Artist: Holli Yoho
As Expected in 2024
At this time last year, we predicted that 2024 would bring stabilization to interest rates, with 6% being the norm by the end of the year. Despite conjecture about changes in rates from the media, our prediction was spot on. Rates hovered between 6% and 7% throughout 2024, ending the year closer to 7%.
The Utah real estate market closed 2024 with the lowest number of home sales in 29 years, with many people biding their time until rates go down. The current average number of days that homes are listed before going under contract (Days On Market – DOM) in Utah is 41, up from the average of 34 DOM in 2023. As a result, you may have noticed more “For Sale” signs around town. Home prices have still risen by 3.5% on average, showing that steady home appreciation continues across the state.
Steady as She Goes for 2025
Current economic factors indicate that rates will likely remain between 6.25% and 7% throughout 2025, continuing the trend from 2024. With the stabilization of rates and home price appreciation, we’re hopeful that more people will be ready to move forward with their homeownership goals in 2025.
Salt Lake City will be in line with this national trend; we expect the market to stay relatively stable, with modest home price appreciation of 2 – 4% in 2025. Inventory levels remain low but have increased by about 16% compared to 2024, offering some relief to buyers. However, many buyers and sellers are still hesitant, entering the market only when necessary. With around 70% of homeowners in the U.S. locking in rates below 4%, market activity remains subdued.
Looking at the broader economy, there are signs of slightly stronger growth, lower unemployment, and higher-than-expected inflation. The Federal Reserve now forecasts just two rate cuts in 2025, down from the four it previously expected. Unemployment is predicted to peak at 4.3%, just above the current 4.2%, which could lead to further rate cuts if the labor market softens.
Despite these challenges, there are still plenty of opportunities for those who are ready. The market remains stable, with possibilities for creative, buyer-friendly contracts. Sellers should be prepared for longer transaction timelines, but overall, the real estate environment is still viable for those who are ready to make informed, strategic decisions.
Niche Homes provides real estate expertise for all types of transactions and homes.
We Know the Ropes
Our brokerage handled 60 real estate transactions during 2024–including a variety of property types which spanned the state of Utah. It’s an honor to help clients reach their goals in this ever-changing market. Niche Homes is prepared to handle 2025 with wisdom and grit, determined to excel for our buyers and sellers. If you have specific questions about your options and how to proceed, please reach out to us.
Niche Homes is a full-service real estate agency specializing in Wasatch Front neighborhoods and enclaves. Contact us if you are interested in buying or selling a home.
