Utah’s real estate market is moving toward a buyer’s marketplace. The data reveals an increase in closed sales in November and the year-to-date. This indicates a more excellent supply of homes available to buyers, giving them more choices and increasing their bargaining ability.
Although the median price of sales shows a slight rise in November 2023 compared to the same time in the previous year, year-to-date information shows a decrease. The median sales price has decreased by 4.9 percent, which indicates that there could be a decrease in the value of homes during the year. Nevertheless, considering other variables like market demand, interest rates, and economic conditions that influence the price trend is essential.
The current data does not indicate an imminent market crash. While there has been a drop in closed sales and an increase in median sales prices, tracking these changes over a longer time frame is crucial. External factors such as economic stability, interest rates, and job markets can significantly impact the housing market’s health.
How do you feel about the Utah housing market currently performing?
Here is the information for November, as provided by the Utah Association of REALTORS(r).
November 2022 Vs. December 2023
- Closed Sales 2,708 in comparison to. 2,588 (-4.4 percent)
- Median Sales Price: $484,900 vs. $490,000 (+1.1%)
Year-to-Date 2022 vs. Year-to-Date 2023:
- Closed Sales 42,218 against. 35,792 (-15.2 percent)
- Median Sales Price: $510,000 vs. $485,000 (-4.9%)
In light of the shift to a ‘buyer’s market’ and a slight drop in median prices for sales, it could be the perfect moment for buyers to get into this Utah home market. The increased inventory gives buyers more options, and the lower median prices could offer buyers the chance to purchase. However, it is essential to do thorough research, evaluate their financial circumstances, and keep up-to-date with market trends before making any decision.
Utah Real Estate Market Report
Here’s how the housing market did, as per UtahRealEstate.com.
- In October 2023, about 2788 houses were listed on MLS, up 3.4 percent over last year.
- No. of homes sold to single-family buyers was 2060.
- No. of homes that were sold to multi-family households was 728.
- The average number of days that market was 34, a rise from 31 days in the last month.
- The median price for sales for single-family homes was $540,000, up 1.5 percent over the previous year.
- The median sales price for multi-family houses was $410,000, an increase of 1.2 percent over the previous year.
Utah Housing Market Forecast for 2024
Zillow’s data suggests a slight decline in the average value of homes over the last calendar year. However, the rapid pace of the market, with homes pending in about 27 days, indicates a steady demand. The vast number of houses available for sale (11,962) and the constant increase in newly listed properties (3,088) give buyers a wide selection of choices for prospective buyers.
The median ratio between the sale and the list of 0.995 indicates that homes sell at or near their list price. This can benefit buyers and sellers since it suggests that the market is balanced and real-time pricing is crucial. The median sales price of $481,703 and the median list price of $556.633 provide insight into the dynamics of pricing in the market.
The percent of sales over and below the list price (26.1 percent and 53.0 percent and 53.0%, respectively) indicate a diversified environment, which suggests possibilities for negotiation and different sellers’ strategies.
Utah’s real estate market continues to show changing trends, with Zillow providing essential statistics for November 2023.
- Median Home Valuation: $502,647
- Annual Changes: -1.2%
- Day to Pending 27 days
Listings and Inventory
- For Sale Inventory (November 30th, 2023): 11,962
- Latest Listings (November 30th, 2023): 3,088
List and Sale Prices
- Median Ratio Sale to List (October 31st, 2023): 0.995
- Median Sale Price (October 31st, 2023): $481,703
- Median List Price (November 30th, 2023): $556,633
Market Dynamics
- Percentage of Sales over the List Price (October 31st, 2023): 26.1%
- Percent of Sales under the Price of List (October 31st, 2023): 53.0%
Utah Areas Proposed for 2024 Home Price Growth in 2024
Based on the information about the areas in Utah, There are distinct expectations of home price changes by 2024. The regions of Vernal, Price, Heber, Logan, and Ogden exhibit a variety of tendencies in their expected changes in home prices.
Vernal, UT
The area of Vernal, Utah, is a metropolitan statistical area (MSA) where home prices are set to experience a significant expansion. Based on the data analysis, the median prices for homes are projected to increase steadily, with an increase of 0.9 percent on February 29th, 2024, to a staggering 3.4 percent by November 30th, 2024. This upward trend suggests a thriving and robust market for real estate in Vernal.
Price, U.T.
In the same way, Price, Utah, another MSA in the state of Utah, is predicted to experience significant increases in the cost of housing in 2024. Despite a modest reduction of -0.1 percent on December 31st, 2023, the market is expected to recover, revealing significant growth of 2.9 percent by the close of November 2024. The resurgence is indicative of a robust housing market Price.
Heber, UT
Heber, Utah, is being considered for potential price increases in homes in 2024. While there may be a slight decline of -0.5 percent on February 29th, 2024, The market is predicted to rebound and grow to a potential increase of 2% by the end of November 2024. This suggests a bright future for homeowners and investors in Heber.
