Utah’s Current Housing Market: Trends and Insights

Remember your first Economics class? Think back to that section on supply vs demand. To give you a quick refresher, it's all about how when there's a limited supply of something, it starts to create a strong demand. As that demand goes up, so do the prices. Now, let's connect this concept to Utah Real Estate.

Utah has been on everyone's radar as one of the best places to live for quite some time. From world-class ski resorts to ever-expanding attractions, the booming tech industry (Silicon Slopes), and breathtaking outdoors in every direction, Utah truly is an amazing place to call home.

But here's the catch: as the word spreads about how awesome Utah is, we're facing a housing shortage. There simply aren't enough homes to meet the growing population's needs. In fact, by 2024, we're expecting a housing shortage of over 37,000 homes.

This shortage isn't just a random fact; it's a significant reason why home prices have remained high, even with rising interest rates. And it's likely to keep home prices relatively stable for the foreseeable future.

We recently posted about how home prices are holding strong in our market, even when interest rates hit 8% this year.

(Check out our reel for more details!) This is directly linked to the shortage of available homes in the market and the increase in the number of households.

Now, let's talk about the latest remarks from Jerome Powell, Chief of the Federal Reserve, on November 1st, 2023. The Federal Reserve made no changes to the interest rates, but they're closely monitoring inflation and economic growth, as well as job creation, to determine their next moves. This leaves many of our buyers and sellers wondering, "What's going to happen to rates in 2024?" The answer is, it's a bit of a balancing act. If rates ease up, we'll likely see buyers who've been waiting on the sidelines jumping back into the market, which could drive prices up. But if rates keep climbing, we may continue to see trends similar to what we've experienced in 2023.