The Park City or Summit County homes on Zillow may not actually be for sale. File Photo: Daniel Acker/Bloomberg/Getty
UTAH — Home buyers could face bidding wars in the coming months with increasing home prices entering the market.
The National Association of Realtors (NAR) said while homes sales dropped 10% in March, prices still increased nearly 8%. That’s because there are still more buyers than sellers in the market right now.
But, it is expected to get even worse. Both the NAR and the website Zillow predict inventory of homes will drop somewhere between 30-40% in the next few months. But, as coronavirus restrictions are lifted, many home buyers will be jumping at the lower interest rates.
That could cause bidding wars and home prices to skyrocket.
That doesn’t bode well for Utahns. A new report from Construction Coverage said the Beehive state is already the 15th toughest market for first-time buyers.
Experts say housing markets in the West are most likely to continue to rise than the rest of the nation, mostly due to lack of inventory. But they also state all real estate is local.
Prices going up or down will depend on whether the economy in those areas are mostly driven by leisure and hospitality, technology or the oil industries.