Will Home Prices in Utah Go Down in 2025?

Current Market Snapshot: Utah Home Prices in 2025

• Up modestly: Utah’s average home value stands at about $534,478, marking a +1.5% increase year-over-year as of July 2025. Homes go pending in roughly 25 days. (Zillow)

• Median sale price rising: In July 2025, the median sales price reached $561,600, a 1.0% increase year-over-year, while the number of homes sold jumped 3.0%, and housing inventory surged 21.8% year-over-year. (Redfin)

Forecasts: A Small Rise—not a Drop

• The Gardner Policy Institute anticipates a 2% rise for single-family homes and a 6% bump for condos in Salt Lake County in 2025. (KUTV)

• Dr. James Woods projects a 3% increase in home sales, with condos seeing 8% growth statewide. (Best Utah Real Estate)

• Real estate platforms predict moderate price increases nationwide, with no significant downturn expected. (KW Utah)

Utah’s Unique Dynamics: Rising Inventory & Buyer Leverage

• Utah’s inventory has grown significantly, doubling in size over the past three years. That’s easing pressure—but not enough to trigger a decline in prices. (The Salt Lake Tribune)

• Homes now stay on the market much longer—64 days on average, compared to under two weeks during the pandemic boom. Sellers are offering more concessions. (The Salt Lake Tribune)

• Salt Lake City remains in the top 10 hottest U.S. markets for 2025, thanks to high demand and low inventory. (Axios)

Regional Highlights: Not a Crash, but Slower Growth

Key Takeaways for Buyers & Sellers in Utah

Buyers:

• Prices aren’t falling, but rising inventory and longer days on market are giving you more negotiating power.

• Interest rates remain elevated, making affordability still challenging—acting while you qualify financially may be wise.

• The condo market is especially active, with an expected 8% sales growth, making them an appealing option for budget-conscious buyers. (Best Utah Real Estate)

Sellers:

• Price increases are still likely, but expect longer listing times and potential price adjustments.

• Prepare for a more competitive environment—emphasize staging, home condition, and marketing to stand out.

Location Insight:

• Salt Lake City remains ultra-competitive—not a price drop zone yet. (Axios)

• Other Utah markets may benefit from modest stabilization, but not significant declines.

Your Takeaway

No, Utah home prices are not expected to decline in 2025. Instead, expect modest gains—roughly 1–2% for single-family homes and up to 6% for condos. Higher inventory and slower turnover offer more buyer leverage, but prices remain stable or are inching upward, especially in competitive markets like Salt Lake City.