Recently it’s been an unpredictable stretch in the real estate world, and the 2022 Utah housing market is likely to have many surprises. Many people are gearing up for a summer of buying and selling homes, so here’s everything you need to know about Utah’s current real estate market and what you can expect the next several months to look like.
Typical Housing Market Trends
Traditionally, any given housing market follows a steady curve that stays about the same year after year. January and February are slow months, with very few home sales. Spring typically increases homes on the market as buyers and sellers start becoming more active. This uptick in home sales often begins in mid-March and peaks around mid-summer. The number of real estate transactions slows again in the fall as school starts and holidays are approaching and generally remains low until they pick back up the following spring.
Impact of COVID-19 on Real Estate
The last three years of the Utah housing market have been anything but typical. Major changes, primarily spurred by the COVID-19 pandemic, continue to raise home prices and drive competition. Here’s a brief overview of what has caused the significant price increases over the last couple of years.
2020 started as a normal year in real estate. The winter months were slow, and many houses prepared to be listed as spring came around. But then, as many listings became active, things became very uncertain. Schools shut down, plans got canceled, and the number of home buyers dropped drastically. Sellers pulled their houses off the market, dropping the inventory to almost zero.
With so few homes being sold, the Federal Reserve lowered interest rates drastically to incentivize people to buy houses. Inventory remained low, but buyers came out of the woodwork. With few houses and many people wanting to buy them, the competition ran rampant, and home prices shot through the roof.
House prices in Utah continued to rise, and 2021 saw a record-breaking price increase of 27 percent. That kind of increase was previously unheard of. The average home along the Wasatch Front cost $438,792 in 2020, and by the end of 2021, that price had risen to $556,146.
2022 Utah Housing Market
As we enter 2022, prices remain high. There is an existing housing shortage across the entire state, with more people looking for homes and apartments available to rent or buy. While experts expect home prices to continue rising, the rate of increase should slow. Interest rates will rise throughout the year, which should help home prices stabilize.
The Salt Lake Board of Realtors predicts fewer homes will sell in 2022 than in 2021. Rising interest rates and few houses on the market present a challenge for buyers, so it’s a good idea to have a trusted real estate team on your side to help you navigate the ever-changing market.
The housing market can be volatile and unpredictable, but what we do know is what things look like currently. Here’s a look at current real estate numbers in Salt Lake City, Utah:
- There were 1,107 new listings in February, compared to 1,248 new listings in February 2021.
- The median sales price has gone up 24.9 percent in the last year.
- Homes are selling faster than ever, with an average of 18 days on the market.
- Single-family homes are selling better than condos or townhomes, likely because buyers want more space now that many people are working from home.
- Homes are still selling for an average of three percent above the asking price.
Is Now a Good Time to Buy or Sell?
Sellers naturally want to sell their houses at the right time when the prices are the highest, and buyers want to buy when housing prices are low. There’s nothing worse than buying a house at a peak only to have the prices drop drastically soon after or selling your home for a low price and then realizing a year later that you could have made $150,000 more if you’d waited to sell.
But trying to time the real estate market just right is like playing a game of chess with a blindfold on—it’s difficult and doesn’t work well. Many people are afraid to buy now because they fear Utah is in a housing bubble and that they’ll buy a house only to have the price plummet, which happened in the 2007 housing bubble and subsequent bubble burst in 2008.
The good news is that experts say there is no indication that Utah is experiencing a housing bubble, and no pop is on the horizon. Buying or selling a house in this current market can be tricky, but don’t put it off until interest rates are too high.
The housing shortage across the state remains, so your home price is unlikely to drop drastically. It’s also unlikely to continue rising at a rapid rate. The best time to buy a home will have always been ten years ago. Take advantage of the stabilizing market and get started on your next real estate adventure so that you’re not looking back in ten years wishing you would have bought a house when you had the chance.
Buying or Selling a House? HoneyHomb is Here to Help
Here at HoneyHomb, we understand the importance of having an experienced partner by your side as you navigate the 2022 Utah housing market. That’s why we are here to simplify the home buying and selling process for clients across the Wasatch Front, including Sandy, West Valley, Salt Lake City, and the surrounding areas in Utah.
It’s important to have a trusted team of real estate experts to guide you every step of the way. So whether you’re looking for your next home or ready to sell the one you have already got, HoneyHome is here to help. Buy and sell your house the HoneyHomb way. Get started today!