If you bought a house in one of these Utah cities, you might have paid too much

A “on the market” signal and “sale pending” signal are pictured in Salt Lake Metropolis on Monday, Oct. 18, 2021.

Kristin Murphy, Deseret Information

When you purchased a house in Ogden, Provo or Salt Lake Metropolis within the final month, there’s an excellent probability you overpaid.

That’s in keeping with researchers from Florida Atlantic College, who compiled open-source information from Zillow and different suppliers in a examine that lists the 100 most overvalued markets within the U.S.

The examine exhibits that of the ten most overvalued housing markets within the nation, three are situated alongside Utah’s Wasatch Entrance — coming in third total is Ogden, the place patrons are paying over 57% greater than what their house is valued at, based mostly on previous pricing traits.

With a 51% premium, Provo is ranked fifth. Salt Lake Metropolis, the place patrons are paying over 48% greater than they need to, is ranked ninth.

Taking the common or anticipated value change, researchers have been offering a month-to-month estimate of how a lot a market’s housing inventory is over or undervalued, “relative to its historic pricing,” a press launch reads.

Unsurprisingly, the West dominated the highest slots. Listed below are the highest 10 most overvalued communities, in keeping with the examine.

1. Boise, Idaho, the place houses are promoting at a 76.63% premium.
2. Austin, Texas, at 60.02%.
3. Ogden, Utah, at 57.36%,
4. Phoenix, Arizona, at 51.21%.
5. Provo, Utah, at 51.17%.
6. Las Vegas, Nevada, at 51.04%.
7. Spokane, Washington, at 50.04%.
8. Atlanta, Georgia, at 49.97%.
9. Salt Lake Metropolis, Utah, at 48.51%.
10. Detroit, Michigan, at 47.64%.

“When you’re shopping for a house in these metros ... it’s crucial that you already know you’re shopping for near the height of the market,” stated Ken H. Johnson, an economist at FAU and one of many examine’s researchers.

In a press launch, Johnson famous that Florida and Ohio are probably the most represented states on the checklist — seven markets in Florida and 4 in Ohio are listed within the high third.

“The hazard is that costs will quickly degree off and even decline, and also you’ll be caught in that residence for a big period of time earlier than you may promote it at a revenue that makes monetary sense,” Johnson stated.

Ogden, Provo and Salt Lake Metropolis are the one three Utah communities listed. However throughout the board, housing costs within the Beehive State proceed to rise whereas potential patrons battle with a scarcity of stock.

In 2021, 24 of Utah’s 29 counties had double-digit achieves — Utah’s 700,000 owners noticed a rise within the residence fairness of at the least $82 billion.

“Statewide, housing costs elevated by 27%, shattering the 43-year-old report of 20.1% set in 1978,” the Salt Lake Board of Realtors stated.

In the meantime, 2020 stays the very best 12 months in Utah’s historical past for residence gross sales, with 19,202 houses offered in Salt Lake County. Although 2021 was on tempo to turn out to be the second greatest 12 months, residence gross sales slowed in the course of the second half of the 12 months.

Dave Anderton, spokesman for the Salt Lake Board of Realtors, advised the Deseret Information in December that record-high costs and low stock have turned some patrons off from the market.

“Gross sales have slowed. We’re coming off a report 12 months, 2020, which we thought was going to be a recession 12 months. It turned out the exact opposite,” he stated.