Utah Housing Market: Prices, Trends & Forecast 2023 (2024)

In the Utah housing market, several key trends emerged in September 2023. Notably, there has been a decrease in new listings, pending sales, and closed sales. The median sales price has remained relatively stable, while the average sales price has seen an increase. Properties are staying on the market longer, and the inventory of homes for sale has decreased.

These trends reflect a shifting landscape where buyers may find opportunities with a slightly lower median sales price. Meanwhile, sellers should be prepared for a more competitive market.

After a period of rapid appreciation, the market is now readjusting to more sustainable conditions. This trend is also visible in the Salt Lake County real estate market. Despite a substantial increase in inventory compared to previous years, the long-standing issue of insufficient available homes in Utah persists.

Home sales in the Salt Lake City housing market and nationwide are expected to decline this year. Despite these challenges, Utah's strong employment market remains a notable strength, boasting the nation's lowest jobless rate.

Utah Housing Market Report & Trends 2023

We'll analyze key metrics, including data from September year to date, and provide insights provided by the Utah Association of REALTORS® into what these numbers mean for the Utah real estate market.

Let's dive into the numbers for the year up to September 2023. This data will give us a comprehensive overview of the state of the housing market in Utah.

New Listings: In 2022, there were 5,109 new listings, but in 2023, this number decreased to 4,703, marking a 7.9% drop. Year to date, there were 52,132 new listings in 2022, compared to 41,365 in 2023, indicating a significant 20.7% decrease.
Pending Sales: The number of pending sales also saw a decline, going from 2,957 in 2022 to 2,898 in 2023, a 2.0% decrease. Year to date, there were 34,827 pending sales in 2022, which reduced to 30,414 in 2023, showing a 12.7% drop.
Closed Sales: Closed sales experienced a notable drop, declining by 20.9% from 3,929 in 2022 to 3,108 in 2023. Year to date, there were 36,508 closed sales in 2022, which decreased to 29,831 in 2023, reflecting an 18.3% decrease.
Median Sales Price: The median sales price remained relatively stable, with a minimal 0.2% decrease from $490,000 in 2022 to $489,000 in 2023. However, when we consider the year-to-date data, there was a more substantial drop, with median prices going from $515,000 in 2022 to $485,000 in 2023, representing a 5.8% decrease.
Average Sales Price: The average sales price increased by 5.2%, rising from $622,226 in 2022 to $654,544 in 2023. However, the year-to-date data showed a 3.0% decrease, with average prices dropping from $630,872 in 2022 to $612,109 in 2023.
Percent of Original List Price Received: Sellers received a slightly higher percentage of the original list price, with an increase of 0.5% from 95.9% in 2022 to 96.4% in 2023. Nevertheless, year-to-date data revealed a 3.8% decrease, with the percentage dropping from 100.2% in 2022 to 96.4% in 2023.
Days on Market Until Sale: The average number of days a property stayed on the market increased significantly by 23.8%, going from 42 days in 2022 to 52 days in 2023. Year-to-date data showed an even more substantial 103.7% increase, with days on the market rising from 27 days in 2022 to 55 days in 2023.
Inventory of Homes for Sale: The inventory of homes for sale saw a 15.3% decrease, going from 13,548 in 2022 to 11,478 in 2023.
Months Supply of Inventory: The months supply of inventory increased by 8.8%, rising from 3.4 in 2022 to 3.7 in 2023.

These statistics paint a picture of a Utah housing market that has undergone significant changes in 2023. While the median sales price remained relatively stable, other indicators, such as the number of new listings, pending sales, closed sales, and days on market, have shown substantial fluctuations. The increase in the average sales price suggests that some properties are still in demand, despite the overall market changes.

Buyers may find opportunities in the decreased median sales price, while sellers should be prepared for a more competitive market with properties staying on the market longer. As we move forward, it's essential to keep a close eye on these trends and adapt your real estate strategies accordingly to make the most of the Utah housing market in 2023.

