Relocating to Utah? Housing Bubble concerns may not apply!
Are you considering relocating to Utah? You’re not alone, as Utah is one of the fastest growing states in the country with dozens of people relocating here every day. If you’re worried about our state being in a housing bubble, it might be time to rest easy and make your move! Here’s why...
What causes a housing bubble
A housing bubble is an asset price bubble that periodically occurs in the market. It is caused by a combination of factors, including low interest rates, easy credit, high demand, and speculation. When the bubble bursts, it can lead to a sharp decrease in prices and a decrease in the availability of credit. This can cause a recession, however not every recession has a housing crash. They are healthy and we need a correction from time to time.
The Wasatch Front’s housing prices have increased faster than majority of other states in America, but they were lower than the national average to begin with and may simply be "catching up" to the market.
Either way, this is leaving people wondering if we are headed for a crash. But are we actually in a housing bubble? No, we haven't hit the criteria, at least here in Utah we haven't.
Will we see a bubble burst in 2022 or 2023?
The Wasatch Front, which includes Northern Utah, is one of the hottest housing markets in the country. Despite concerns about a possible housing bubble, the market shows no signs of slowing down. In fact, there are more houses for sale now than there were a year ago (still well below normal levels) and buyer demand continues to stay steady.
Utah has a unique situation with its four seasons, HAFB, tourism, and the newly appointed "Silicone Slopes" that's creating thousands of high paying tech jobs here in Utah with many tech companies ditching the highly taxed Silicone Valley area in California for green pastures.
Interest rates are still historically low, demand continues to soar, and prices are growing at a steady rate. These three things point to Utah NOT being in a housing bubble. We are simply showing healthy signs of a low supply and high demand housing market with several factors driving it.
Utah's current market
As of right now, the average home in Utah is going for $334,000. The market has been steadily increasing for the past few years, with no sign of slowing down. In fact, more and more people are relocating to Utah every day.
The main reason for this is because the cost of living is still relatively low compared to other states, especially in Northern Utah. There are plenty of houses for sale and buyers seem to enjoy the prices being relative to wages in the area.
Considering investors and hedge funds are still buying every home they can get their hands on, which gives us even more confidence that the market isn't going to have a downturn here in Utah anytime soon, we actually foresee substantial growth along the Wasatch Front and the Wasatch Back to continue into 2023 and even 2024.
Things to consider as you're planning your move
When you're looking for homes for sale in Utah, be sure to work with a buyer's agent. They can help you navigate the market and find a home that meets your needs.
In addition, be aware that there is typically NO buyer's agent fee to have them show you homes, negotiated the best price, and handle all the paperwork/scheduling and now with ShowmeRebates.com, you can search homes all over the State of Utah and see what agents are offering for cash back rebates on each home!
Finally, remember that a real estate purchase is a big decision, work with a trusted, vetted, and proven agent to make sure the entire process is smooth from start to finish. ShowmeRebates.com has each agent rated from their past clients so you can see how well they have performed in the past with their customers.
Happy house hunting!