Utah Real Estate Market: Predictions for 2024

Utah homes continued to sell at eye-popping prices last month. The median home sale price rose 7.3% year-over-year from $508,300 to $545,200 in January. The number of homes sold also increased by 607 homes to 2,576.

Interest rates are at 7.28%, but is Utah still a seller’s market? Let’s look at the facts.

Park City homes sold for a median sale price of $2,470,000 in January, up 47.5% year-over-year. Homes in St. George sold for a median sale price of $485,000, a 11.9% increase year-over-year.

Interest rates are at record highs, with few home buyers. But the inventory is so low that 22.20% of homes sold above the list price!

• If you are a home buyer: You can avoid bidding wars and avail seller concessions if you buy a home now. The 8.5% interest rate and mortgage payments are significant, but rates are unlikely to drop in the next few months. If they do, you can refi.
• If you are a home seller: You can lock in Utah’s high home prices. The scarcity of homes in UT makes it a seller’s market. Homes listed on MLS sell faster and for 17.5% more than off-MLS homes. That could be thousands of dollars in additional proceeds if you sell via Houzeo.

The current Utah real estate market statistics doesn’t reflect the national trend of high demand and low supply. Despite the strong housing demand, home sales tanked. The property prices in Utah have increased regardless.

So, How Is the Real Estate Market in Utah?

Swell! Home values in Utah rose by 57.8% in the last 5 years. Home sales increased by 30.8% in January 2024 YoY despite the mortgage rate climbing to 7.28%! So, Utah’s housing market is strong, if not bullish.

Even if mortgage rates continue to increase alarmingly, home sales will not falter. So, if you want to sell a Utah property, now is the right time to list it on MLS.

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Utah Real Estate Market Statistics

• Average Home Prices: The average median home price in Utah is $545,200, up by 7.3% YoY. In 2024, the median sale price will keep increasing marginally due to UT’s tight inventory. The sale-to-list price ratio is at 98.90% in Jan 2024.
• Home Sales: As per January 2024 data, home sales increased by 30.8% YoY! In January 2024, 2,576 homes were sold, up from 1,969 in January 2023.
• Average Rent Prices: Rental costs vary statewide. An average tenant in Park City pays $4,444, while the one living in Logan pays $1,384.
• Median Days on Market: The median days on the market for homes for sale was 55 days.
• Pending Sales: The number of homes for sale increased by 5.7% YoY compared to 2023. Currently, there are ~11,000 homes for sale in Utah.
• Months of Supply: The average months of supply is 3 months. UT’s demand can’t be satiated with the low supply. While the months of supply is low, it is still above the national housing market.

Utah Housing Market Predictions 2024

Utahns have survived the shockwaves of skyrocketing mortgage rates and rising home prices of 2023. Here’s what we predict for Utah’s housing market:

1. Home Sellers Will Return to the Market in 2024: Sellers who chose the sidelines in 2023 will come back. Especially those who can’t avoid new jobs or want to move to a cheap place. Whitney, the analyst who predicted the 2008 financial crisis accurately, has forecasted that baby boomers looking to downsize will also add up to 30 million housing units. Yowaza!
2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain above 6%, but they will stabilize in the second half.
3. The Number of Home Buyers Will Rise: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
4. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across UT YoY, reaching $545K in January 2024. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes.
5. New Home Constructions Sales Will Increase: 12.3% of homes purchased in September were new homes, the highest since 2022. Home builders offered $30,000 worth of concessions to attract buyers in 2023. We think builders and sellers will compete for buyers in 2024.
6. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. They offered 86% in 2022 and around 70% in 2023. Opendoor and Offerpad have lost billions of dollars in 2023. As they struggle to survive, they will make lowball offers.

Bonus Prediction: Buyer Broker Commissions Will Be Negotiable!

In a shocking turn of events, the jury in Missouri awarded more than $5 billion in damages to the Sitzer-Burnett plaintiffs. This motivated nationwide home sellers to file grievances against NAR’s Cooperative Compensation Rule.

NAR’s Cooperative Compensation Rule or Participation Rule states that listing brokers must offer competitive compensation to buyer agents if they want to list properties on a NAR-affiliated MLS.

Lawsuits like Moehrl, Gibson, Batton, Nosalek, and Batton 2 challenge the Participation Rule. They accuse NAR and other top real estate companies of colluding and conspiring to keep agent commissions high.

If the jury also finds the defendants guilty in these cases, buyer agent compensation may change. Buyer agents may become obsolete by 2025! Phew.

While buyer agents are unlikely to be obsolete in 2024, they may be open to negotiating commissions. That’s probably how they will still have some skin in the game.

When Will the Housing Market Crash in Utah?

A housing market crash in the Beehive State is unlikely.

The average cost of living in Utah is $43,653. Utah currently has a population of around 3.3 million, with Lehi being the fastest-growing city. The Beehive State also falls under the states with the lowest crime rate in the whole nation.

The state ranks 1st for being the best state in the entire U.S. Utah has an average effective property tax rate of only 0.58%, which is quite below the 1.10% rate that is currently prevailing in the country.

Utah’s unemployment rate is at 2.7%. Utah private-sector employment has increased 3.3% over the past 12 months. Utah’s well-maintained transportation system, affordability, natural beauty, and low crime rate will draw homebuyers in 2024.

2024: Is It a Buyer’s or Seller’s Market?

2024 will be a terrific market for sellers. (And buyers, too!)

Home prices in Utah are rising and will continue to rise till the supply-demand dynamic changes. The number of houses for sale in UT was only 11,701 in January 2023. There is minimal inventory to satiate the demand from house hunters. This also makes it the best time to sell a house in Utah.

In fact, new listings rose after the mortgage rate plummeted from a two-decade-high rate of 8% to 7.35% in November. This shows that those who refused to sell due to mortgage rate lock are finally acclimatizing to 7% rates. Come Spring 2024, more homeowners will follow suit and list properties on Utah MLS.

As home listings in Utah increase, home shoppers hugging the sidelines will also return. The recent uptick in mortgage applications shows that buyers are returning.

House hunters who could not find affordable homes in 2023 will also start shopping in 2024. The demand for Utah houses will increase – and that’s why sellers may be able to dominate the market.

However, new builds will compete for attention from buyers. Home builders have persuaded buyers to buy new construction homes with mortgage buydowns worth $30K in 2023! Builders will continue offering concessions in 2024, and home sellers may have to wage wars against them.

Listings of new constructions, baby boomers looking to downsize, and desperate home sellers will flood the market in 2024. The properties for sale in Utah will increase. So, whether you are looking for a condo in Park City or seeking to live in a co-op in Vernal, you will find your dream home next spring.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

Frequently Asked Questions about Utah Real Estate Market

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