200. The average number of homes sold was down to –34.7% year over year. This January there were 1,769 homes sold while last year were 2,712. The median days on market was 70 days.
Houses For Sale in Utah
There might be a lot of houses for sale in Utah and we don’t know the real reason why homeowners are selling them, right? Here’s the possible reason why:
- Either your family is growing or shrinking
- You’re not happy with where you’re located
- Change in work areas
- Nearing retirement
- House is hard to upkeep
- Needed more cash
- The neighborhood is going downhill
- You want a new one, an upgraded one
- Facing foreclosure
- Emergency or any personal matters you are going through
Currently, housing price forecasters indicate national prices will likely increase 10.4% in 2022, and another 3.4% in 2023. Historically Utah’s rate of growth tends to be slightly higher than national figures. Therefore, we can assume houses that the average home price in Utah will follow this trend.
What’s the average population in Utah?
Utah’s population in 2023 is estimated to be 3.44 million, ranking the 30th most populous and 11th-least-densely populated. Its area is 84,899 sq miles which ranks 13th as the largest in the United States. Utah’s population increased by 109,186 people since the last census of 2020 and this is affecting the Utah housing market.
5 Cities In Utah With The Best Home Appreciation Rates
Utah is known for being a great place to work and raise families. In recent years there has been an overwhelming move in the population in Utah away from rural areas towards the city. This created a greater demand for housing and higher appreciation rates.
- American Fork – has grown profoundly in the last few years. With the highest home appreciation rate of 17.81%. It has exploded because of an increased in jobs and improved infrastructure.
- Salt Lake – the largest city in Utah that comes in the 2nd place. The home appreciation rate is 14.81%. The local Utah University brings many residents from out of state, providing opportunities for employment after graduation. It has an active community and hosts a variety of events and entertainment showcases
- North Salt Lake – It has a 13.92% home appreciation rate, with the expansion of Salt Lake’s economy many people find a home in North Salt lake. The city has a significant increase in small and medium businesses.
- Orem– Family-oriented Orem uses its location to attract new residents. 13.13% is the home appreciation rate and the 5th largest city in Utah. The local Utah Valley University’s recent conversion from a 2-year junior college to a 4-year university brought many more students to the area.
- Provo – is the largest City in Utah. Provo has a 12.72% home appreciation rate. The community is very supportive of local businesses and artists. Once graduated a lot choose to stay in Provo as it offers employment opportunities in large companies.
Does Utah have good job opportunities?
Yes. It gives you an opportunity for job security, with an unemployment rate of 2.1%. States economy has diversified. Also, it has a strong technology sector where you can get high-paying jobs. Utah’s unemployment rate is one of the lowest in the country and employers are struggling to retain the staff they need. Job growth is one of the factors affecting the Utah housing market.
Why do a lot of people choose to move to Utah?
Utah is the home of 5 national parks and 43 state parks, many are right around Salt Lake City. Those moving to Utah consider the statewide scenery and abundant natural beauty to be just enticing. Also the moderate cost of living.
The top reasons why a lot are moving to Utah are the job, affordability, and quality of life. According to the world population index, Utah ranks in the middle for affordability in the U.S., The state economy is the major factor that brings new people and Utah’s economy ranks among the best in the nation.
Here are the Top 10 Safest Cities in Utah 2023:
- Saratoga Springs
Is the Utah Housing Market bad?
The Utah housing market is worse for affordable housing builders. Utah’s housing shortage and the affordability crisis are expected to get worse as the market constricts. The United States housing market is in the midst of a painful contraction after what 2022 brought.
It’s tough news, especially for workers or homebuilders as demand dries up and prices begin to drop. House prices remain comparatively higher than they were even just 3 years ago amid today’s higher interest rates as the Federal Reserve continues to wage its war against record inflation levels. If today’s market is brutal for a homebuilder, it’s an even more challenging environment for affordable housing builders that are already trying to push the envelope when it comes to keeping costs low for renters while also ensuring projects are financially feasible.
Is Utah having a recession?
Historically, it has a long-term employment growth rate and seldom is unemployed. While the definition of a recession is a national concept, the state Revenue Assumptions Working Group loosely agrees that less than 1% job growth would put the state in a recessionary environment. There’s no formal or accepted definition of a state recession, but if job growth falls below 1%, that indicates weak economic conditions associated with a national recession, So, while a recession is unlikely, economists say, better times may still be a year off
What Is a Housing Market Bubble?
