The housing market in Utah has been on the rise for quite some time now. There are many reasons why the housing market has been going crazy in Utah and across the country. In this article, we will discuss several reasons why the housing market is buzzing in Utah and some statistics expressing Utah’s economic state. In Utah, the housing market has been recently stabilizing and we will get into why that is happening in this article as well.
Societal Changes Due To The Pandemic
The largest reason why house prices have been so high in the last couple of years is partly due to the Covid-19 pandemic. After the Covid-19 shutdown, big cities saw a huge migration of people leaving the city to smaller towns and more rural areas. Utah saw a lot of migration from places like California and New York. With these societal changes, there is a large change in the prices of homes in Utah.
Another reason why prices have increased in Utah is due to the economic prosperity of the area. In comparison to the rest of the country, Utah’s economy is relatively solid. In 2022, Utah’s economy ranked number 6 in the United States and is ranked number 1 in the country for economic growth. With the many economic opportunities, Utah becomes a great choice for people to live, therefore increasing the demand for living in Utah.
Why Is The Housing Market Stabilizing?
Although prices have been on the rise in the past few years, housing costs have recently been stabilizing in Utah. Why you might ask? There are a few different reasons that could be to blame. The first is that the supply of housing is finally beginning to catch up to the demand. In the last couple of years, the home building industry has been booming in Utah and the number of homes available compared to the number of people wanting to buy homes is beginning to be more comparable.
The market is also stabilizing because the federal government has recently begun raising home interest rates in an attempt to slow the hectic pace of the rising housing market. In January of 2022, interest rates for a 30-year fixed mortgage averaged around 3% while now in August 2022, the rates have increased to almost 6%. While this has successfully kept the prices from increasing, the prices of homes have stabilized at all-time highs.
This is not a great turn of events for many individuals who are looking for a new home. With the high selling prices and increasing interest rates, the monthly payments for individuals are almost double. However, with the right tools, research, and help, you can still find the home of your dreams.
Do You Want To Buy Or Sell A Home?
If you are looking to buy or sell a home, it is important that you have a great real estate agent. Especially with the volatility of the housing market, it could quickly change from a seller’s market to a buyer’s market, meaning that it could be useful to have the guidance of a real estate professional. We at Premier Utah Real Estate offer excellent real estate services to our clients. We are based in Tooele, Utah, and service many of the surrounding cities. For more information, reach out to us today.