Year over Year Review 2020 vs. 2021
Boy, what a year in real estate! The highest appreciation jump I’ve ever seen in 1 year. No matter the county, houses sold for more, there were less of them and they sold even faster than 2020.
I don’t think anyone thinks appreciation can be this aggressive for long. Once the Fed starts raising rates, I anticipate a normalization of appreciation. Remember when 3-5% appreciation in a year was healthy? For people in the market when it happens, its going to feel like going from an all meat diet to being a vegan. It’ll be painful for some caught in the churn.
My personal opinion, we won’t see a dramatic price drop. We may see a dramatic reduction in appreciation but I don’t think anyone anticipates the Utah Housing Market crashing and burning with all the strong economic indicators we are enjoying.
