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Today we are sharing key information to the most up-to-date Utah housing data including the market’s current trends for August 2023. The goal is to give you a peek into the future to help keep you ahead of the curve, giving you a massive advantage whether you're looking to buy, sell, build a home, or invest in Utah real estate. Before we begin, can we please take a moment to express our gratitude for following us along? Thank you! Each year, US News ranks the best states in the US, and Utah has taken the number one spot. The Best States Project uses thousands of data points to determine how each state serves its residents, focusing on eight different categories.

The data in this report is fascinating, and it lets us see how we compare to the other states. Despite this incredible honor and all the great things happening in Utah, it kind of feels like a zombie apocalypse as home buyers everywhere are gobbled up by these higher mortgage interest rates. Over the past several weeks, rates have been locked in at just over 7%, sidelining a lot of buyers. Sellers are feeling the pain too, especially as home builders slash prices and offer huge incentives. A lot of people expect home values to tumble, while many others predict consistent price increases. Right now, we’re going to dive into the data to show you how these high mortgage rates over the last month have affected home values here in Utah.

Last Month

The main question here is whether it is a good time to buy or sell a house, and by the end of this, you will have the knowledge and confidence to make educated decisions; one of my recommendations may surprise you. With so much uncertainty, I've seen some incredible opportunities, especially over the last few weeks, and I'm especially excited to share my thoughts on homebuilders. Recent data shows mortgage rates have been sitting around 7% for so long, even we have been feeling anxious to see these numbers. We will be comparing the most recent numbers from the June 2023 housing data by UtahRealEstate.com to last month, last year, the peak of the market, and we'll take a look at what has happened so far in 2023. Looking at June 2023, 3,358 total homes were sold, with 2,507 of those being single-family homes. It took 21 days for a home to sell at a median price per square foot of $228.28.

The median sold price for a single-family home was $550,000. Multifamily housing is sitting at $400,000. So how does this compare to last month? Looking at May, 3,389 total units were sold, while 3,358 homes were sold in June. So, 41 fewer homes were sold this month compared to last month. This likely indicates a stabilizing market as you move into the slower part of the real estate sales cycle. It also took two fewer days to sell a home, dropping to 21 days on the market. The median price per square foot increased a few bucks from $225.96 to $228.28. Looking at May, the median sold price for a single-family home was $541,000; in just one month it jumped to $550,000.

A surprising increase of $9,000. The price for multifamily housing remained unchanged, indicating that even though mortgage rates have been sitting around 7% for the last several weeks, home values have continued to increase. The number of homes sold stayed very close to the same while also selling in just three weeks, so why are so many people buying houses while mortgage rates are still so high? It's probably because home prices have been increasing since January, and some think home prices will just keep going up. Okay, now let's look at the year-over-year numbers.

Last Year

If you remember, June 2022 is just one month after the housing market peaked. Looking at June 2022, 4,060 homes were sold and in June of 2023, 3,358 homes were sold. Therefore, this last month saw 702 fewer homes sold compared to one year ago.

In June of 2022, a home sold in just nine days, so it's only taking 12 days longer to sell a home today. The median price per square foot was $239.19, which means we're only down by about $11 per square foot from one year ago. In June 2022, looking at the red box to the left, the median sold price for a single-family house was $594,000, compared to $550,000 today if you're looking at the red box to the right. The median sold price is still $44,000 below where it was last year. Now we will take a look at how things look from the peak of the market in May of 2022.

4,059 homes were sold in May of 2022, and in June 2023, 3,358 homes were sold; that's 701 fewer homes sold today compared to when the market was smoking hot. In May of 2022, a home sold in just six days, so it's taking 15 days longer to sell a home today. The median price per square foot at the peak of the market was $244.26, which means we're down $16 per square foot from the peak. In May 2022, looking at the red box to the left, the median sold price for a single-family home was $598,500, compared to $550,000 today, making the median sold price $48,500 lower than it was at the peak of the market. Finally, let's see what the housing market has done so far this year.

This Year

In January 2023, 1,949 homes were sold in total, with 1,413 of those being single-family homes. In June 2023, 3,358 homes were sold, with 2,507 of those being single-family homes; showing 1,409 more homes were sold this last month compared to the first month of the year. That's not so crazy, as January is traditionally slower. Looking at January still, it took 52 days for a house to sell compared to 21 days this last month. Homes are currently selling much faster. The median price per square foot was $216.36, as a result, the price per square foot has increased by about $12. The median sold price for a single-family home was $510.