Utah Real Estate Market Report by UtahRealEstate

Here's how the housing market performed, according to UtahRealEstate.com. Utah’s median home price remains well over the half-a-million-dollar mark. Compare that to January 2019, when it was just below $300,000.

In September 2023, around 2828 homes were sold on MLS, down 21.8% from last year.
No. of single-family homes sold was 2096.
No. of multi-family homes sold was 732.
The median days on market were 31, up from 29 days last month.
The median selling price was $550,000 for single-family homes, down 0.9% year-over-year.
The median selling price was $399,000 for multi-family homes, down 1.5% year-over-year.
The data is provided by UtahRealEstate.com, the leading provider of real estate technology in Utah and one of the largest Multiple Listing Services in the United States.

Utah Housing Market: Prices, Trends & Forecast 2023 (2)

Why Are Home Prices So High in Utah?

Utah boasts the nation’s strongest pace of job growth, along with rock-bottom unemployment, ultra-low mortgage rates, few mortgage delinquencies, and low state and local taxes. All those factors pushed Utah into first place in Bankrate’s Housing Heat Index for the fourth quarter of 2020. Utah's home values increased by 15.39% in the 12-month period that ended Dec. 31, third-best among U.S. states, according to the Federal Housing Finance Agency.

Since 1991 Q1, HPI for Utah has increased by 414.95%. Idaho ranked #1 in FHFA State House Price Indexes. The HPI is a broad measure of the movement of single-family house prices. It is measured by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. According to a Bankrate analysis of Labor Department data, Utah also posted the second-strongest job growth in the nation from December 2019 to December 2020.

Even if inventory is significantly higher than it has been in the previous two years, it still does not address what has been a problem in Utah for years. There are still not enough houses. Even though homebuilding soared in Utah in 2021, putting the state on the national map for its housing boom. It made a decent dent in Utah’s housing shortage, but not enough to erase it.

Rapid population growth and job growth are the two most important drivers of housing demand in Utah right now. According to local real estate agents, there aren’t enough single-family homes to meet the rising housing demand. A balanced market has roughly a six-month supply of houses, which means that if we stopped listing new properties, we'd still have about six months before we ran out. And right now, Utah is down to about four weeks of supply of homes.

Utah Real Estate Market Trends for Q2 2023

According to the report by Windermere Real Estate Chief Economist Matthew Gardner, although it slowed in the first quarter of 2023, employment growth has stabilized in Utah. The state added 52,400 jobs over the past 12 months, which represents an annual growth rate of 3.1%. The counties covered by this report added almost 33,000 new jobs over the past year, representing a growth rate of 2.4%.

As we saw in the first quarter of the year, the fastest growing county was Summit, which had a 5.8% annual growth rate. The slowest was again Morgan County, where the job level rose 1.6%. Utah’s unemployment rate in May was 2.5%, up .03% from the level in the second quarter of 2022. At the county level, the lowest jobless rate was in Morgan County (1.8%) and the highest was in Weber County, where 2.5% of the workforce was without a job. In aggregate, the unemployment rate within the counties contained in this report was only 2.3%.

Utah Home Sales

In the second quarter, 6,939 homes were sold in the areas covered by this report. This was down 21% compared to the second quarter of 2022 but was 28.3% higher than in the first quarter of this year.

Year over year, sales fell across the board. However, sales increased by double digits in every county covered by this report compared to the first quarter.

It is quite likely that the higher number of homes sold compared to the previous quarter was a result of the impressive increase in the number of homes for sale. Inventory rose 12.6% over the first quarter.

Pending sales rose 14.6% from the first quarter, suggesting that closings in the upcoming quarter will likely rise.

Utah Home Prices

The average sale price in the quarter fell 5.4% from the second quarter of 2022 to $629,289. However, sale prices were 4.1% higher than in the first quarter of 2023.

Median list prices in the second quarter were 8.5% higher than in the first quarter of the year. It’s interesting to see sellers’ continued confidence given the significant increase in mortgage rates the market has experienced.

Year over year, prices rose in Summit County but dropped in the other markets. Compared to the first quarter, prices rose in every county other than Wasatch, where they fell 12.7%.

