Utah Home Prices Overvalued, Won't Be Decreasing Any Time Soon According to Real Estate Experts
The Salt Lake Area is going to continue to see inflated home values for the foreseeable future, according to a recent article on Fortune.com. CoreLogic, the California-based real estate research company, provided an assessment of 400 metropolitan areas, including 6 Utah markets - Provo, Orem, Salt Lake City, Ogden, Clearfield, and Logan.
Here's how they ranked for the odds of home prices dropping over the coming year:
Provo, Orem, Salt Lake City, Ogden, Clearfield, and Logan ranked very low. That's a 0-10% chance of prices dropping.
For how CoreLogic rates home prices in America's largest housing markets, all six cities were categorized as overvalued.
Northern Utah mortgage experts Dave Osofsky and Katie Stratford from Bluefish Home Loan Team had this to say, "First, the premise about the Fed raising interest rates to slow home price increases is incorrect. The Fed is raising interest rates to fight inflation, slowing the housing market would be a side effect of higher rates, but also the Fed increasing short term interest rates doesn't even necessarily increase mortgage rates. The Fed raised rates 50 bps last week and mortgage rates have come down a little. As far as the housing market goes, The Salt Lake Area is in no danger of slowing any time soon, we have an incredible amount of demand and very limited inventory.
The economy here is great, there are large families, not a lot of places to build, and a lot of out of state buyers moving in. Our market is likely to be very competitive and continue to appreciate for years to come"
"I think this article is spot on for the Utah market. With the current and future projected increasing interest rates, I think properties are going to start selling at market value due to there being fewer qualified buyers and we will move away from the multiple offers above market value craziness that we've seen over the last 12 months.", Anne Tuckett from Signature Real Estate Utah said about this report.
Kristina Leikam at Signature Real Estate Utah commented, "Home prices are influenced more by supply and demand...low supply and high demand will keep Utah prices from falling. Regardless of increasing interest rates. I think we are still seeing the new work from home company policies affecting the housing market. People are still wanting to move away from higher priced markets and live in a better environment. Utah attracts these kinds of people."
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