Salt Lake City tops another national list for its hot real estate market, this time surpassing even its closest competitor – Boise, Idaho.
And if you’ve been hoping the Wild West real estate market might calm down in 2022, don’t hold your breath.
Realtor.com has ranked Salt Lake City as the #1 housing market positioned for growth in 2022, forecasting Metro will see 15.2% year-over-year sales growth and an increase prices by 8.5% year-on-year.
Salt Lake City beat Boise’s projections of 12.9% year-over-year sales growth and 7.9% year-over-year price growth.
That’s even though Utah and Idaho have already had banner years as the Western housing market continues to rage. In Utah, experts have warned of a “severely unbalanced” housing market as demand continues to dramatically outpace supply.
Here’s how the Top 10 Subway rankings stacked up:
- Salt Lake City, Utah.
- Boise City, Idaho.
- Spokane-Spokane Valley, Washington.
- Indianapolis-Carmel-Anderson, Indiana.
- Columbus, Ohio.
- Providence-Warwick, RI, Mass.
- Greenville-Anderson-Mauldin, South Carolina.
- Seattle-Tacoma-Bellvue, Washington.
- Worcester, Massachusetts-Connecticut.
- Tampa-St. Petersburg-Clearwater, Florida.
Utah governor not ‘excited’ about rankings
Asked about the ranking on Thursday, Utah Gov. Spencer Cox told reporters he wasn’t thrilled to see Salt Lake City top the list.
“It’s actually not a ranking that I’m proud of,” Cox told reporters. “It’s not a classification that pleases me. Because it puts extra pressure on families, which means people are pushed out.
As Utah home prices have soared at an “unfortunate” and “unsustainable” rate, Cox said more Utahns have been forced to move to the outskirts of the Wasatch Front in order to s offer a house. But even those more affordable places, the governor said, “are also increasing, which means that ultimately you end up with more homeless people.”
Cox on Tuesday unveiled its proposed budget for next year, which includes spending $228 million on housing initiatives. This involves approximately $100 million for affordable housing development and $128 million to develop highly affordable housing for the homeless, including up to $20 million to help pay for the first phase of a small village. planned residential in Salt Lake City.
The blistering pace of Utah’s housing market and its impact on Utahans “is why we think these investments are so important,” Cox said.
The governor said his proposed budget is expected to result in about 1,100 new low-income units statewide.
Housing Market Forecast 2022
Realtor.com has predicted a “whirlwind year” for homebuyers in 2022, projecting a competitive seller’s market as demand from first-time buyers continues to outpace inventory.
“With listing prices, rents and mortgage rates all set to climb as incomes rise, 2022 will present a mix of housing affordability challenges and opportunities,” Realtor.com wrote on its site. “Whether the pandemic has delayed plans or created new opportunities to move, Americans are set for a whirlwind year of home buying in 2022.”
Realtor.com predicts that more sellers will enter the market as competition among buyers “remains fierce,” fueling strong growth in home sales and price increases. The site forecasts existing median sales prices to appreciate 2.9% and existing home sales to increase 6.6%. This growth will result in 16-year highs for sales nationwide.
“Affordability will increasingly be a challenge as interest rates and prices rise, but working remotely can broaden areas to search and allow young buyers to find their first home sooner than they can. wouldn’t have otherwise,” the site says, noting that more than 45 million millennials will be in the “prime first-home buying ages of 26-35 in 2022.”
While some housing markets are expected to see home sales decline, “these declines will likely be modest,” Realtor.com said, and most other metro markets are expected to follow the national trend and increase in 2022.
The site predicts that house prices will continue to rise, but at a more moderate pace than in 2020 and 2021. “The pandemic has triggered a frenzy in the housing market,” the site says. “A decades-long shortage that meant the market was already short by 5.2 million single-family homes was met with an unprecedented surge in demand, just as many expected the opposite response to the uncertainty of the pandemic.”
As builders struggled to keep up with strong demand, that pushed prices higher. In August 2020, the country saw a double-digit increase in house prices throughout the year. Realtor.com predicts that economic growth will support the purchasing power of homebuyers, leading to a continued rise in home selling prices.
But in 2022, Realtor.com predicts a “more moderate pace” as builders step up and “homebuyers will grapple with higher monthly costs due to rising prices and rising mortgage rates.” “.
“Affordability issues will keep prices from advancing at the same rate we saw in 2021, even though current supply and demand dynamics mean prices continue to grow nationwide.”