Hot Property Alert: Utah’s Wasatch Front Real Estate Market Is Poised for Growth

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

We’re halfway through 2023—what can we expect to see for the rest of the year in the Utah real estate market, specifically along the Wasatch Front? Today I’m sharing my market observations and predictions for the rest of 2023.

So far, this year has been consistent with what we’ve observed. There is a possibility of slight decreases in interest rates, which could lead to an increase in home prices, demand, and more people moving. Currently, we are still experiencing a seller’s market with more buyers than available homes for sale, giving sellers the advantage in negotiations.

However, it’s important to note that the market dynamics are not as intense as they were one or two years ago when we saw multiple offers and monthly price increases of 2% to 4%. This year, we might see an overall appreciation rate of 2% to 4% for the entire year, which is more in line with a normal market trend.

Buyers in today’s market are primarily motivated by factors such as being first-time homebuyers or having a pressing need to buy. On the other hand, sellers are listing their homes due to reasons like relocation, job transfers, financial situations, or life events such as death, divorce, or marriage. These factors continue to be the main drivers of people’s decisions to move.

For those who have the flexibility to stay, most are not considering trading their current low interest rates (around 2% or 3%) for higher rates (around 6% to 7%). However, as interest rates potentially decrease, a new segment of the market may open up, one that we haven’t seen for a while.

It’s worth mentioning that many buyers today are choosing to buy down their interest rates by paying a bit more upfront to secure a lower rate. This can be for a short-term or long-term period, depending on their preferences and circumstances.