With housing markets throughout the US thrown into an odd limbo as a result of rising rates of interest, dampening demand, however sticky unaffordability, it’s vital to attempt to determine what precisely is occurring on-the-ground. Whereas in previous articles we centered on metropolis housing markets, such because the Denver housing market in 2023, right here we’re specializing in the Utah housing market, each on the state degree and the housing markets of its 20 largest cities.
Learn on to learn how the Utah housing market is shaping up in 2023.
The Utah Housing Market in 2023
Utilizing information sourced from Redfin
In line with the newest information, as of March 2023, the median sale value for a house in Utah total is $525,900. That’s down by 5.8% from the earlier yr, when the median sale value was $558,200 in March 2022. Contemplating how sizzling housing markets had been by way of the primary half of 2022, the year-over-year decline from 2022 to 2023 isn’t too unhealthy in comparison with many different states. Nevertheless, for the three earlier year-over-year intervals — March 2019 to 2020, March 2020 to 2021, and March 2021 to 2022 — the change in Utah’s median sale value displayed double-digit development: 10.7%, 27.7%, and 23.7%, respectively.
Then again, within the pre-pandemic years, development in Utah residence costs was extra modest. From March 2017 to March 2018, the median sale value grew by 8.7%, from $280,300 to $304,600; and from March 2018 to March 2019, Utah’s median sale value grew by 4.8%, from $304,600 to $319,200. Thus, the pandemic-induced excessive demand in homebuying throughout 2021 and the primary half of 2022 actually pressed the fuel pedal on residence value will increase.
The moderation in Utah’s housing market exercise could be seen in a few of the different housing metrics we compiled and analyzed. For example, obtainable for-sale stock has modified dramatically yr to yr from 2017 to 2023. From March 2020 to March 2021, regardless of (or, due to) the affect of the pandemic, Utah’s statewide obtainable stock fell by greater than half (-51.7%): From 6,749 obtainable properties, down to three,258 properties on the market. Within the subsequent year-over-year interval, March 2021 to March 2022, stock once more declined, however solely barely, by 5.5%.
Nevertheless, from March 2022 to March 2023, housing stock in Utah shot again up, by 86.8%: From 3,079 obtainable properties on the market, as much as 5,752 properties. Regardless of this dramatic year-over-year development in housing stock, the variety of obtainable properties on the market in March 2023 is definitely down considerably from a notable excessive of 8,215 properties on the market in September 2022 — the latter determine being the most important inventory of housing stock since September 2015, when Utah had 8,289 obtainable properties on the market.
Under you’ll discover a desk that particulars the important thing housing metrics we used for the statewide Utah housing market total:
Utah Housing Market 2023: Prime 20 Largest Cities
Primarily based on inhabitants, we compiled housing information on the 20 largest cities within the state of Utah. The most important metropolis is the state capital, Salt Lake Metropolis. To a considerable diploma, the housing markets of those 20 cities carefully observe the traits for the statewide Utah housing market total. Though, there are after all exceptions.
Of Utah’s 20 largest cities, Draper posted the best median sale value in March 2023, at $679,200. That determine is down a substantial quantity since final yr: From a median sale value of $820,000 in March 2022, Draper residence costs plunged by 17.2% in only one yr to $679,200. Certainly, Draper skilled the most important drop in median sale value year-over-year behind solely the town of Lehi, which skilled a lower of 19%, from $566,500 in March 2022, right down to $458,995 in March 2023. In truth, 18 out of Utah’s 20 largest cities skilled year-over-year declines of their median sale costs from March 2022 to 2023.
The 2 exceptions had been Herriman and Saratoga Springs, the place residence costs rose by 2% and 4.6% respectively. In any other case, the one-year interval from March 2022 to March 2023 noticed across-the-board drops in residence costs in Utah’s fundamental housing markets.
