SALT LAKE CITY (KUTV) — Utah home values may continue to grow or at least hold steady if an economic slowdown or recession hits in the next two years, according to two real estate experts.
Home prices are climbing more slowly than the past few years, from double-digital annual growth to about 7% per year, according to James Wood, senior fellow at the Kem C. Gardner Policy Institute.
“We’re due for a little bit of a slowdown in housing prices,” he said.
Wood, who’s studied the state’s housing market since the 1970s, said an economic slowdown might slow appreciation to 4% per year.
“A recession would probably get us close to a stable or no growth in prices for a year or two,” Wood said.
He put the likelihood of home prices falling in the next two years at 25%.
Tyler Parrish, associate broker at Windermere Real Estate, said there’s only been a slight cooling of the housing market this year. He called the growth “out of this world,” with multiple offers on many properties.
Parrish said if the looming recession materializes, he’s not expecting prices to drop.
“My insight would be that prices might flatten a little bit, calling it a little bit of a correction,” Parrish said, “but a correction might not be the worst thing in the world.”