Are We Shifting from a Seller’s Market to a More Balanced Market in Utah? A Realtor’s Guide

by Emma Romney

Utah’s real estate market has been dominated by seller-friendly conditions for several years: tight inventory, rapid appreciation, short days on market, and strong demand. But in mid-2025, several key metrics suggest that Realtors should be paying close attention to signs of a cooling market. Below are the current indicators, what they mean, and how agents should adjust their strategy.

Key Market Indicators Showing a Shift

Realtors should monitor these metrics closely. Many are already pointing toward a more balanced or at least less heated market in Utah.

Indicator	What Data Is Saying	Why It Matters
Inventory / Active Listings	Homes for sale in Utah rose about 22.3% year-over-year in July 2025. (Redfin) Salt Lake County saw active listings jump to ~2,410 in 2025 vs ~1,700 in 2024 — the highest level in ~8 years. (Reventure News) The statewide inventory, compared to pre-pandemic levels (2019), has increased notably. (The Salt Lake Tribune)	More choice for buyers → less urgency, fewer multiple-offer wars. As inventory increases, sellers lose some of their leverage.
Appreciation / Price Growth	Utah home values are up only about 0.8% YoY as of July 2025. (Redfin) Zillow shows +1.5% over the past year statewide. (Zillow) In Salt Lake City, the median home price declined ~6.7% YoY in July. Salt Lake County value growth ~2.8% in 2025 (vs very high double-digits in prior years). (Reventure News)	Slower price gains mean less risk of boiling over, more realistic pricing by sellers, and more negotiating room for buyers.
Days on Market / Time to Contract	In some areas, days on market have increased significantly. Homes that used to go under contract in days or weeks are now staying on the market longer. (The Salt Lake Tribune) Median days on market in Utah ~ 45 days (all home types) in July 2025. (Redfin)	Longer DOM gives buyers more time to compare, inspect, and negotiate. It pressures sellers who are used to quick sales.
Price Reductions / Concessions	In Salt Lake County, ~34.4% of active listings have had price reductions in 2025. This is well above historical averages. (Reventure News) Sellers are offering concessions (closing cost help, interest rate buydowns, etc.).	Sellers need to be more flexible. Concessions shift some negotiating power back to buyers.
Months of Supply / Absorption Rate	Utah has ~4 months of supply (homes for sale divided by the number of homes sold per month) in some reports. (Redfin) This is up compared to prior periods. (Bankrate)	Generally, a 5-6 months supply is considered balanced. Less than that is a seller’s market; more shifts toward a balanced or buyer’s market—increasing months of supply signals less seller dominance.

What This Shift Means for Realtors

As market conditions shift, a Realtor’s strategy needs to adapt. Here are tactical takeaways for listing agents and buyer agents.

For Listing Agents

Pricing Realistically: Overpricing is increasingly risky. With price reductions rising, listings priced aggressively high may sit too long or require cuts, which can reduce buyer confidence.
Presentation & Marketing Matter More: When competition increases, listings must stand out. High-quality staging, great photography/video, and smart use of digital marketing (social, MLS, virtual tours) are essential.
Manage Seller Expectations: Many sellers may assume values will keep rising like they did in 2021-2022. Educate on cooling appreciation, on what multiple offers look like now, on typical concessions buyers expect, and on realistic timelines.
Be Proactive About Price Adjustments: Monitor DOM; if showings drop or feedback indicates pricing is high, be ready to adjust earlier rather than later.

For Buyer Agents

Leverage Increased Inventory: More active listings mean more choice. Help clients explore neighborhoods or housing types they might not have considered before.
Negotiate Concessions: Price reductions, seller credits, repair allowances, closing cost assistance – these are more available now. Teach buyers to ask.
Push for Contingencies: With less desperation among buyers, contracts can include smarter contingencies without losing competitiveness.
Educate Buyers on Value vs Hype: Buyers may expect bargains, but in many areas, seller leverage still exists. Clear guidance on actual comps, trends, and risks is essential.

Is Utah Fully Balanced or Still Leaning Seller-Friendly?

Based on the data as of mid-2025:

The market is shifting toward a balanced state, but it is not yet a pure buyer’s market in most Utah metros.
Sellers still retain some advantages, especially in desirable neighborhoods, new construction, or in areas with constrained supply.
Buyers have more negotiating leverage than in peak seller’s market conditions, but “buyer’s market” dynamics (where buyers dominate) are not uniform.

Implications for Strategy & Forecast

In metros like Salt Lake City, price declines year-over-year suggest more sensitivity to interest rates and affordability pressures. (Reventure News)
If mortgage rates remain elevated, buyer demand may soften further, pushing us further toward balanced or even buyer-leaning in some sectors.
New construction and permit activity will influence supply; slower building may help stem downward pressure in specific price tiers, but existing inventory remains a key factor.