It’s been a wild ride getting through the year 2021 (which has felt more like 2020 part two so far). There has been plenty to be concerned about recently: a persistent pandemic, rising gas prices, and inflation. Attempting to purchase a home is especially difficult in this situation. There have been few places in the country that have been as competitive in their real estate as Utah in 2021. It appears that this trend will continue in 2022 as well.
According to forecasts, the Salt Lake City region is expected to be the nation’s No. 1 housing market in 2022. They also anticipate an increase in prices of 8.5 percent and an increase in sales of 15.2 percent. Compared to other booming markets like Boise, ID, Spokane, WA, Indianapolis, IN, Salt Lake City, and much of the state would be a step above the competition.
Despite the fact that Utah has experienced consecutive years of record-breaking housing numbers, the state’s housing market is expected to remain “severely imbalanced” through at least 2022.
Rates are expected to rise
Historically low interest rates have spoiled Americans over the last several years, and rates will continue to rise throughout 2022. 30-Year interest rates fixed-rate mortgages have already begun to trend closer to 3 percent, after reaching record lows in the mid-2% range earlier this year. While the days of interest rates in the mid-to-low 2 percent range are over, rates will continue to be favorable.
According to the forecast, rates are expected to rise and then flatten out around 4 percent on the high end and 3.4 percent on the low end during 2022. However, while these rates are historically low, they will be nowhere near the all-time lows that will be reached in 2020. Because of the higher interest rates, you can expect buyers to be more aggressive in pursuing the best deal they can get in a market that is already overheated and stressed.
The market will become more competitive
Due to the fact that homes are now worth more than they have ever been, Utah can expect a greater number of sellers to enter the market in 2022. While you might think that means you have a better chance of getting the house you want, that is not the case. The demand for Utah real estate is outpacing supply, and the market will continue to favor sellers for the foreseeable future, according to the state of the State report released this week.
Whether the pandemic caused plans to be postponed or provided new opportunities to buy a home, Americans are poised for a flurry of activity in the housing market in 2022.
Consumers need to be inventive
In 2022, a large number of Utahns will be looking for a home, and buyers should be prepared to put in a significant amount of time and effort into patience and decision-making. Sellers will need to make sure their homes are in tip-top shape to attract the best offers, and some buyers will be willing to waive the home inspection and appraisal contingencies to secure a residence.
As per the State’s Housing Market report published by the Kem C, “By the end of 2020, the median price in Utah would have reached $380,000, effectively pricing out approximately 48.5 percent of the state’s population. With reference to increase in prices in 2021, more than half of Utah households will be unable to afford the median-priced residence.”
Prices are expected to rise
Utah real estate prices are anticipated to witness significant growth in 2022, although you’re probably tired of hearing it. Due to increased buyer competition and a desire to get ahead of interest rate rises, Utah’s average home prices are expected to continue to rise in the coming months.
Realtor.com predicts that Salt Lake City’s existing median sales prices will rise by 8.5 percent in 2022, on top of the dramatic price increases that have already occurred over the past several years. This increase in prices will result in a more intense but slightly slower market for those looking to buy a home in the near future.
In a year in which housing costs are expected to rise while incomes rise, the year 2022 will present a mixed bag of challenges and opportunities for those who want to live in an affordable housing market.
Conclusion
According to a widely held belief among Utah residents, the current market is just another bubble. You might be waiting a long time if you’re waiting for the housing market “bubble” to burst, according to the state of the State’s Housing Market report.
It is all about strategy in Utah real estate for any homeowners who plan to sell their homes in 2022. One of the highly effective strategies is to hire an agent who is knowledgeable about the market, knows how to negotiate, and knows how to alleviate any headaches that may arise. Listings tend to sell for market value, and in many cases for more than market value, when they are promoted effectively.”
Featured Image by RobinSaville from Pixabay
