As of March 2025, Utah’s real estate market continues to exhibit resilience and growth, marked by rising home values, limited inventory, and significant developments that are reshaping the state’s economic landscape.
Steady Appreciation in Home Values
Utah’s housing market has experienced a consistent uptick in home values. The average home value now stands at approximately $517,331, reflecting a 2.3% increase over the past year.
In Salt Lake County, the median home price rose from $525,000 to $537,000 between February 2024 and February 2025, marking a 2.2% increase.
This upward trend underscores the sustained demand for housing in the region.
Inventory Constraints and Market Dynamics
The market continues to grapple with limited housing inventory. As of January 31, 2025, there were 11,761 homes for sale, with 2,568 new listings during that month.
This scarcity has led to heightened competition among buyers, with properties typically going under contract in about 40 days. Despite a 7.0% decrease in the number of homes sold year-over-year in January, home prices saw a 7.9% increase during the same period, further emphasizing the supply-demand imbalance.
Influence of Interest Rates
Elevated interest rates have posed challenges for potential homebuyers, impacting affordability and purchasing power. While specific rates fluctuate, the prevailing high-interest environment has contributed to a more cautious approach among buyers, influencing both demand and pricing strategies.