It was notable that the markets that saw list prices rising were in the more affordable areas. Expensive counties, such as Morgan, Summit, and Wasatch, all had lower median list prices than in the first quarter of this year.

Utah Days on Market

The average time it took to sell a home in the counties covered by this report rose 36 days compared to the same period a year ago.

Homes sold fastest in Salt Lake County and slowest in Summit County. All areas saw average market time rise compared to the second quarter of 2022, but market time fell in all areas compared to the first quarter of this year.

Utah Housing Market Forecast 2023-2024

Utah's housing market has boomed during the pandemic, and Utah has emerged as a particularly desirable market. Utah home prices are soaring as Californians migrate into the state leading to an imbalance between supply and demand. Utah's economy is currently in excellent shape. Utah's job market is robust enough to avoid widespread foreclosures, and housing demand is expected to remain high in 2023 due to the state's rapid expansion and widespread home shortage.

Some experts expect prices to decline in 2023, depending on what happens with interest rates in 2023. So far, Utah home prices are still up year over year. Higher mortgages have already impacted buyer demand. Sales have been declining by massive double-digits. The price growth is trending lower, and 2023 can't be a year of double-digit increase.

The latest housing market data from Zillow provides valuable insights into the current state and future projections for the Utah real estate market. As of September 30, 2023, the average home value in Utah stands at $507,814, reflecting a 4.0% decrease over the past year. Additionally, homes are going pending in approximately 20 days, emphasizing the brisk pace of the market.

Here are some key statistics and forecasts for the Utah housing market:

Median Sale to List Ratio (August 31, 2023): The median sale-to-list ratio for August 2023 was 1.000, suggesting that homes were typically selling at or very close to their listing prices.
Percent of Sales Over List Price (August 31, 2023): In August 2023, approximately 31.6% of sales went over the list price, indicating strong demand and potential competition among buyers.
Percent of Sales Under List Price (August 31, 2023): About 46.8% of sales were under the list price in August 2023, reflecting that negotiation opportunities were prevalent in the market.
Median Days to Pending (September 30, 2023): The median time it took for homes to go pending was 20 days as of September 30, 2023, emphasizing the fast-paced nature of the Utah housing market.

Utah Metropolitan Statistical Area (MSA) Housing Market Forecast

The Utah MSA forecast provides a glimpse into the expected trends in various regions across the state. While the exact values are subject to change, these forecasts offer a general overview of what to anticipate in the coming months:

Salt Lake City, UT MSA: As of September 30, 2023, the forecast predicts a 2.4% increase in home values by September 30, 2024.
Ogden, UT MSA: For Ogden, a 3.2% increase in home values is projected by September 30, 2024.
Provo, UT MSA: Provo is expected to experience a 2.1% increase in home values by September 30, 2024.
St. George, UT MSA: St. George may see a 2.4% increase in home values by September 30, 2024.
Logan, UT MSA: Logan's forecast suggests a 4.5% increase in home values by September 30, 2024.
Heber, UT MSA: A 5.1% increase in home values is projected for Heber by September 30, 2024.
Cedar City, UT MSA: Cedar City may experience a 3.3% increase in home values by September 30, 2024.
Vernal, UT MSA: Vernal's forecast predicts a substantial 5.5% increase in home values by September 30, 2024.
Price, UT MSA: For Price, a 5% increase in home values is projected by September 30, 2024.

These forecasts provide valuable information for buyers, sellers, and investors in the Utah housing market, offering a glimpse into the expected trends in different regions across the state.

Utah Housing Market: Prices, Trends & Forecast 2023 (3)

References:

https://slrealtors.com/
https://utahrealtors.com/
https://www.zillow.com/home-values/55/ut/
https://www.bankrate.com/mortgages/housing-heat-index/
https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx

As an enthusiast and expert in real estate markets, particularly the Utah housing market, my extensive knowledge is grounded in a deep understanding of market dynamics, statistical trends, and the economic factors influencing property values. My expertise is substantiated by a robust comprehension of various indicators, including new listings, pending sales, closed sales, median and average sales prices, days on market, inventory levels, and the broader economic conditions shaping the real estate landscape.

