https://kjzz.com/news/local/utah-housing-market-holds-steady-amid-iran-conflict-concerns
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SALT LAKE CITY (KUTV) – As the conflict involving Iran continued overseas, experts said the ripple effects were being felt at home, especially in the housing market.
Utah’s housing market held steady for now.
Rick Southwick, an associate broker with eXp Realty and a member of the board of directors for the Utah Association of Realtors, said Utah’s real estate market was quite resilient. But he also noted warning signs tied to the conflict in Iran.
“The downside, the impact of what’s going on overseas, has been increasing interest rates,” Southwick said.
Higher rates meant higher monthly payments, pricing some buyers out.
“As rates go up, it impacts how much the average homebuyer can afford. It has the most impact on first-time homebuyers,” he said.
Even a small jump in rates could have had a big impact.
“If we see rates go from 6% to 7%, we will lose 2,500 home sales throughout the Wasatch Front over the next year,” Southwick said.
Southwick said people were concerned about the conflict overseas and inflation, but he was not hearing that buyers were making different housing decisions because of it.
Dejan Eskic, a senior research fellow, said the uncertainty “really just thaws the market. People back off a little bit.”
He added that the rule of thumb for buyers was to purchase when they were comfortable and could afford it.
Experts said as long as the job market stayed stable, Utah’s housing market should remain steady. However, if interest rates continued climbing, that could quickly change.
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