Utah Real Estate Market: A Buyer’s Guide to Current Trends
A growing 3.2 million people call the state of Utah home. That number might not seem like much in comparison to California’s 30 million+ population but in the context of Utah having just 400,000 people in the state in the 1920s, the growth is substantial.
There are several reasons why people love the state of Utah. It has a friendly religious community, open spaces, and is among the most value-driven states in the union. Furthermore, the Utah real estate market is among the best markets to get your feet wet in as a resident or as an investor.
Does the Utah real estate market make sense in today’s nearly post-COVID world though? Have things in 2020 affected 2021 trends?
Below, our team answers those questions and more by sharing things buyers should expect based on market projections. Keep reading to learn more!
Home Prices Will Keep Going Up
Waiting for home prices to tank in Utah real estate market before making an offer? You’re going to be waiting a long time.
We expect that 2021 will continue to bring rising home prices that outpace the rate of inflation. These rises will be due to a bevy of factors, many of which we’ll discuss in separate points below.
The bottom line is that if you’re thinking “should I buy a house” and price is what’s holding you back, know that the deal you’ll get today will probably be better than the deal you’ll find as we move into 2022.
Interest Rates May Not Stay Low
Federal interest rates were dropped to historic lows to help stimulate the economy. That was a sound move by the administration at the time but with us rounding the corner on COVID, it’s not likely interest rates will stay low.
As feds raise interest, spending will decrease in the economy and mortgages will get more expensive.
The good news is that oftentimes when interest rates go up, housing prices adjust downward, to an extent, to help offset the rise in costs. Know that the housing price drop usually isn’t enough to bring prices back down to what they would have been when interest rates were lower.
More Migration Will Be Made to Utah
Many people are fed up with overpopulated states that feature ballooning prices. They want to be able to buy a house, have some land, and not feel like they’re shoulder to shoulder with thousands of neighbors.
Those people are migrating out of big states like California and parking in nearby states like Utah. That influx, predictably, will hike up home prices.
People Will Be Fleeing Urban Utah
There used to be a level of appeal to living in downtown Salt Lake or another big city center. That appeal was access to work and services.
Post-COVID, work has gone remote and while many people will be returning to the office soon, most will retain a hybrid situation. With that, we think more people will feel good about living outside of downtown areas and will reside in the suburbs, knowing that they won’t have to commute too often and that services can be had via the internet/delivery.
That’ll make city prices drop and suburb prices go up.
Commutes Will Be Less of a Deciding Factor
Touching on our last point again, when you buy a house in Utah or anywhere else, one of the top questions you’ll ask is, “How long will my commute be?”. With remote/hybrid work situations in play, you won’t have to ask that question nearly as seriously.
That’ll allow you to enjoy the current real estate market from other angles that are not related to time spent driving. We think this will enable you and others to pick where they live for more important reasons which will create more fulfillment.
Inventory May Increase
There’s a common housing market prediction that in 2021 many people pulled their homes off the market in 2020 because they didn’t want to get infected by buyers. If that’s true, it may be that in the back half of 2021, when most people are vaccinated, those held houses will flood back into the market, creating a massive influx of inventory.
More inventory for a buyer is great news because it means more options and lower housing prices.
Competition May Increase as Well
Before you get too excited about increased inventory lowering the Utah real estate market, consider this… With more economic stability comes more buyers that are looking to scoop up houses.
Increased buying competition may very well offset inventory increases to keep prices stable, or more likely, to make them grow as many people predict.
Cities Like Hyde Park and Park City Will Stay Desirable
Even with all of the market shifts going on in 2021, we still think that Utah’s bread and butter cities will remain desirable. Places like Hyde Park, Park City, and even Providence will remain spots most buyers will have their eyes set on.
Also, as you’ll see on sites like Fieldstone Homes, Salt Lake will continue to be among those on mover’s shortlists if for no other reason than the economic opportunity that exists there.
The Utah Real Estate Market Offers Ample Opportunity Today and in the Future
Whether you’re interested in the Utah real estate market because you’re looking to move, want to invest, or for any other reason, there’s opportunity for you. Yes, prices are going up. Still, Utah offers some of the best value of any state when it comes to real estate so you can rest easy knowing that you’re playing in one of the best markets.
Curious to learn more about buying a house in Utah? Asking yourself, “Is it a buyer’s market?”
To take in information on those questions and more, explore additional content on our blog!