Current Market Trends: What They Mean for Buyers and Sellers

January 27, 2025

Insights

An overview of the influences on the Salt Lake Area real estate market.

The last 5 years have seen some of biggest spikes and dips in real estate in our lifetime. After the record-low mortgage rates of 2020 and 2021 when properties were selling within hours of hitting the MLS, 2023 and 2024 saw rates climb back up above 5% and listings staying on the market for much longer time periods.

So, where are things today?

What is expected for the rest of this calendar year?

And what does this mean for buyers and sellers in the Salt Lake valley area?

Here’s an overview to get a better understanding

Current economic indicators suggest that mortgage rates will likely remain between 6.25% and 7% throughout 2025, continuing the trend from 2024. While these rates are higher compared to the historically low levels of 2020 and 2021, they reflect a more stabilized lending environment. Here’s what this means for buyers and sellers:

For Buyers:

Higher rates might feel daunting, but acting now ensures you can lock in a rate and avoid potential increases. Plus, if rates decrease in the future, refinancing is always an option.

For Sellers:

These stable rates keep buyers in the market, as many are eager to secure homes before further increases or to settle into an area with long-term potential.

Understanding how these rates impact affordability and strategy is crucial, and I’m here to guide you through your options to ensure you feel confident in your decisions.

Utah’s Thriving Economy: A Pillar of Housing Demand

Utah continues to rank as one of the fastest-growing states, driven by its business-friendly environment, strong job market, and high quality of life.

Here’s what’s fueling the economic momentum and how it impacts the housing market:

The 2034 Winter Olympics: A Game-Changer for Salt Lake City

  • Salt Lake City’s successful bid to host the 2034 Winter Olympics is a transformative event with long-term implications for the region’s economy and housing market.
  • The excitement surrounding the Olympics is more than just hype—it’s a signal of sustained growth and opportunity in Salt Lake City’s housing market.

Booming Business Presence:

  • Tech, healthcare, and manufacturing industries are expanding in Utah, attracting a skilled workforce.
  • Companies like Adobe, Amazon, and others have chosen Utah as a hub, bringing thousands of jobs and stimulating the housing market.

Population Growth:

  • Utah’s population continues to grow as people relocate from higher-cost states like California and New York.
  • The state’s relative affordability, combined with its outdoor lifestyle and strong public services, make it a desirable destination.

Infrastructure and Development:

  • Large-scale residential and commercial developments are reshaping cities like Salt Lake City and its suburbs.
  • New housing projects and modern infrastructure improvements provide opportunities for buyers seeking move-in-ready homes or investment properties.

Opportunities for Buyers

Increased Inventory: The rise in days on market and slight decrease in median listing prices suggest a shift towards a more balanced market, providing buyers with more options and potentially more negotiating power.

Acting Sooner than Later: The combination of strong economic fundamentals and new development offers excellent opportunities to find homes that align with your needs and budget. Acting now lets you secure a property before prices potentially climb as the Olympics draw nearer.

Advantages for Sellers

Steady Demand: The SLC market remains active and balanced. Utah’s strong economy, population growth and global exposure will only continue to drive demand for housing.

Strategic Pricing: With the market stabilizing, setting a competitive price is crucial. Properly priced homes are still selling, and are able to sell faster than the increased average that we’re seeing overall.

The Salt Lake City real estate market in 2025 presents a dynamic environment influenced by stable mortgage rates, a strong local economy, and external factors.

Both buyers and sellers can find opportunities by staying informed and adapting to these trends.

As your local real estate expert, I’m here to guide you through these changes and help you achieve your real estate goals.