Estimated read time: 4-5 minutes
After years of dizzying price hikes and relentless bidding wars during the COVID era, Salt Lake's housing market is finally sobering up — but is relief truly in sight?
According to the newly released 2025 Housing Forecast from the Salt Lake Board of Realtors, authored by James Wood of the Kem C. Gardner Policy Institute, Utah homeowners and buyers alike are experiencing the effects of the market's recent excesses. From record-breaking spikes to today's more tempered pace, the report sheds light on what homeowners and prospective buyers can expect in this year's housing market.
The report noted that overheated asset markets from 2020 to 2022 significantly contributed to today's high inflation, elevated home prices, and increased mortgage rates. Consequently, home price growth has moderated. As of the fourth quarter of 2024, the Salt Lake metro area ranked 29th in single-family home prices among 226 U.S. metros, according to the National Association of Realtors. During this period, home prices in Salt Lake increased by 5.5% year-over-year.
"We are now in a hangover period from those anomalous years," Wood said. "In 2021 alone, Salt Lake County home prices jumped $108,000 — a 25% increase."
Why are housing prices so high in Utah? The state's rapid demographic and economic growth from 2010 to 2022 played a key role, as demand consistently outpaced supply. Other contributing factors included rising land costs, restrictive local ordinances, and escalating material and labor expenses. However, a price correction is underway.
Over the past two years, the median price of a single-family home in Salt Lake County rose by only 1%, from $606,000 in 2022 to $610,000 in 2024. Meanwhile, condominium prices (including townhomes and twin homes) fell about 1% during the same period, from $430,000 to $425,500.
Looking ahead, Wood projected that demographic and economic growth would slow in 2025, while ongoing affordability challenges — resulting from excesses in the 2020–2022 market — would continue impacting home sales. Despite these headwinds, condominium sales in Salt Lake County are expected to rise by 8% this year, with single-family home sales forecast to increase by 3%.
In 2025, the median sales price for a single-family home in Salt Lake County is projected to reach $620,000 — a 2% increase. Condominium prices are expected to rise by 6%, reaching a median of $450,000. Overall, the combined increase for homes and condominiums is anticipated to be 3.3%.
Lawrence Yun, chief economist of the National Association of Realtors, noted that nationwide home sales have struggled over the past two years due to mortgage rates lingering just below 7%. However, homebuilders — responsible for approximately 10% of total sales — have seen a rebound to pre-pandemic levels. Nationally, home sales began rising in October last year, continuing year-over-year growth through January.
Yun added that housing inventory has improved as listings increase. Approximately 88 million homeowners exist nationwide, with about 35 million owning their homes mortgage-free. "Many people don't have any mortgages, and they can move at any time," Yun explained.
Highlighting the value of homeownership, Yun noted that in 2024, the median net worth of homeowners was $415,000, compared to just $10,000 for renters. "You have to own property if you want to be in the wealth-accumulating class," he said.
"Even at higher interest rates, we're seeing increased activity because inventory levels have started recovering," Yun said. "If national debt can be managed effectively, mortgage rates could potentially dip below 6%."
Nationwide, Yun predicted existing home sales would rise by 9% this year, with Utah expected to outperform the national average. "Conditions for increased home sales are clearly developing," he concluded. "I anticipate mortgage rates will range from 6% to 6.5% after we pass through the spring home buying season."
About the Salt Lake Board of Realtors
The Salt Lake Board of Realtors® is the Wasatch Front's voice of real estate and the top source for housing market information. As the largest shareholder of UtahRealEstate.com, one of the leading Multiple Listing Services (MLS) in the United States, the Salt Lake Board of Realtors® has promoted homeownership and protected private property rights since 1917. It empowers its members through continuing education, advocacy, and adherence to a professional code of ethics.
About UtahRealEstate.com
Founded in 1994, UtahRealEstate.com is the leading provider of real estate technology in Utah and one of the largest multiple listing services in the United States. The company provides one of the top-ranked real estate websites in the country, serving more than 8 million consumers each year. It also provides multiple listing services to approximately 20,000 real estate professionals, accounting for nearly 97% of all Realtors® in the state of Utah.