Now, delving into the content of the article, several key trends have emerged in the Utah housing market in September 2023:

New Listings:
- In 2022, there were 5,109 new listings, but in 2023, this number decreased to 4,703, marking a 7.9% drop.
- Year to date, there were 52,132 new listings in 2022, compared to 41,365 in 2023, indicating a significant 20.7% decrease.
Pending Sales:
- The number of pending sales decreased from 2,957 in 2022 to 2,898 in 2023, a 2.0% decrease.
- Year to date, pending sales reduced from 34,827 in 2022 to 30,414 in 2023, showing a 12.7% drop.
Closed Sales:
- Closed sales experienced a notable drop, declining by 20.9% from 3,929 in 2022 to 3,108 in 2023.
- Year to date, closed sales decreased from 36,508 in 2022 to 29,831 in 2023, reflecting an 18.3% decrease.
Median Sales Price:
- The median sales price remained relatively stable, with a minimal 0.2% decrease from $490,000 in 2022 to $489,000 in 2023.
- However, the year-to-date data showed a more substantial drop, with median prices going from $515,000 in 2022 to $485,000 in 2023, representing a 5.8% decrease.
Average Sales Price:
- The average sales price increased by 5.2%, rising from $622,226 in 2022 to $654,544 in 2023.
- Year-to-date data showed a 3.0% decrease, with average prices dropping from $630,872 in 2022 to $612,109 in 2023.
Days on Market Until Sale:
- The average number of days a property stayed on the market increased significantly by 23.8%, going from 42 days in 2022 to 52 days in 2023.
- Year-to-date data showed an even more substantial 103.7% increase, with days on the market rising from 27 days in 2022 to 55 days in 2023.
Inventory of Homes for Sale:
- The inventory of homes for sale saw a 15.3% decrease, going from 13,548 in 2022 to 11,478 in 2023.
Months Supply of Inventory:
- The months supply of inventory increased by 8.8%, rising from 3.4 in 2022 to 3.7 in 2023.

These statistics depict a dynamic Utah housing market in 2023, with fluctuations in key metrics. The median sales price remained relatively stable, indicating some resilience, while other indicators like new listings, pending sales, closed sales, and days on market showed significant changes. The increase in the average sales price suggests ongoing demand despite market shifts.

Additionally, insights from UtahRealEstate.com provide further context, noting a decline in home sales in September 2023 compared to the previous year. The median selling prices for single-family and multi-family homes, along with days on market, offer a more granular perspective on the market conditions.

The article also touches upon the factors contributing to the high home prices in Utah, including strong job growth, low unemployment, low mortgage rates, and low state and local taxes. The influx of residents from other states, particularly California, is identified as a driving force behind the housing demand, exacerbating the supply shortage.

Furthermore, the report by Windermere Real Estate Chief Economist Matthew Gardner provides a quarterly analysis, highlighting trends in employment growth, home sales, prices, and days on market. The data indicates a stabilization in employment growth and an increase in inventory, potentially impacting future sales.

Looking ahead, the housing market forecast for 2023-2024 suggests that Utah's housing market remains robust, driven by a strong economy and high demand. However, there are considerations about potential price declines in 2023, depending on interest rate movements.

The Zillow data provides a snapshot of the current state of the Utah real estate market as of September 30, 2023, indicating a 4.0% decrease in average home value over the past year. Key metrics such as the median sale-to-list ratio, percent of sales over and under list price, and median days to pending offer further insights into market dynamics.

Finally, the Utah Metropolitan Statistical Area (MSA) housing market forecast offers region-specific projections, predicting varied increases in home values across different MSAs in the state.

In summary, the Utah housing market in 2023 is characterized by nuanced shifts in key indicators, influenced by a complex interplay of economic, demographic, and market-specific factors. As a seasoned expert in real estate, I emphasize the importance of monitoring these trends closely for informed decision-making in Utah's dynamic real estate landscape.