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- December Froze Utah's Housing Market...
Heading into 2025, Utah’s housing market experienced its most significant seasonal slowdown in nearly two years, influenced primarily by elevated mortgage rates which has resulted in the following:
Table of Contents
Increased Time on Market
In Utah, homes remained on the market for an average of 65 days in December, marking the slowest December in the past 3 years and the slowest month since February 2024. This duration was 8 days longer than December of last year and 4 days longer than the previous month.
Active Listings Grew
Active listings grew by 18% year-over-year in Utah, continuing the trend of annual growth. However, due to seasonal factors, the total number of homes for sale has declined to its lowest level since May.
Median Sales Price Increases
The median price of Utah homes sold in December was $500,294, a 4% increase compared to last year.
Market Outlook for 2025
Economists anticipate a modest improvement for both buyers and sellers in the housing market for 2025, with projections including:
Home Sales: An expected national increase of approximately 1.5%.
Mortgage Rates: A potential decline, averaging around 6.3% for the year.
Buyer Demand: With potential lower mortgage rates, and the recent fires in California, I would not be surprised if markets like Nevada, Idaho, Utah, and Arizona experience an additional increase in buyer demand as many of these families look to relocate. Similar to what we saw during the pandemic, but on a smaller scale.
Home Affordability: A modest increase in home prices is expected over the next year as buyers come back into the market. Projections are all over the place among real estate professionals and banks, but an average of 16 institutions shows an expected price increase of 3.5%. But even with higher prices, buyer’s could still find more affordable options as newer builds hit the market and rates come down. These factors may enhance affordability and stimulate buyer activity in the coming months.
I will continue to monitor and provide updates on housing market trends as the new year unfolds.
In the meantime, if you have any questions on how this impacts your real estate plans, don't hesitate to call.
Deals of The Week
5.99% mortgage rate PLUS 3% towards closing costs.
If you’re looking to purchase a new home, I had some killer listings reach my desk this morning. For example, you could purchase this condo in Mapleton right now for $323K, PLUS get a 5.99% mortgage rate AND $9,690 of your closing costs completely covered.
Or, you could purchase this single family home in Lehi for $544K with the same 5.99% mortgage rate PLUS $16,320 credit towards your closing costs.
There are plenty more deals to be found from Mapleton all the way up to Riverton. Reach out if you have any questions or simply to have a conversation about what you’re looking for.
If you’re looking to sell within the next year, reach out now and let me know! It’s good to know what your plans are for the year so I can help you be prepared to capture as much buyer demand as possible.
Here to serve,
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