Salt Lake County Real Estate Market Update: January 2025 & Future Trends

The Salt Lake County housing market continues to evolve, shaped by economic growth, shifting supply and demand, and long-term population expansion. As we enter 2025, new data suggests we remain in a seller’s market, but signs of balance are beginning to emerge. With interest rates expected to stay in the high 6% range and Salt Lake City experiencing a population surge, the real estate landscape is shifting in ways that both buyers and sellers need to understand.

Let’s take a deep dive into what’s happening in Salt Lake County’s real estate market, what’s ahead for 2025, and how you can position yourself for success in this ever-changing market.

Salt Lake County Housing Market Overview – January 2025

1?? More Homes Hitting the Market

One of the biggest takeaways from January 2025 is the increase in new homes listed for sale. There were 1,232 new homes listed, compared to 1,071 in January 2024, marking a 15% increase in inventory. This is great news for buyers, as more options are becoming available.

However, while more homes are being listed, demand remains strong, keeping prices elevated and competition steady.

2?? Closed Sales Are Down

Despite the increase in listings, closed sales dropped by 14.2% year-over-year. In January 2025, there were 635 closed sales, compared to 740 in January 2024.

This drop suggests that buyers are becoming more cautious, likely due to higher mortgage rates and affordability concerns. However, fewer closed sales don’t necessarily mean a cooling market—rather, they indicate a market adjusting to new conditions.

3?? Home Prices Continue to Rise

The median home price in Salt Lake County is now $525,000, up from $501,200 in January 2024, reflecting a 4.8% increase. This is a positive sign for homeowners looking to build equity and sell at a strong price.

While rising home prices indicate a healthy market, it’s important to note that the rate of appreciation has slowed compared to previous years. This is a sign that the market is stabilizing rather than experiencing unchecked growth.

4?? Homes Are Taking Slightly Longer to Sell

The average days on market (DOM) rose to 59 days, up from 56 days in January 2024—a 5.4% increase.

While this is a small change, it signals that buyers have a bit more breathing room compared to the highly competitive, fast-moving market of the past few years. Sellers may need to adjust expectations when it comes to timing, but well-priced, move-in-ready homes are still selling quickly.

Salt Lake County: A Growing Market with Big Future Potential

One of the most important factors shaping Salt Lake County’s real estate market is population growth. Salt Lake City has become one of the fastest-growing cities in the U.S., attracting new residents due to job opportunities, quality of life, and major infrastructure investments.

The Factors Driving Growth:

1?? The 2034 Winter Olympics

Salt Lake City has been officially selected to host the 2034 Winter Olympics, and history tells us that this will have a major impact on real estate values.

When Salt Lake hosted the 2002 Olympics, the event spurred massive economic growth, infrastructure projects, and increased demand for housing. The same pattern is expected leading up to 2034, making Salt Lake County an increasingly attractive market for investors and homeowners.

2?? Ryan Smith & The Expansion of Major League Sports

Utah Jazz owner Ryan Smith is reshaping the sports and entertainment landscape in Salt Lake City. With Smith Entertainment Group's push to bring NHL hockey to Utah and the expansion of professional sports facilities, Salt Lake is cementing itself as a major league sports hub.

These developments boost the local economy, create jobs, and increase demand for housing, particularly in areas near new arenas and entertainment districts.

3?? Residential Housing Boom

New construction is booming across Salt Lake County, with multiple master-planned communities, high-rise apartments, and suburban expansions under development.

However, despite this growth, housing supply is still struggling to keep up with demand, meaning home values are likely to continue rising in the coming years.

4?? Salt Lake’s Appeal for Businesses & Job Growth

Salt Lake has become a top destination for tech companies, startups, and corporate relocations. As more companies set up headquarters or expand operations in Utah, job creation fuels continued demand for housing.

More jobs = More people moving in = Increased housing demand.

What About Interest Rates? What to Expect in 2025

One of the biggest questions for homebuyers and sellers right now is mortgage rates.

• Where are we now? Mortgage rates are currently hovering around 6.75% to 7%, a major increase from the record-low rates of 2021-2022.
• What’s expected? The Federal Reserve has indicated that while interest rate cuts could happen in 2025, they are likely to be minimal. Most experts predict rates will remain in the high 6% range throughout the year.
• What does this mean? Higher rates impact affordability, making it crucial for buyers to shop around for the best loan options and for sellers to price homes competitively.

?? Tip for Buyers: If you’re thinking about buying, don’t wait for rates to drop significantly—focus on finding the right home at the right price. You can always refinance later if rates improve.

?? Tip for Sellers: With higher rates limiting buyer affordability, working with an experienced agent to price your home correctly is key to selling quickly.

What This Means for Buyers & Sellers

For Sellers:

• It’s still a strong market, and demand remains high.
• Pricing competitively is key—homes that are priced too high are sitting longer.
• More new listings mean more competition, so staging and marketing your home well is essential.

For Buyers:

• More inventory = more choices!
• Interest rates are still high, so shop for the best financing options.
• Now is the time to buy before home prices rise even further due to Salt Lake’s continued growth.

Final Thoughts: The Salt Lake County Market is Strong, But Changing

Salt Lake County remains one of the hottest housing markets in the country, and all signs point to continued demand and growth. While we are still in a seller’s market, we are slowly transitioning toward a more balanced market, which could benefit both buyers and sellers in different ways.

If you’re thinking about buying or selling, the key is to stay informed and act strategically. Whether you're looking to list your home, invest in real estate, or simply explore your options, I’m here to help!

?? Message me today for a personalized market analysis and expert real estate advice. Let’s make your real estate goals happen in 2025!