Are you dreaming of moving to Utah? Do the pristine mountains and wide-open desert landscapes speak to your soul?
If so, you’re not alone. People from across the nation are flocking to Utah in record-breaking droves. In fact, Utah has been the fastest-growing state in the US for the past decade!
The question is: What’s going on with the housing market in Utah right now? Is 2021 is a good time to buy your slice of Utah paradise?
In this post, we’ll discuss everything you need to know about housing market trends in Utah. Keep reading for your go-to guide to the Utah housing market!
What’s Happening in the Utah Housing Market?
To put it mildly, the housing market in Utah is on fire right now. High demand, reduced inventory, and record-low interest rates have created a “perfect storm” within the market.
Utah is home to around 3 million residents. Yet, as of March 2021, only 2,000 homes were listed for sale in the entire state. What’s more, each home is receiving dozens of offers, most well above listing price.
Experts for housing market predictions in Utah say they expect to see home prices shoot up between 8%-10% by the end of 2021.
What’s behind this skyrocketing demand? The pandemic is definitely a major factor, as families are seeking to leave densely populated cities for more rural surroundings.
The biggest number of out-of-state buyers are moving in from California. As one example, net exits from San Francisco are up 650% since the start of the pandemic.
Meanwhile, other out-of-state buyers are relocating from New Mexico, Arizona, and Nevada.
Current Housing Market Trends in Utah
We’ve talked about trends, but now let’s talk about numbers. What does the data say about the Utah housing market bubble?
Here’s a brief overview of 2021 housing market stats from Utah MLS.
Average Sale Prices
Median home prices shot up an impressive 16.9% from January 2020. A year ago, the median home price was around $325,000. Now it sits at $380,000.
Average Days on Market
If you think all this talk of a hot housing market is just hype, here’s a stat to make you change your mind.
In January 2020, the average Utah home sat on the market for 39 days. Since the start of 2021, the average DOM has dropped 76% to a mere nine days.
Monthly Home Sales Trends
Like many other states, Utah normally sees a dip in home sales during the winter months. November and December 2020 saw a sharp decline in home sales, but the spring season is sure to see a big increase.
As mentioned at the outset, inventory has reached record lows across the state. In January 2020, there were over 6,800 active listings in Utah. Now the number is hovering around 2,000.
FAQs About Buying in the Utah Housing Market
There’s no denying that the Utah housing market is hot right now. What do you need to know to make your dream of buying a home a reality?
Let’s briefly discuss some tips to help you succeed.
Are Bidding Wars Really That Common in Utah?
Yes, this is the reality at the moment.
With record-low levels of housing inventory (and soaring demand), bidding wars are becoming the norm throughout the state. One Salt Lake City home recently received a staggering 96 bids.
Hopefully you won’t face that much competition when you find a home you like, but it doesn’t hurt to be prepared. Realtors are reporting that it’s normal to receive dozens of bids for the same property.
How Can You Win a Bidding War?
Preparation is key to winning a bidding war and securing the house of your dreams.
Be ready to act fast by getting preapproved for a mortgage loan. Don’t hesitate to present your best offer to the seller, preferably on the same day.
You’ll also have a better chance of success with an experienced real estate agent on your side. For example, the professionals at https://www.fieldstonehomes.com/new-homes/ specialize in new home sales throughout the Salt Lake City region.
Where Is Demand the Highest?
As you might expect, demand for homes is usually highest in densely populated urban areas. Expect plenty of competition if you’re looking for a home in or around Salt Lake City.
Moving north or south along Interstate 15, you may have better luck in some of the smaller cities like Logan, Provo, or St. George. Moab is another hotspot, but you may be able to find more housing options in nearby towns like La Sal or Monticello.
What Are the 2021 Housing Market Predictions in Utah?
As we move through the booming spring selling season, inventory is likely to increase. Overall, it’s still on a downward trend, as is the number of average days on the market.
As demand grows, prices will continue to soar. In fact, some experts think that Utah housing prices could soon match San Francisco housing prices
There’s a glimmer of hope, however. After record low rates, interest rates are once again slowly on the rise. This may help to cool the competition for new homes later in the year.
The Housing Market in Utah Is on Fire
As we’ve discussed, Utah has been the state to move to for the past decade. The mass exodus from California continues to fuel demand for more housing in Utah’s cities, as well as smaller towns.
Does that mean you can’t get in on the action? Not at all! Bookmark this article and refer back to it as you continue to monitor the housing market forecast in Utah.
With enough persistence (and a little luck), you’ll soon be on your way to homeownership in the beautiful state of Utah.
Now that you’re up to date on the housing market in Utah, what’s next? Our site is full of inspiration for current and future homeowners, so stick around and keep browsing!