It refers to a steep incline in prices with increasing demand and limited supply. The demand continues to rise as more buyers jump into the market. Investors like flippers and wholesalers also show up and snag investment properties. At last, home prices reach unstable levels, making it unaffordable for the average or even above-average buyer.
Does Utah have a housing bubble?
Utah had only two housing bubbles: a serious one during the Great Recession when home prices dropped over 20% for 16 consecutive quarters, and a weak period during the 1980s when prices went down for 9 consecutive quarters. Wood said a similar decline is extremely unlikely in Utah over the next 2 years.
What is causing the Utah housing crisis?
Utah may not be available for millennials or to anyone in the middle class in the years to come. Housing prices have increased rapidly within the past year and income is not keeping up with the trend, causing a house affordability crisis in Utah and the rest of the nation.
Why is inflation so high in Utah?
Regional changes are a key reason Utah’s 10.4% inflation rate is almost 2% more than the national average. The Utah housing market is tight and there aren’t enough houses for the number of people moving into the beehive state. There is also a tight job market with the unemployment rate sitting at 2.1%. Due to Inflated home prices, low inventory, and high mortgage rates.
High-interest rates have a significant impact on the Utah housing market. Here are some of the ways in which high interest affects it.
- Increased Borrowing Cost – high-interest rates will make it more expensive to borrow money to buy a house. This can result in higher monthly mortgage payments which can reduce the money Utahns are spending on housing. Resulted in demand for properties may decrease and prices may decline. The rising interest put downward pressure on home prices.
- Reduce Affordability – When the interest rate is high it may be difficult for some people to qualify for a mortgage and afford a house. It can reduce demand for homes which can drive down the home price.
- Reduce Home Sales – High-interest rates can lead to a decrease in the number of home sales. Buyers may delay buying a home until interest rates decrease. It can also lead to a decrease in the overall level of the Utah housing market.
- Impact on Housing Construction – It can impact the construction of new homes. Since high-interest rates increase borrowing costs for developers which will reduce the amount of new construction. This can result in a decrease in the supply of housing which can move the price up.
To sum it up, high-interest rates can have a significant impact on the Utah housing Market because it reduces demand for homes, decrease affordability, reduce home sales, impacting new construction, meaning it is important for buyers, sellers, and developers to monitor interest rate trends and evaluate their impact on the housing market.
Utah Housing Market Forecast 2023
The Utah housing market has boomed during the pandemic. It has emerged as a desirable market. Home prices are soaring and many people from California migrate into the state leading to an imbalance between supply and demand. Some experts’ expectations are prices to be a decline in 2023, depending on what happens with interest rates in 2023.
A recent report on the forecasts for the Utah 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 Utah housing market, with interest rate hikes, falling home sales, and dropping home prices.
Are the houses for sale in Utah expensive?
The average home price in Utah increased from $475,000 in 2021 to $476,824 in 2022, a 0.4% increase. Year-to-date average home price in Utah increased by 15.1% from $443,036 in 2021 to $510,000 in 2022
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%.
Is now a good time to sell a house in Utah?
In our opinion, it is a good time to sell a house in Utah. The state doesn’t have enough inventory available to meet the demand of people who want to buy homes here, so buyers are anxious to see new houses for sale in Utah.
8 steps on selling a house in Utah when you listed it with an agent
- Find a Real Estate agent – Selling a home is not that easy. It may require a considerable amount of time and expertise to get a great outcome. If you want to sell it for the best price and avoid the stress it may cause you selling then you need to find an agent who can help you. We can recommend someone who can help you all the way. Someone who’s professional, with experience, knowledgeable and truthful in their communications.
- Deciding when to sell – Nationwide, the homeowners’ best time to sell their house is the first half of May but remember the larger economic factor such as unemployment that will impact your house value. Learn to look at local trends when deciding when to sell or list them. When the Federal Reserve raises its borrowing rate, it impacts mortgage rates. The higher the interest rate, the fewer buyers might want to buy the house.
