I have clients asking me all the time, "Are prices coming down yet?" or saying "I'll wait until prices drop" or "this is the start of the crash of the housing market." While I don't have a crystal ball, there would have to be some major factors to have the Utah Real Estate market "Crash!" Right now those aren't the indicators. Has the number of days on market increased? YES! Have housing prices stopped going up exponentially? YES! It looks as though the market here in Utah has taken a breath and started to calm down. We are seeing properties on the market for longer than 24 hours and they are not getting 20 bids for $30K over asking. This is making the market more stable and more predictable. It is less volatile which is good for everyone. There have been some price reductions in homes that were listed above market value that are now in line with the current market value.
What we are seeing is a stabilizing effect of the market due to inflation, higher interest rates and some homebuyers having decided to wait and see, hoping that prices decline. However, with inflation, assets do not normally decrease in value and unfortunately, for those that are waiting for a substantial downturn, the market is not indicating a substantial decline.
We still have a rather substantial housing shortage which we have not been able to build our way out of, the last 5 years with new construction. We have more people moving in to the state and we have a shortage of homes for sale on the market for an average year. I am not an economist but I do have years of experience in real estate, and what I see in the future is a more stable and predictable market. Perhaps it is best explained by the economists at: Kem C. Gardner Policy Institute, The University of Utah, David Eccles School of Business. They have spent decades researching and studying the Utah Real Estate, Construction and Housing markets. I highly encourage you to read their blog article form June 1, 2022 linked below:
https://gardner.utah.edu/blog-where-does-utahs-housing-market-go-from-here/
Buyers:
It should be easier to get your offer on a home accepted this summer than it was in the last year. I have great contacts to get you pre-qualified to purchase a home. Give me a call or call Brandon Waters at Patriot Home Loans 801-243-7720 to get started. He can help you in a 15 minute phone call.
Sellers:
It is a great time to sell your home as prices are still great and the market needs homes to sell, so it is still a seller's market. It may take a more normal time frame than over the last 12-18 months but it will sell if it is priced right. Feel free to contact me or Shauna for a free current market analysis of your home.
Either way, we love helping!
Kelly Zindel, Realtor
Shauna Jensen, Broker