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Living until 2021 (which is more like 2020 part two) has been a wild ride. A lingering pandemic, rising gas prices, inflation – there was cause for concern. This is especially true if you are trying to buy a home. Few places in the country have been as competitive in their real estate as Utah in 2021, and it looks like that trend will continue in 2022.
Realtor.com recently named the Salt Lake City area as the nation’s No. 1 expected housing market for 2022. They also predict prices will rise 8.5% and sales 15.2%. That would put Salt Lake City, and much of the rest of the state, ahead of other booming markets like Boise, ID, Spokane, WA and Indianapolis, IN.
Even though Utah has seen successive years of record housing numbers, Utah’s market appears to remain “severely out of balance” through 2022 and beyond, according to Utah’s State of the Housing Market Report. State of the Kem C. Gardner Policy Institute at the University of Utah. .
To better understand the real estate market expected in 2022, here are some things to consider.
Rates will go up
Spoiled by very low interest rates over the past few years, Americans will see rates rise throughout 2022. After hitting record lows of around 2%, interest rates on fixed-rate mortgages over 30 years have already started to tend towards 3%. While the days of the mid to low 2% range are over, rates will still be good.
Nerd Wallet expects rates to rise and then flatten around 4% on the high end in 2022 and 3.4% on the low end. While these rates are all-time low, they will be far from the all-time lows of 2020. Due to these higher interest rates, you can expect buyers to be fierce in their determination to close the best deal. offer possible in a more -stressed market.
More sellers will enter the market
Now that homes are worth more than ever, Utah can expect more sellers to enter the market in 2022. While you might think that would mean a better chance of securing the home you want, think again. you. Utah’s growth is far outpacing supply, and the market will continue to be in the seller’s favor for now, the state of the state report predicts.
“Whether the pandemic has delayed plans or created new opportunities to move, Americans are set for a whirlwind year of home buying in 2022,” Realtor.com says.
Prices will go up
You’re probably sick of hearing this, but Utah home prices are expected to continue rising in 2022. Fueled by competition from buyers and the urgency to outrun rising interest rates, median prices of Utah homes will continue to increase.
Realtor.com predicts Salt Lake City’s existing median selling prices will increase 8.5% in 2022, on top of what has already been several years of dramatic price increases. This price increase will foster an intense, but somewhat slowed, market for those hoping to buy a home.
“With listing prices, rents and mortgage rates all set to climb as incomes rise, 2022 will present a mix of housing affordability challenges and opportunities,” Realtor.com reports.
Buyers need to be creative
Many Utahns will be looking for homes in 2022, and buyers should be prepared for a vigorous exercise in patience and decision-making. Sellers will need to have their homes in pristine condition to attract the best deals and some buyers will be willing to forgo home inspections and appraisal contingencies to secure a home.
The State of the Housing Market Report from the Kem C. Gardner Policy Institute at the University of Utah states: “At the end of 2020, the median price reached $380,000, representing 48.5% of Utah households. As prices accelerated in 2021, more than half of Utah households cannot afford a home at the median price.”
For this reason, resources like the experts at Homie to guide you through a competitive offer will be essential to locking down your next home.
This is not another bubble
A common myth among Utah residents is that the current market is just another bubble. According to the State of the State’s Housing Market Report, if you’re waiting for a “bubble” to burst, you might be waiting a while.
“After a record year of accelerating prices and construction activity, 2022 will be driven by mortgage rates, while demographic tailwinds should keep housing demand robust for the rest of the decade,” writes the Kem C Gardner Policy Institute. “The most likely outcome for Utah house prices over the next two to three years is the onset of a period of price moderation. A period of prolonged price decline created by the outbreak of a bubble is extremely unlikely.”
For any homeowners thinking of selling in 2022, Mario Gutierrez of Homie says, “Real estate is all about strategy. One of the best strategies is to choose an agent who knows the market, knows how to negotiate and how to mitigate the pains. head that With Homie’s proven marketing, our listings tend to sell at market value and many cases above.
“What better way to have all of that with a brokerage that only charges you a flat fee and not the crazy amounts most agents do,” Gutierrez says. “We love all agents, but we love our customers even more! »
Since a bubble is not in the cards, the best thing to do is to have a good team on your side to navigate the buying or selling process. Contact the folks at Homie today to explore your buying and selling options for 2022.