- Pricing your home – Utah housing market is one of the things you should consider when pricing your home if you decide to list it. Pricing your home is very crucial if it may take too long to sell potential buyers may think there were hidden issues and you want to avoid that. Now if you priced the property outside range of the prices on comparable properties then you may not find a buyer.
- Preparing, marketing, and showing your home – You may need a few months for repairs to prepare your house to go on MLS. You should also try to clean and declutter your home so prospective buyers can see the living areas. Once the house is ready estate agents must market it properly, they could suggest hiring a photographer to take pictures for listing and suggest hiring a staging company. The properties’ presentation in the market also attracts potential buyers or investors.
- Fielding offers and negotiation – Once an interested buyer is ready to make an offer, they will talk to your agent to see if you’d be receptive to the price they are offering. If your agent thinks what they offered is acceptable, the agent then will prepare the paperwork. If everything is agreed upon and nailed down, the buyer’s agent will write it up in a formal purchase agreement.
- Appraisal and inspections – This is to determine the value of your home which can be impacted by its condition but also hinges the factors like the local real estate and comparable properties in your neighborhood. Whereas a home inspection focuses just on a particular property and its major components
- Paperwork and required Utah disclosure – Seller disclosures are forms that you complete that tell a buyer about any known issues and problems in your house.
- Closing process – The final step happens during the signing of the closing documents. Both parties can meet in person in the real estate attorney’s office or the title company’s office. In some states, the paperwork can happen in the presence of a notary. You can then return the documents to the closing agent before or on the closing day. Make sure you explain to the buyer all the details in the paperwork since the fine print might have a related impact in the years to come. Also, confirm that all the agreed terms and the interest rate are correct and dispute any illegitimate fees. After signing the paperwork, the buyer makes all the payments required for homeownership.
After the 2022 sudden spike in mortgage rates and the subsequent slowing of the Utah housing market. People are wondering what to expect this year.
Can I still sell my house for cash?
Houses for Sale in Utah are maybe a lot but it isn’t that easy to sell a single house. It depends on your situation if you need to sell it fast and you need to use the money asap. You can sell it to a cash buyer who acquires the rights to the asset and hand you over the cash. Closing costs are covered by them and can process closing in as fast as two weeks with no service charge.
Advantages of living in Utah
- Cost of living – You can easily find a place to settle and continue life. Rural areas are more affordable since you can fix yourself the extensive size of land at lower rates or choose to live in proximal cities with low real estate and easy grocery costs.
- The climate is suitable for every season – It has a commendable spot on the states worth moving to, with a dry continental climate supporting all four seasons throughout the year. Locals enjoy the warmth of the summer and cold winters. The only problem you may have to face is during snowfall as it hinders the routes through the mountainous passage.
- The crime rate in Utah is low – It is one of the safest states and often rates as the top 10 safest places to live in the US. With a mix of diverse cultures, people believed more in their cultural values. One of the major factors to keep crime rates is religious background.
- Numerous Educational Opportunities – Utah is a home for many national and international students who are there for higher education.
- Economically stable -The state recorded 70% growth in tech jobs while the unemployment rate is as low as 3%. The rate is even less in some parts of the state. You have a lot of opportunities in the micro business or startup business.
Disadvantages of living in Utah
- You may be struck by boredom – The state is vast in terms of landscape and mountain ranges. It is usual to feel lonely when you have nothing to do, even during winter.
- Staggering home prices are concerning – Even if the average home price in Utah is lower than the other states, the rates have spiked for the few years in the area. You sure can find a home within your range you just need a little legwork.
- Taxes are a major challenge living in Utah – Utah is the 25th highest rate in the US for taxation. You need to pay 5% tax on income, up to 9% on sales, and 0.66% for tax property. You have to be ready when you’re having a business plan to pay further taxes. What seems too little adds too much to your bank statement.
- Driving is another issue – There aren’t many speed bumps in Utah. It is usual to see people driving faster than 100 miles per hour in open spaces. Being new to the state you would need to stay out of the local drives as they can easily be spotted driving way faster than you.
Besides considering the Pros and Cons of Living in Utah, we started talking about how the Utah housing market, the average home price in Utah, and its important drivers. There are so many things you need to take into consideration houses for sale in Utah are for sale for a reason. Not all houses are an investment when you’ll end up losing it in the end.
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