Utah's Rapid Housing Price Acceleration

Utah's housing market in Salt Lake County has experienced significant growth in prices over the years, with a substantial increase in median sales price. The real estate industry has seen a surge in commissions, benefiting agents and brokers. The forecast for 2022 predicts a continued housing shortage driving prices up, with mortgage rates expected to slightly increase. Despite concerns of a housing bubble, the year is anticipated to be another strong one for Utah's real estate sector.

• Utah
• Housing market
• Real estate
• Housing prices
• Salt Lake County

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Uploaded on Mar 08, 2025 | 0 Views

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Presentation Transcript

2. Utah Is Prone to Rapid Acceleration of Housing Prices, (quarterly year over

3. Rank 100 Metro Areas 2nd to Austin 2nd to Boise Salt Lake Percent Change US Metropolitan Area Change 1991 to 2021 3Q 601.9% 246.9% Last 5 years 3Q 2020 to 3Q 2021 84.6% 51.9% 28.1% 6th 18.5% Source: Federal Housing Finance Agency.

4. US Compared to US Median Median Price Salt Lake Median Sales Price Metropolitan Area Rank First Quarter 2007 $206,900 53rd $212,300 97.5% Third Quarter 2021 $500,000 24th $363,700 137.5% Source: National Association of Realtors.

5. Total Value of Owner-Occupied Units (billion) Average Price Year 2020 $438,792 $307.2 2021 $556,146 $389.3 Windfall 26.90% $82.1 Source: Derived from UtahRealEstate.com

6. $3,043 $4,000 $3,500 $2,211 $3,000 $1,743 $2,500 $1,287 $2,000 $1,500 $445 $321 $1,000 $226 $163 $67 $67 $500 $0 P&I Taxes PMI InsuranceMortgage Pmt Income required (DTI = 36%) 2015 = $58,100 2021 = $101,400 2015 2021 Source: UtahRealEstate.com and Kem C. Gardner Policy Institute

7. Price Increase Havent Slowed Down, Salt Lake County 26.7% 26.5% 30.0% 24.3% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% March September September May September May November May November November March March July July July 21-Jan 19-Jan 20-Jan Source: UtahRealEstate.com

8. Winners: Real Estate Agents and Brokers Commissions (Millions) Year Sales 2015 17,268 $246.6 2016 18,013 $274.4 2017 17,944 $302.2 2018 18,077 $329.8 2019 18,010 $352.8 2020 19,039 $416.2 2021 17,653 $480.8 Average/Increase 18,001 $234.2 Source: UtahRealEstate.com.

9. Forecast 2022 for Salt Lake Real Estate Industry Housing shortage will continue pushing prices. Housing bubble very unlikely. Mortgage rates increase slightly to 3.55%. Sales repeat 17,000-18,000 transactions. Housing prices to increase by 10-12%, hopefully final year of double-digit increase. Commissions up another $50 million. Another boom year for the Utah s real estate industry platinum age of real estate.