Try the desk beneath for particulars on these 20 cities and their median sale costs:
The cities of Lehi, Draper, and Sandy all ranked among the many high 5 cities which have skilled the best one-year decline in median sale value. These three cities, not coincidentally, additionally ranked among the many high 5 cities the place the sale-to-list value ratio — the imply ratio of every residence’s sale value divided by their record value masking all properties — has additionally declined dramatically. When properties promote for above their record value, they’ve a sale-to-list ratio of over 100%, and the upper the sale-to-list ratio, then it’s implied that demand is robust, and costs are being pushed up. Nevertheless, having a sale-to-list ratio of lower than 100% implies that the ultimate sale value was decrease than the unique listed value and will replicate a slowing in homebuying exercise and decrease demand.
For instance, in Lehi, the sale-to-list value ratio in March 2022 was 103.2%, so properties had been promoting for greater than they had been initially listed. By March 2023, Lehi’s sale-to-list ratio had decreased by 6.6%, right down to 96.4%, which means that the typical residence in Lehi is promoting for lower than its unique itemizing value. Under is a desk detailing the most important 20 cities in Utah and their sale-to-list ratio metrics:
Utah’s Homes Are Spending Extra Time on the Market
One other helpful metric for gauging the extent of exercise in a sure housing market is the median variety of days a house on the market spends available on the market earlier than being purchased up. A small variety of days on market would replicate excessive ranges of exercise, excessive demand, and homebuying. A lot of days on market, however, would recommend a slowdown in homebuying as properties on the market at the moment are sitting available on the market longer as a result of there’s much less demand.
Statewide, Utah’s median days on market is 46 days, as of March 2023. That’s a few month and a half. A yr in the past, nevertheless, the Utah housing market had a median days on market of simply 9 days. Which means there was a 411.1% year-over-year improve for this metric, or it elevated greater than five-fold in a single yr. And that’s on the state degree; lots of Utah’s largest cities displayed even increased year-over-year elevated:
With all 20 of Utah’s greatest cities witnessing their properties on the market sitting available on the market for considerably longer than final yr, it shouldn’t come as a shock that obtainable stock can be up year-over-year in these cities. As already talked about, statewide, Utah’s obtainable stock elevated by 86.8% from March 2022 to March 2023. Under the Utah housing markets with the best year-over-year improve in housing stock:
- St. George: 378.3%
- Logan: 82.1%
- Eagle Mountain: 58.5%
- Provo: 52.6%
- Layton: 37.7%
A associated metric to stock is month of provide: The variety of months it will take provide to be purchased up if no new properties got here available on the market. Contemplating obtainable stock in Logan is up by greater than 80% year-over-year, it is smart that its months of provide has elevated by 187.5%: From simply 0.8 months in March 2022 to 2.3 months in March 2023. However St. George, which witnessed an virtually four-fold improve in its housing stock, skilled a year-over-year improve in months of provide of 280%: From 2 months in March 2022 to 7.6 months in March 2023. The state of Utah total skilled a comparable improve, with its months of provide rising by 150%, from 0.8 months to 2 months.
The Backside Line on the Utah Housing Marketplace for 2023
Taking collectively all the varied housing metrics deployed in our evaluation, each on the state degree and metropolis degree, it looks as if the Utah housing market is clearly slowing down when it comes to exercise and, with the financial horizon trying stormy, there’s a superb likelihood that the slowdown will persist.
Up to now, the Utah housing market has been going by way of a interval of correction after the heady days of 2021 to 2022, when homebuying reached a frenzied degree. Rising mortgage charges and rising prices of residing (non-housing) have impacted housing market exercise throughout the US these days, and in Utah particularly. From March 2013 by way of August 2020, the median sale value for a house in Utah by no means exceeded $400,000. Then, in September 2020, it crossed the road, reaching a median sale value of $421,700. Through the homebuying fever of the 2021-2022, Utah’s median sale value soared to a peak of $575,900 in Could 2022. It’s now right down to $525,900, which, nevertheless, is far increased than the pre-pandemic common. Subsequently, an outright collapse within the Utah housing market appears unlikely in 2023. However a continued slowing of exercise and weak-to-moderate demand, if not worse, appears possible.