The current Utah housing market is very different from what we’ve experienced the past several years. On first glance, it’s easy to feel like we’re in a deep buyer’s market, when in reality, it only feels like that because we just got out of the strongest seller’s market we’ve ever experienced. When you look at the data, we’re much closer to a more balanced market where sellers are able to sell their home for a great price, while buyers have more negotiating power. I’ll explain more below.

Table of Contents

• The Pandemic Boom vs. Today's Market

• Current Inventory Trends

• What's Driving These Changes?

• Market Balance Shifting

• Looking Ahead

The Pandemic Boom vs. Today's Market

The housing market has undergone significant changes since the pandemic housing boom. During that period (2020-2022), we saw unprecedented demand surge amid ultra-low interest rates, stimulus payments, and the remote work revolution. This created what economists called "work from home arbitrage" - high earners keeping big-city salaries while purchasing homes in more affordable areas.

Federal Reserve researchers estimated that new construction would have needed to increase by roughly 300% to absorb that pandemic-era surge in demand. Since housing supply couldn't ramp up quickly enough, U.S. home prices rose a staggering 43.2% between March 2020 and June 2022.

Current Inventory Trends

Today's picture looks quite different. As of April 2025, Utah is among seven states (along with Arizona, Colorado, Florida, Idaho, Tennessee, and Texas) that have surpassed pre-pandemic inventory levels. This represents a significant shift from April 2022, when almost the entire country had inventory levels at least 50% below pre-pandemic figures.

As of April 2025, Utah's housing inventory sat at 11,932 homes, continuing an upward trend. This is part of a national pattern - we're currently in an 18-month streak of year-over-year increases in active listings across the country.

What's Driving These Changes?

Several factors are contributing to this inventory growth:

1. Mortgage Rate Impact: When rates spiked in 2022, affordability challenges reflected the reality of sharp home price increases during the pandemic boom. This caused demand to pull back significantly.

2. Return-to-Office Trends: As remote work policies evolved and some companies required more in-office presence, the "work from anywhere" movement that fueled pandemic boomtowns began to slow.

3. New Construction: Utah has seen substantial new home development, with builders often offering price reductions or affordability incentives to maintain sales volume.

Market Balance Shifting

Where inventory has risen the most, homebuyers have gained the most leverage. Markets where inventory has returned to pre-pandemic levels (like Utah) have generally experienced weaker home price growth over the past year compared to areas where inventory remains tight.

In Utah specifically, we're seeing:

• Average days on market: 60 days

• Average list price: $686,208

• Average sold price: $652,861

• Median sold price: $510,000

• Current mortgage rates: 6.92% for a 30-year fixed conventional loan (changes daily)

Looking Ahead

For Utah homeowners and buyers, this means we're in a more balanced market than we've seen in years. Buyers have more options and negotiating power, while sellers need to be more strategic with pricing and presentation to still sell their home for a great price.

If you're considering making a move in this evolving market, I'd be happy to discuss your specific situation and how these trends might impact your real estate goals.

Here to serve,

P.S. If you’re looking to make a move anytime soon, don’t hesitate to respond to this email or call me directly. Happy to answer any questions and help in any way I can.