UTAH (ABC4) – Buyers looking to purchase a home in Utah know the real estate market has been rising steadily over the past few years.
Whether you’re a first-time homebuyer or looking to expand your property portfolio, navigating the Utah real estate market can be quite daunting.
In a new study by Florida Atlantic University, researchers took a deeper dive into the current U.S. real estate market. The study sought to find the most overvalued and overpriced housing markets in the country right now.
Three Utah cities have been ranked among the Top 10 most overpriced housing markets in the nation — Ogden, Provo and Salt Lake City.
HOUSING: Millennials are giving up on homeownership
The study analyzed open-source data from Zillow and other real estate providers to rank the Top 100 most overpriced metropolitan cities in the nation.
“The data allows readers to quickly see the premium or discount that they are paying in their metro, on average, and further allows them to make more informed decisions about their real estate investments,” researchers say.
The Top 10 most overpriced housing markets in the U.S. right now are:
- Boise, Idaho
- Austin, Texas
- Ogden, Utah
- Las Vegas, Nevada
- Atlanta, Georgia
- Phoenix, Arizona
- Spokane, Washington
- Provo, Utah
- Salt Lake City, Utah
- Charlotte, North Carolina
Here are the report’s finding’s on Utah’s most overpriced housing markets:
In Ogden, buyers are paying an average of 63.33% over the fair market value. As of March 31, the average selling price of an Ogden home sits at $524,514, while the fair market value is estimated to be $321,132 — a 63.33% markup.
In Provo, the average price of a home is $569,027 while the fair market value is estimated to be $368, 734 — a 54.32% markup.
In Salt Lake City, the average price of a home is $589,622 while the fair market value is estimated to be $383,450 — a 53.77% markup.
UTAH LIVING: One Utah city now among most diverse in the nation
The most overpriced market in the nation, according to the study, is Boise, Idaho with an average home selling price of $515, 926 while the fair market value is estimated to be $294, 512 — a 75.18% markup.
Earlier this year, Salt Lake City was named one of the fastest-growing housing markets in the country. Realtor.com predicted a 15.2% increase in home sales and an 8.5% increase in overall price change.
Unfortunately, buyers are faced with a trifecta of obstacles including inflation hitting a record 40-year high along with skyrocketing home prices and rising mortgage rates which have also hit a ten-year high this month. The current interest rate for a 30-year-fixed rate mortgage loan has hit 5.29%, forcing buyers to pay more than they ever would compared to years past.
“Home prices are up more than 20%, according to year-over-year data released by the S&P for February and the median home price in the United States has climbed to $375,000,” experts say.
UTAH INFLATION: This Utah county’s median home prices just hit over $600k
“A report by the Pew Research Center reveals that nearly half of Americans believe the availability of affordable housing is a major problem in their local community,” said Steve Perry, president of the Salt Lake Board of Realtors. “Further, 70% of Americans said young adults today have a harder time buying a home than their parents’ generation did.”
A new report found millennials in particular are struggling the most, with many giving up on the idea of homeownership altogether due to exacerbating financial barriers and a volatile housing market.
Fewer and fewer millennials are expecting to own a home in their lifetime. Survey data shows that 22% of millennials say they will never own a home. Down payment savings rates are very low among millennial workers. Only 16% of millennials report having savings over $12,000, and two-thirds of millennials report having no savings whatsoever.
To check out the full list of the country’s most overpriced real estate markets, click here.