Pearson & Associates Real Estate Team
t801-477-6773
Print this Page

The real estate market is constantly evolving, and 2025 is shaping up to be a year of opportunity for both buyers and sellers. Here’s what you need to know about home prices, affordability, and what to expect moving forward.

Home Prices Remain Steady

  • The Salt Lake area remains a strong housing market, ranking among the most sought-after places to live.
     
  • The Salt Lake-Tooele Metropolitan Area ranks among the top housing markets in the country, with only 27 out of 227 metro areas having higher prices. This reflects Utah’s strong economy and high demand for housing. Other metro areas, including St. George, Provo-Orem, and Ogden-Clearfield, also rank among the most sought-after markets, making real estate in the state a valuable investment.
     
  • Home prices have stabilized after a record-breaking 40% surge from 2020 to 2022.
     
  • In the last two years, price changes have been minimal:
    • Single-family homes: $610,000, up just 1% from 2022.
    • Condos/townhomes: $425,500, down 1% from 2022.
       
  • A balanced market creates great opportunities for both buyers and sellers. Sellers can list at competitive prices, while buyers benefit from a pause in rapid price increases.

Affordability & Market Shifts

  • While affordability remains a challenge, there are still great opportunities in the market.
     
  • 1 in 4 single-family homes sold for under $500,000 in 2024.
     
  • 40% of condos sold for under $400,000, making them an increasingly popular choice.
     
  • Condo sales are rising, now making up nearly 1 in 3 home sales in Salt Lake County.

Buyers: Looking for an affordable home? Consider condos and townhomes, which offer lower prices and often require smaller down payments.
Sellers: If you’re thinking of selling, the demand for affordable homes is high—especially in the condo/townhome market.
 

2025 HOUSING MARKET PREDICTIONS

Home Prices: Expected to rise modestly

  • Single-family homes: +2% to $620,000
  • Condos/townhomes: +6% to $450,000

Home Sales: Projected to increase slightly

  • Single-family sales up 3%
  • Condo sales up 8%

Mortgage Rates: Expected to stay between 6% and 7%, creating a more predictable market for buyers and sellers.

Why This is Good News for Buyers & Sellers

  • For Buyers: Stabilized prices and more inventory mean you have more options. The market isn’t as competitive as in 2020-2022, allowing for better deals and more negotiating power.
     
  • For Sellers: Demand is still strong, and home values continue to rise steadily, making it a great time to sell without the fear of a market downturn.

The market is shifting in a positive direction, bringing more stability, steady growth, and new opportunities for both buyers and sellers. With home prices leveling out and mortgage rates becoming more predictable, buyers have a better chance to find the right home, while sellers can still take advantage of strong demand and appreciating home values.