No video for today unfortunately, but I hope you’re enjoying this bipolar Utah weather! Today, I wanted to update you on Zillow’s recent housing price forecast. Zillow has already revised their forecast multiple times this year. But for the first time in years, they’re expecting a national decline in housing prices, but some areas are expected to get hit harder than others.

Table of Contents

• The National Picture

• Why the Change in Outlook?

• What This Means for Utah

• What This Means for You

  • For Potential Sellers:

  • For Potential Buyers:

• My Take on the Market

• Let's Connect!

The National Picture

In Zillow’s most recent update released on April 17th, Zillow economists have projected that U.S. home prices will fall by -1.7% between March 2025 and March 2026. This marks a significant shift from their previous forecasts:

• January 2025: Projected +2.9% increase

• February 2025: Revised down to +1.1% increase

• March 2025: Further revised to +0.8% increase

• April 2025: Now projecting a -1.7% decrease

This gradual downward revision of forecasts suggests economists are responding to changing market conditions in real-time.

Why the Change in Outlook?

According to Zillow's economists, several factors are contributing to this more conservative forecast:

• Increasing inventory levels: More homes are coming onto the market, giving buyers more options and negotiating power

• Affordability challenges: Many potential buyers are choosing to rent longer as housing costs remain high relative to incomes

• Slower sales activity: Zillow is projecting only 4.1 million existing home sales in 2025, which would be the third consecutive year of suppressed sales compared to pre-pandemic levels

What This Means for Utah

While the national forecast shows a slight decline, Utah's market has its own unique dynamics:

• The typical home price in Utah currently sits at approximately $517,823 (depending on the area), having increased 1.4% over the past year

• Local economists project that housing supply will increase by 11.7% in 2025, potentially easing price pressures

For Salt Lake County specifically, we're seeing a shift toward more affordable housing options, with condominium sales expected to increase by 8% (about 4,000 units) while single-family home sales are projected to rise by 3% (approximately 8,600 units). Utah county is currently close to 10% higher inventory levels than March, 2019. This signals that we’re moving back to a more balanced market with more options for buyers to choose from.

What This Means for You

For Potential Sellers:

If you've been considering selling your home, this forecast suggests that waiting might result in potentially lower returns. The increasing inventory means more competition, which could put downward pressure on prices. Homes are also currently staying on the market slightly longer than last year at this time.

For Potential Buyers:

This shifting market could present opportunities. With more inventory and potentially stabilizing or declining prices, buyers may find themselves with more options and negotiating power than they've had in years. While mortgage rates remain a challenge, the combination of more inventory and potentially softening prices could improve overall affordability.

My Take on the Market

I believe we're entering a more balanced market after several years of extreme conditions. This doesn't mean a housing crash—Utah's strong economy and continued population growth provide a solid foundation for our housing market. Rather, we're seeing a normalization that could benefit both buyers and sellers who approach the market strategically. But of course, anything could happen. I will continue keeping you updated as I see things unfold.

Let's Connect!

Whether you're thinking about buying, selling, or just curious about how these trends might affect your property value, I'm here to help. I'd be happy to provide a personalized market analysis for your specific situation.

If your curious how much your home is currently worth, simply reply to this email saying “value”, and I’ll be sure to reach out and provide a complimentary home value report.

Here to serve,

P.S. Do you know someone who might benefit from this information? Please feel free to forward this newsletter to friends or family who are interested in the Utah housing market!