11 May Utah Housing Market Forecast in 2022
Thirty five percent of home purchases made in 2021 were by first time home buyers.
As more and more homebuyers enter the scene, Utah has become a very popular destination to settle down leading to more of a seller’s market in Utah vs a buyer’s market.
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.
Utah Housing Market Overview and Statistics
- A single-family house is selling anywhere from $550,000-$650,000 in Salt Lake County.
- Average time for a house to be on the market is 16 days, though most of the time it sells in the first 5 days.
- Houses in the Sat Lake City area are selling $30,000- $100,000 above the asking price.
- Salt Lake City was named one of the fastest growing housing markets in the country.
- 1,260 single family and multi-family homes were sold throughout Salt Lake County in March 22.
- Utah homeowners are paying $1,200 more on monthly mortgage payments than last year.
- Officials say that the average price per square foot has gone up 22% from $208.33 to $254.62.
- Just 2,778 Utah homes were for sale in February 2022 compared to the 9,000 houses during the same period in 2020.
- A generation of millennials in their late 20’s and early 30’s are coming of age and getting ready to buy their first house.
- 55,588 houses were sold in Utah in 2021.
- The median price for a house in Utah in 2021 was $442,200, 24.6% higher than the previous year.
- Realtor.com expects that Salt Lake City will lead the nation with a 23.7% combined growth in sales and prices in the next year.
- According to Realtor.com sales will rise 15.2% and prices will increase by 8.5%
- 3,051 homes were sold in Utah in January 2022, down 7.2% for January 2021.
- In Utah Summit County has the most expensive housing market with a median sale price of $1,325,000.
- Carbon County has the least expensive housing market in Utah with a median price of $184,000.
- The median price for Salt Lake County is $500,000 which is up 27.6% from 2021.
- Utah’s population has grown by 18.4% over the last decade making it the fastest growing state in the United States.
Why are houses so expensive in Utah? Why are people moving to Utah?
Utah is in a sellers’ market currently, which means it’s 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. People are also ignoring the appraised value and waiving the inspection fees.
People are moving to Utah because of the low cost of living, low crime rate, great skiing, beautiful landscape, and amazing schools. Utah currently has one of the highest population growth rates in the US.
Salt Lake City is the number one spot for this year’s top market list because of its healthy economy and low unemployment rate. People have flocked to Utah especially for the steady stream of STEM related fields of work available.
Is Utah in a Housing Bubble and will it pop?
Tonya Basset, head of Homie’s buy side agent team doesn’t 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. Basset says that if a crash does happen, it will happen more gradually than the crash in 2008 because of tighter lending standards and a dramatic decrease in inventory. 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 you’re getting into, and make sure you get an amazing agent.
Dejan Eskic wouldn’t say Utah is in a housing bubble either, instead he explains that Utah has a large demographic of 20 to 30 year olds “ready to get out and live their life” which is why Utah is seeing this housing shortage at the moment. Eskic doesn’t see an end to the rising demand of houses in Utah though interest rates could cool that demand just a little bit.
Will House Prices Go Down in Utah 2022?
After several years of low interest rates, Americans overall will see rates trend up throughout 2022. Nerd wallet expects rates for fixed-rates mortgages to rise and then fall to about a 4% increase and stay steady there. Utah’s median house price will continue to rise in 2022 especially because of buyer competition and everyone’s urgency to get ahead of increasing interest rates. Realtor.com predicts that Salt Lake City’s median sale prices will rise 8.5% in 2022. Listing prices, rents, and mortgages are all expected to rise.
Experts say as long as the demand for houses outweighs the supply of houses the rise of house price will continue. Builders aren’t helping the situation as they permit for homes at record levels but can’t complete the houses because of labor and material shortages.
Should You Sell Your House Now in Utah?
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- Utah’s population is far outgrowing the housing supply and the Utah housing market will continue to be a seller’s market until the supply of houses can keep up with the demand for houses.
If you’re planning to sell your house and buy a new one in Utah this year, you’ll need to be ready for a vigorous exercise in patience and decision making. Sellers will need to have their homes looking better than ever before to attract the best of the best.
How Buyers and Sellers Can Navigate a Hot Utah Housing Market
Buyers need to be prepared to go above and beyond to get the house of their dreams. People nowadays are putting down thousands in non-refundable deposits and offering $30,000-$100,000 above the asking price. They’re also willing to waive inspection fees and ignore the bank’s appraised value of the house.
For sellers, now is the perfect time to make sure your current house is the most energy efficient, which means there’s 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. As more and more families consider sustainable options for cost efficiency and health, making your house more energy efficient will up your resale value and make your house more valuable in the buyer’s eyes.
Energy efficiency is about more than just using less energy, it involves making the most of what you do you use and avoiding waste. The benefits of an energy efficient house is that you’ll save substantial amounts on your utility bills. Your house will be more comfortable for you and your family. An energy efficient house has a higher resale value than just a regular house. You will reduce your carbon footprint and your water consumption. An added bonus of an energy efficient house is less noise pollution especially if you live in a big city.
All these home improvement changes don’t have to happen in a year. Take your time and be strategic about your home improvement choices to ensure that smart energy technology is going into your home. Selling your house won’t happen in a day, and in the current market you’ll be hard pressed to find another house in the time it takes to sell your house so be patient and take your time to make those home improvements the absolute best and go ahead and enjoy those improvements while you’re at it.
Should You Stay or Should You Go?
We imagine that you’ve put years into your house making it into your dream home. But now your energy and utility bills are sky high and you’re looking to move on to bigger and better things. Do you sell your house and lose everything you’ve put into it? Or do you keep it and make it more energy efficient and comfortable for your family?
All in all, we believe that you should analyze your home’s weak spots and invest in energy efficiency before you think about selling. Here at Eco Elements, we specialize in helping you find and fix those energy inefficiencies so that you’re more comfortable in your home. We run an energy audit where we go through your house and take a look at your bills to get a personalized list of energy recommendations.