SALT LAKE CITY — Utah homes prices skyrocketed in 2021, shattering the previous record set over 40 years ago, and have no signs of slowing down, according to a housing report by the realtor RE/MAX.
Home prices rose by 27% last year, eclipsing the previous record of just over 20% set in 1978.
Low interest rates and low inventory fueled the increase, among other factors, according to RE/MAX President Nick Bailey.
"What’s promising for 2022 is that many of the factors which drove record sales in 2021 remain in place. Interest rates are still attractive, workplace flexibility continues, and many homeowners are sitting on a mountain of equity,” said Bailey.
“The winners through 2021 were homeowners; the 700,000 homeowners in Utah realized an increase in home equity of at least $82 billion," said Utah RE/MAX agent Jen Horner.
"Unfortunately, those who rented represent the other side of the coin. The 300,000 renter households in Utah had no increase in wealth and faced double-digit increases in rent."
It's expected that housing prices will have double-digit increases again as Utah's population continues to grow and inventory remains relatively scarce.
"Utah is the only state since 1900 where the home ownership rate has never fallen below 60%," said Josh Horner with RE/MAX, so he expects the real estate market to keep booming.
Go here to read the full RE/MAX national housing report.