Utah Housing Market
The Utah real estate market is projected to remain hot into 2022, with the continuation of low-interest rates, high demand as new buyers age into the market, and low supply. While lumber shortages are beginning to correct and contribute to lower lumber prices, and more people are listing their homes than in the previous year, demand continues to outpace supply, resulting in a highly competitive market full of bidding wars and multiple offer situations. Utah is experiencing a major inventory problem. You’ve likely heard stories of buyers waiving appraisals and inspections, just desperate to get into a home in Utah. Why is the market in Utah so hot?
Even with rising housing prices, Utah remains far more affordable than nearly every major city. While some buyers are born and raised in Utah, many are migrating from California and Washington, where prices were so much higher by comparison than any in Utah. Affordability is relative, as some natives have been priced out of the market as they wait for wages to rise to meet housing costs.
Utah boasts many tech jobs, drawing people in the tech industry away from more expensive and less family-friendly locations like Silicon Valley and Portland, Oregon. According to an article by the Wall Street Journal earlier this year (link to WSJ), Salt Lake City has the strongest job market in the nation, with half the unemployment rate of the nation as a whole and opportunities in many fields beyond just tech, including medical, hospitality, marketing, banking, and education.
On average, a house in Utah is on the market under a week, with many buyers willing to waive the appraisal or even an inspection. Buyers are paying well above asking, banking on the predictions that most of the major Utah markets will see over 20% price increase by May of 2022. While you may have sticker shock at the homes on the market today, those homes will likely be listed for $50,000, $100,000, or even more above their current price if you’re shopping for them this time next year.
While the competition is steep and the prices are higher than they’ve ever been, there’s plenty of evidence and expert advice supporting the decision to get into the Utah real estate market. It’s going to cost you more now than it would have two years ago, but you can reasonably expect to have at least 20% more value a year from now on a property purchased today. Even if you aren’t sure if you’re ready or able to take the plunge, reach out to discuss your options with an experienced professional, and remember: time is of the essence in one of the hottest markets in the nation.
Now is a great time to consider a home in Utah. Many folks are moving to the area. For more information on purchasing a home in St. George right now, including all St George area real estate, please contact me anytime.
More Tips for Home Buyers in St. George Utah
- Tips for Buying a Home Out of State
- How to Deal with Counteroffers
- The Most Important Contingency in Your Contract
- What to Expect if You Don’t Have a 20% Down Payment
- Is Offering Asking Price for a Home Enough?
- What is Real Estate Due Diligence and Why Should a Home Buyer Know?
- Flip, Or Flop? Buying The “Worst” Home on The Block
- How to Get Your Offer without a Cash Offer