What Does Housing Look Like in Utah in 2021?

Every indication is that the Utah housing market will remain strong during the coming year. Why? Kathryn J. Carlisle-Kesling, an attorney at Holland & Hart LLP in Salt Lake City, explains one reason is that Utah is business-friendly. “Utah is friendly to business and real estate investment alike,” she writes. “I can point to several policies to get an indication of what makes Utah business-friendly.”[1] Among those policies are: 1. Comparatively lower real estate property tax rates; 2. No transfer or conveyance tax on the transfer of title of real property; 3. Comparatively lower general recording fees; 4. Governmental incentives to develop multi-family and affordable housing; and, 5. Progressive zoning and land-use regulations that foster mixed-use, dynamic, new urbanism that optimizes residential and commercial utilization while providing for green space. “Propelled by rapid growth in Silicon Slopes and other local centers of innovation,” Carlisle-Kesling notes, “businesses are coming to Utah in droves.”

In addition to fair and reasonable real estate policies, two other factors draw businesses to Utah: infrastructure and available workforce. JP London, Salt Lake-based programmer, writes, “One thing we can have confidence in is Utah’s infrastructure. It is very solid and as long as we as a community of people stay focused on the trajectories ahead, I am confident our economy will move right along.”[2] When it comes to Utah’s workforce, Reporters from Latest LY observe, “Utah’s population is growing faster than any other state in America right now, partially due to migration, as well as natural birth rates. The state is home to … the country’s youngest average age in workers and innovators, high ranking schools, plenty of jobs, and a hot economy. … With a younger population in Utah, that means the state is going to be fueled by talent and support for decades to come – something many people are noticing.”[3]

According to Insurify, Utah is the fifth hottest real estate in the country. They note, “The real estate market in the Beehive State has certainly been a-buzz this past year. Utah scored 26 percent higher than the national average on its competitive market score, and it’s easy to see why. Utah’s bountiful natural landscapes and the ski-town suburban communities that have popped up around them are attractive to home-seekers in 2020. The Salt Lake Tribune reported that during the pandemic, an increasing volume of buyers from out of state have been flocking to Utah to invest in new property and settle down. From single-family suburban homes to luxury mountain properties, the high demand for real estate in Utah is unprecedented.”[4] The hot real estate market should continue in 2021.

Put all these factors together and the conclusion is obvious: Demand for housing will remain high and inventories of new and existing homes will be low. Journalist Holly Schuffet observes, “For sellers, this can be good news: the median home sales price is anticipated to rise 5% – 6%, and according to Norada Real Estate Investments, the turnover rate for homes is better than ever, with time spent on the market a whole 14 days less than that of a year ago. Not to mention, that sellers right now face much less competition than seen in a typical real estate season.”[5]

While a hot housing market is good for sellers, it’s a more complicated environment for buyers. Schuffet notes, “On the other side of the coin, entering the housing market as a home buyer could prove challenging in 2021. Not only are housing prices expected to continuously rise, but due to increased demand you should expect a competitive market. So, if you want to purchase a home, chances are that you’ll have to act fast to beat out competition.” The good news for buyers is that mortgage rates are, in the near-term, likely to remain near all-time lows. Nevertheless, Maurie Backman, a personal finance writer, cautions, “Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.”[6] In other words, this may be a rare win/win situation for buyers and sellers.

If you are looking to sell your home, or are in the market to buy a home, the team at Emily Hayes Homes is here to help. We provide the kind of personal service you expect and deserve from a real estate team. Having a knowledgeable team backing you in this competitive market will help make your real estate goals a reality.

Footnotes
Kathryn J. Carlisle-Kesling, “Utah’s continued momentum in residential and commercial real estate,” The Enterprise,” 12 October 2020.
[2] JP London, “Utah’s Economy in 2020 Resilient and Aligned with Good Fortune,” Style Utah, 6 October 2020.
[3] Staff, “Why Utah Has Become a Popular Home Destination for So Many Americans,” Latest LY, 29 December 2020.
[4] Staff, “Listed, Listed, Sold! States with the Most Competitive Real Estate Markets,” Insurify, 11 December 2020.
[5] Holly Schuffet, “2021 Real Estate Trends To Keep An Eye On,” Zing, 22 December 2020.
[6] Maurie Backman, “3 Housing Market Trends to Watch in 2021,” The Motley Fool, 22 December 2020.