As we move through February 2025, Utah’s real estate market continues to evolve with shifting home prices, changing inventory levels, and new buyer trends shaping the landscape. Whether you're a homebuyer, seller, or investor, staying informed on market conditions is crucial for making smart real estate decisions.
In this update, we break down:
📉 Median home prices and how they compare to previous months
🏡 Inventory and supply trends affecting buyers and sellers
📊 Key real estate insights to help you plan your next move
Let’s dive into the latest February 2025 market stats for Utah and Salt Lake City!
Utah’s Real Estate Market at a Glance (February 2025)
🏠 Median Home Price: $641,819 (+11.5% YoY, -4.39% MoM)
📈 New Listings: 2,137 (Decrease from 3,059 in December 2024)
⏳ Days on Market (DOM): 70 Days
🏡 Active Listings: 9,557 (Higher than previous months, reflecting slower buyer activity)
📊 Mortgage Rates: 6.5% (30-year fixed), 6.125% (15-year fixed)
Please note: The stats are through January 2025
1. Home Prices: Are They Rising or Falling?
The median home price in February 2025 is $641,819, marking a 4.39% decrease from January 2025, but still reflecting an 11.5% increase year-over-year.
What’s Driving This Trend?
- Buyers are becoming more price-conscious as mortgage rates remain elevated (6.5%), reducing affordability.
- More active listings are available, increasing options for buyers and reducing competition.
- Some high-demand areas (like Sugar House and Draper) continue to appreciate, while others (like Lehi) are experiencing slight price dips.
💡 Expert Insight: Sellers should price competitively to attract serious buyers, as buyers are taking longer to make purchasing decisions.
2. Housing Inventory: Is There Enough Supply for Buyers?
📍 Total Active Listings: 9,557 (higher than previous months, reflecting growing inventory)
📍 New Listings: 2,137 (compared to 3,059 in December 2024, meaning fewer homes entered the market in January)
📍 Days on Market: 70 Days (Homes are sitting longer compared to peak seller’s market conditions)
📍 Months of Inventory: (Data not available, but with increasing listings and longer DOM, inventory is growing)
What Does This Mean?
✔️ Buyers have more choices than they did last year, easing the competition.
✔️ If inventory continues rising, Salt Lake City’s market may shift toward balance rather than favoring sellers.
✔️ Sellers should focus on curb appeal, staging, and competitive pricing to avoid extended listing times
3. Mortgage Rates & Buyer Activity
📌 Current Mortgage Rates (February 2025):
✔️ 30-Year Fixed: 6.5%
✔️ 15-Year Fixed: 6.125%
📌 Rate Trends:
- Rates were 6.875% in February 2024, slightly dropping since then.
- January 2025 started with rates at 6.625%, showing a small decrease month-over-month.
📌 How It’s Affecting Buyers:
✔️ Higher mortgage rates are slowing down buyer activity, with some waiting for further rate drops.
✔️ Most buyers are sticking with 30-year fixed-rate mortgages—ARM loans aren’t offering lower rates, so adjustable-rate products remain less attractive.
✔️ Multiple offers are becoming less common, meaning buyers have more negotiation power.
💡 Expert Insight: Buyers who get pre-approved now can lock in today’s rates and refinance later if rates drop. Sellers should prepare for longer negotiation periods.
4. Salt Lake City Market Snapshot
✔️ Sugar House – $657,000 (+15.3% YoY) – Still one of the most in-demand areas in SLC.
✔️ Downtown SLC – $524,031 (+3.8% YoY) – Strong appreciation due to urban appeal.
✔️ Draper – $845,000 (+4.45% YoY) – Continues to grow with luxury developments.
✔️ Lehi – $530,000 (-2.75% YoY) – Experiencing slight price adjustments.
📌 What’s Selling Fastest?
✔️ Affordable starter homes and move-in-ready updated homes are selling the quickest.
✔️ Luxury homes and high-end properties are taking longer to sell due to price sensitivity.
What’s Next? Market Predictions for Spring 2025
🔮 Inventory will likely continue rising as more sellers list their homes in the spring.
🔮 Mortgage rates may stabilize near 6.5%, keeping some buyers on the sidelines but encouraging long-term investors.
🔮 More balanced conditions ahead – If supply keeps rising, we may see less competition for buyers and more negotiation flexibility for sellers.
💡 Expert Advice:
✔️ Sellers: If you plan to sell, price your home competitively before spring inventory floods the market.
✔️ Buyers: Spring could bring more choices, but also more competition—consider acting now before demand picks up again.
Is Now the Right Time to Buy or Sell?
✔️ If you’re buying: More inventory means more choices and negotiating power. If you find a great home, consider locking in a rate now and refinancing later if rates drop.
✔️ If you’re selling: Prepare for a longer selling timeline unless you price aggressively and market strategically.
Thinking about buying or selling in Salt Lake City? Let’s talk about your options.
📞 Book a Call today for a free home value analysis or personalized buying strategy!