The price is now $550,000. Since the first of the year, home values have now increased by $40,000, that's a significant jump. For those of you who are trying to tighten the market, you have clearly missed the bottom. As I mentioned, Utah home values fell by more than $100,000 in 2022, but the bleeding stopped in January, and prices have been increasing ever since. Many argue that home prices are only increasing because we're in what's traditionally the hottest buying and selling season. This is a valid argument and something to consider as we move into the dog days of summer and approach the time of the year when people customarily stop looking to buy or sell real estate. There is a real possibility that home prices will flatten or even decrease a little. With the uncertainty of the Utah housing market, even the experts are afraid to predict what's going to happen next.

No Significant Reductions in Home Values

As a real estate agent, I'm in the trenches with buyers and sellers daily. I can say, without a doubt, if mortgage rates stay above 7%, a majority of buyers and sellers in Utah will simply stay where they are. That means we could see price declines, but Utah's housing market is not going to crash. The housing bubble already popped in 2022 when prices plummeted. We won't see significant reductions in home values for several reasons.

#1 Our economy is strong. According to the US News analysis, Utah ranked number one for our economy and fiscal stability. The state also ranks first and second, respectively, in the employment and growth subcategories.

#2 Utah is suffering from a housing shortage. When mortgage rates drop, buyers will flood the market. Lawrence Yun, the Chief Economist for the National Association of Realtors, when referring to the 2023 Utah housing market, said, "Price forecasts for this year are uncertain, but 10 years from now, the winners will be people who bought property."

#3 Not only does Utah have one of the highest birth rates in the country, but we can see that Utah's net migration is significantly higher than the national average. According to the US Census Bureau, Utah is the fastest-growing state. Now, it's easy to hate these higher mortgage rates or even feel angry, but the truth is, these higher rates are your friend. Take a moment to consider what would happen if rates dropped to 6% or lower. With Utah's limited inventory, homes would sell in just days, often with multiple offers, and home values would climb fast. At some point in the next year or so, it's predicted that rates will drop to these levels and maybe lower. That's why you hear people say, "marry the house and date the rate." We've now seen home values increase by $40,000 in Utah this year.

As I mentioned, it's highly likely that we've already missed the bottom of the market. The smart choice is to buy a house today and refinance it to a lower rate when it drops. Dave Ramsey, one of the most trusted and conservative real estate advisors, has been preaching this for several months now. In these market conditions, I've been able to successfully negotiate seller-paid closing costs plus a rate buydown. So even though rates are in the sevens, you get a rate in the low sixes or upper fives. If you're thinking about buying a home, let's chat. This doesn’t mean you need to buy a house right now, but you would be wise to make a plan so that you're ready to jump immediately when the timing is right.

Selling Your House

This might come as a surprise, but some of you might want to wait, however in other scenarios, I do recommend selling your home. Let's talk about the different situations where you might want to wait to sell your house.

#1 If you're planning to move to a less expensive home or location.

#2 If you are able to purchase your next house without selling your current home.

#3 If you have investment properties.

By waiting, you'll almost likely sell your home faster and increase your profits. Personally, I would not wait, I would lease my property on seller financing. As a seller, you become the bank, drastically increasing your profits from the sale of your home, and creating passive income. The advantage of selling your house right now is you’ll have very little competition since there aren’t a lot of homes on the market.

If you're looking to buy a house and need to sell your home, there's no reason to wait. Seller finance might be your best option in this situation, and it's something that I specialize in. If you have questions or you'd like to run numbers, don't hesitate to reach out to us. Now, for those of you looking to buy a home, something crazy is happening. Home builders are slashing their prices and offering crazy incentives. I found a new construction home priced significantly below market value, and the builders offer an awesome incentive. My clients were shocked, and they couldn't send the contract fast enough. Many home builders seem desperate, and I'm not sure what's going on with them, but they're just killing existing home sellers. The incredible pricing and incentives are enough to make builders stand out, but there are several other reasons you might want to consider building a house right now.

As I said, you can lock in a lower price and get a great incentive today, but the builder could take eight to twelve months, maybe longer, to build your home because rates are expected to come down. Your mortgage payment on a new home several months from now could be hundreds of dollars less than if you were to purchase an existing home today. No joke. Not to mention, if you have a home to sell, many builders will allow you to wait until construction has begun before you list your current home. If home values continue to increase, you'll likely be able to sell your house for more than if you had to sell today. If you're looking to buy, sell, build a home, or invest in Utah real estate, please feel free to call or text me with your questions.

We would love to meet you, and we are honored to serve you. If you have a friend or a family member looking to buy or sell a home here in Utah, you can share this post with them; we would love to help.

If your looking for a licensed Utah real estate agent give us a call at 435-414-8597

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