Utah Real Estate

Feeling daunted after the real estate roller coaster in 2023 is understandable, but the 2024 housing market is positioned for slow but steady growth and notable potential. Staying up to date on the latest information will be a valuable resource to mitigate uncertainty in an ever-changing market. Let’s see what insights experts have for both buyers and sellers in 2024:

INTEREST RATES

Interest rate fluctuations will be a key factor of influence on the 2024 Utah housing market. Last week, the Federal Reserve met for the first time this year and signaled that they are nearing the long-awaited interest rate cut.

Some economists previously predicted that the Fed could cut rates as early as March, however, the recent report indicated that the anticipated cuts may still be a few months away. As inflation cools, interest rates have passed their peak and will slowly but steadily decline throughout the remainder of the year.

The graphic below shows interest rate predictions throughout 2024 from three of the top real estate industry representatives. As shown, interest rates have already fallen from the record high of 7.79% last October and will continue to gradually decline as the year progresses, potentially reaching 5.8% by the end of 2024.

Although there is no way to perfectly predict financial forecasts, we are optimistic that now is one of the best times for buyers to enter the market with home prices at a 5-year low, and interest rates falling. Falling rates could favorably impact Utah buyers preparing to enter the market and should be an important consideration for sellers contemplating listing their homes.

HOUSING PRICES

Utah home prices fluctuate depending on the economy, interest rates, and demand. For years, competitive prices in Utah have been driven by a housing inventory shortage, yet high interest rates have recently kept home prices at bay.

When interest rates drop, buyers who have been sitting on the sidelines will begin to flood the market, eager to get their slice of the real estate pie. Home prices will increase as demand surges but will be offset by falling interest rates.

Both buyers and sellers can benefit this year because of the shift in interest rates, and consequently, prices. Buyers have the chance to enter the market while prices are low, and potentially refinance for lower interest rates in the future. Sellers will see higher prices and profit from their homes as interest rates fall throughout the year.

SUMMARY

Notwithstanding the constant changes in real estate, 2024 is expected to be a year of slow growth for the Utah market. Staying up to date with the latest information will prove to be an invaluable guide during the next leg of your real estate journey. Reach out to your realtor with any questions about Utah real estate in 2024.

SOURCES:

https://www.ksl.com/article/50861729/powell-federal-reserve-is-on-track-to-cut-interest-rates-though-not-likely-for-months

https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/

https://www.businessinsider.com/personal-finance/will-mortgage-rates-go-down-in-2024

https://www.deseret.com/2024/1/29/24046980/2024-utah-legislature-housing-affordability-zoning-reform

https://themortgagereports.com/61853/30-year-mortgage-rates-chart