The real estate market has gone through some big changes this year and after 10 years of significant appreciation, how could it not?
I was out to lunch with a client, and at least three times he told me, “The housing bubble has burst,” and, “the market is crashing.” Perception isn’t always reality. In fact this is the definition of F.E.A.R – False Evidence Appearing Real.
Let’s talk about what truly happened to the housing market in Utah.
From 2007 to 2011, Utah home values dropped by 22-24%, and people thought it was the end of the world. At first glance, and having sold real estate during that time, that is a significant drop, but keep reading…
From 2012 to 2019, the average home value went up by 69%. That’s not a typo. That was record appreciation for any time in the history of the housing market.
A real estate cycle is typically five to seven high years followed by five to seven low years. However, from 2020 to 2022, home values rose by another 62%!
The historic average home appreciation rate in the United States is 4-5% annually, so going up 62% in less than three years is astronomical, baffling, and simply unsustainable.
Since May of 2022, home values in many areas of Utah have decreased by about 10%. Yes, that’s an abrupt shift. However, the media has created a public perception that the market crashed.
Utah home values have gone up 131% since 2012, so the recent 10% dip is not a big deal. Isn’t that a deal you’d do every day? A net 120% appreciation on an asset over ten years?
People are still buying and selling real estate.
If you have a need or desire to move right now, let’s have a conversation. Of course, it may not be your time! But then again, it may be.
Don’t believe the sensationalist news articles, and don’t put your family’s plans on hold because of something you picked up on KSL.com or Fox News. Instead, get accurate information from a grounded source of information who has seen both the ups and downs in the market over the past 16+ years.
If you have any real estate questions or are looking to buy or sell your home in Heber City, Midway, Utah or Salt Lake Counties, please reach out to me with any questions. Please reach out to me at (801) 885-2558 or by email at brandonrwood19@gmail.com.