Utah Central Association of Realtor’s had their Economic Housing Summit last week and provided insight on their real estate market predictions for the future. The Chief Economist of the Ivory Gardner Institute (which is deemed one of the most credible economist organizations in the state of Utah) presented the vision of the Utah Real Estate Market….
He made the prediction that Utah real estate market prices will DOUBLE again in the next 8-9 years.
That’s about 12% appreciation per year that they are predicting.
Below are some interesting factors supporting the theory that housing market prices will continue to appreciate like crazy.
Utah Leads Country in Rate of Population Growth.
Utah up 18.4% population change in the last 10 years.
Our state is growing like crazy, and our economy is thriving. But what does this influx in population mean for the housing market? It means that prices will inevitably increase as we have an unprecedented demand with record low supply. As more companies from the Bay Area continue to move here we are seeing a large increase in job force leading to record population growth in the last 10 years.
Other Factors Driving Up Housing Prices:
- Regulatory Delays
- Development Costs
- Zoning Ordinances
- Economic and Demographic Growth
- Land Costs
- Material Costs
- Labor Costs & Shortages
- COVID-19, Perverse Impact
- Housing Shortage
Other Market Indicators of Utah’s Housing Shortage:
- Rental Market – Vacancy rates remain low overall. Some submarkets softening.
- New Home Market – High rates building and demand.
- Existing Home Market – Price increases, sales and days on the market indicate shortage.
Forecast for 2021-22:
- In 2021 total sales( Single Family, Condos, Townhomes) at 12,400 units and 13,000 in 2022. Up from 11,800 in 2020.
- in 2021, Single Family prices up 20+% to median price of near $490,00. In 2020 Median Price was $380,000. Bold prediction for 2022, price increase less than double-digit.
In 45 years of study and research conducted by the UCAR and Gardner Institute the Utah housing market the past 9 months has been the craziest they have ever seen in terms of days on market, auctions, and offers above list price. Time to start buying more houses.
Source: Utahrealestate.com, UCAR Housing Summit 2021