Logan, UT
In the final analysis, Logan, Utah, is yet another area with promising prospects for the real estate market. Although the market saw a small drop of -0.5 percent on February 29th, 2024, it is predicted to bounce back by an increase of 1.7 percent by November 30th, 2024. The real estate market in Logan appears robust and offers potential for individuals involved in transactions with property.
Ogden, UT
The market in Ogden, Utah, part of the metropolitan statistical areas (MSA) within the state, and the real estate market shows resilience and growth potential by 2024. The information suggests a moderate growth of 0.2 percent on December 31st, 2023, and an increase of -0.1 percent on February 29th, 2024. But the market is likely to rebound, with an impressive growth of 1.3 percent by November 30th, 2024. This suggests a steady and positive direction for the Ogden home market.
Provo, UT
Provo, Utah, is another MSA in which real estate is predicted to show positive signs in 2024. With a steady rise of 0.2 percent at the end of December 2023 and a slight increase of 0.1 percent on February 29th, 2024, Provo’s market is predicted to keep its upward momentum with a projected overall increase of 0.8 percent by November 30th, 2024. Provo’s housing market is stable and has growth potential.
Cedar City, UT
Cedar City, Utah, is also one of the areas where prices for homes are predicted to increase by 2024. Even though the market is down -0.1 percent on December 31st, 2023, and a more significant reduction of -0.5 percent on February 29th, 2024, The market is expected to rebound and rise 0.8 percent by November 30th, 2024. This suggests a substantial market for real estate that is thriving in Cedar City.
Salt Lake City, UT
Salt Lake City, a significant urban area in Utah, is expected to see an average increase in the cost of homes in 2024. The market is stable, with no change on December 31st, 2023, and a slight decline of -0.4 percent on February 29th, 2024; it’s expected to recover, with a slight rise of 0.3 percent by November 30th, 2024. Salt Lake City’s real estate market is still a great place to appreciate.
George, UT
St. George, Utah, is where the real estate market is anticipated to rebound from a drop in 2024. Despite a decline of -0.3 percent on December 31st, 2023, and a more significant decline of -1.2 percent on February 29th, 2024, The market is predicted to be stable, displaying a growth of 0.1 percent by November 30th, 2024. Saint. George’s home market has shown its resilience and the potential for a recovery.
Are home prices dropping within Utah?
The data overall suggests divergent trends, with certain regions expecting price increases while others anticipating decreases. While Vernal, Ogden, and Provo forecast positive growth, regions such as St. George and Cedar City expect slight declines. This indicates that although certain regions could experience prices dropping, the market overall is marked by volatility and a wide range of price fluctuations.
The predicted price fluctuations do not guarantee the imminent crash of the housing market. Instead, the variances in forecasts across regions show the complexity and regional characteristics of the real estate market. It is crucial to consider other factors, like the economy’s stability and trends across the country, to analyze the market’s health and potential risk.
Why are Home Prices so high In Utah?
Utah has the nation’s highest employment growth rate, the lowest unemployment rate, meager mortgage rates, low mortgage delinquencies, and low local and state taxes. These factors have helped push Utah into the top spot among states in the bank’s Housing Heat Index for the fourth quarter of 2020. Utah’s home prices rose by 15.39 percent over the 12-month period that ended on December 31st, which was third in the U.S. states, according to the Federal Housing Finance Agency.
Since 1991, Utah’s Q1 HPI has been up by 414.95 percent. Idaho is ranked as the top state in the FHFA State Price Indexes. The HPI is a general gauge of the change in single-family home prices. It is calculated by looking at mortgage transactions for single-family homes bought or secured via Fannie Mae or Freddie Mac. According to a Bankrate review of Labor Department data, Utah has experienced the second-highest employment increase in the United States from December 2019 through December 2020.
Even though inventory is more significant than it was for the last couple of years, it isn’t enough to tackle the issue in Utah for a long time. There are not enough homes. The number of homes built soared by a whopping 80% in Utah by 2021, putting Utah in the spotlight of national media for its boom in housing. It had a negligible impact on the state’s housing crisis but was not enough to erase the issue.
Rapid population growth and job development are two main drivers behind the housing market in Utah currently. According to real estate agents from the local area, there aren’t enough single-family homes available to meet the growing demand for housing. A balanced market has 6 months of housing inventory and homes, so when we stop listing houses for new listings, we’d have around six months left before running out. At present, Utah is down to around four weeks of houses.
So, finding the perfect home in this marketplace is a struggle for potential buyers, making it highly competitive. Utah’s job market is among the most remarkable in the nation. It has experienced the fastest-growing jobs market in the United States over the last decade. The population of Utah has grown by 18.4 percent in the past decade, and it is a highly fast-growing nation. It’s currently the 30th most populated state, with a population of almost 3.28 million, per U.S. Census Bureau data.
Many Californians are moving to Utah, putting additional stress on supply. The immigration of people towards Utah’s Salt Lake metropolitan area is currently at an all-time high. The problem is that demand is so high that inventory hasn’t reached the level that suggests that there is enough quantity. According to local real estate agents, many are coming to New York, Boston, Vermont, Austin, Texas, and other cities. They also believe that those buying their first home in Utah are excluded from buying homes due to those moving from other states.