Sandy, UT — The Salt Lake Board of Realtors® recently hosted its annual Economic Forecast event, featuring insights from leading experts, including James Wood, Ivory-Boyer Senior Fellow at The Kem C. Gardner Policy Institute, and Lawrence Yun, Chief Economist of the National Association of Realtors®.
Wood highlighted that the overheated asset markets of 2020–2022 contributed to today’s high inflation, rising home prices, and elevated mortgage rates. As a result, home price growth has moderated, with the Salt Lake Metro area ranking 28th out of 227 U.S. metros for the highest home prices.
“We are now in a hangover period from those anomalous years,” Wood said. “In 2021 alone, Salt Lake County home prices jumped $108,000—a 25% increase.”
Looking ahead, Wood projected that demographic and economic growth will slow in 2025, while the decline in housing affordability—driven by the excesses of the 2020–2022 market—will continue to challenge home sales. Despite these headwinds, condominium sales in Salt Lake County are expected to rise by 8% this year, while single-family home sales are forecasted to increase by 3%.
The median sales price of a single-family home in Salt Lake County is projected to reach $620,000, a 2% increase, while the median price of a condominium is expected to rise by 6% to $450,000. The combined price increase for homes and condominiums is anticipated to be 3.3%.
Yun noted that nationwide home sales have struggled over the past two years due to mortgage rates remaining just below 7%. However, homebuilders—who account for about 10% of all sales—have rebounded to pre-pandemic levels. Nationally, monthly home sales began showing increases in October of last year, with year-over-year growth continuing in November, December, and January.
“Even at a higher interest rate, we are seeing a bit more activity because inventory levels have started to recover,” Yun said. “If we can find a way to contain the national debt, mortgage rates could potentially dip below 6%.”
Nationwide, Yun predicted existing home sales will rise by 9% this year, with Utah expected to outperform the national average. “The conditions for more home sales are clearly developing,” he said. “I anticipate mortgage rates will range from 6.5% to 6% after we pass through the spring homebuying season.”
About the Salt Lake Board of Realtors®
The Salt Lake Board of Realtors® is the Wasatch Front’s voice of real estate and the No. 1 source for housing market information. The Salt Lake Board of Realtors® is the largest shareholder of UtahRealEstate.com, one of the leading Multiple Listing Services (MLS) in the United States. Since 1917, the Salt Lake Board of Realtors® has been a leader in promoting homeownership and protecting private property rights. The Salt Lake Board of Realtors® empowers its members to better serve the public by providing continuing education, advocacy, and a professional code of ethics.
About UtahRealEstate.com
Founded in 1994, UtahRealEstate.com is the leading provider of real estate technology in Utah and one of the largest multiple listing services in the United States. The company provides one of the top-ranked real estate websites in the country, serving more than 8 million consumers each year. It also provides multiple listing services to approximately 20,000 real estate professionals, accounting for nearly 97% of all Realtors® in the state of Utah.