Current Salt Lake City Housing Market Trends and 2026 Forecast

Right now, the Salt Lake City housing market is showing signs of a balanced shift, with home prices seeing a modest increase and housing inventory also growing. We're seeing a bit of a slowdown in home sales compared to last year, but overall, it's shaping up to be a more stable market in 2025 than the frenzied pace we've seen recently.

Let's dive deep into the latest numbers to get a clear picture of where the Salt Lake City housing market stands right now and where it might be headed in the near future, especially looking into 2026. Spoiler alert: it's not all doom and gloom, but it's definitely not the wild west of a few years ago either.

Salt Lake City Housing Market Trends: A Look at the Current Picture

It’s always smart to start by looking at what the numbers are telling us right now. The Salt Lake Board of Realtors recently put out their August 2025 report, and there are some interesting things to unpack.

Home Sales and Listings: A Bit of a Slowdown

One of the first things that jumps out is the decrease in both new listings and closed sales.

• New Listings: In August 2025, we saw a -8.7% decrease in new listings compared to August 2024. This means there are fewer homes hitting the market.
• Closed Sales: Similarly, closed sales are down -4.1% year-over-year. This suggests fewer transactions are happening.

Now, this might sound a bit concerning, but it’s not necessarily a bad thing. It often means the market is cooling off from being overheated. When fewer homes are available, but demand is still there, it can create a more stable environment.

Home Prices: Still Climbing, But More Gently

Despite the dip in sales volume, the median sales price for homes in Salt Lake County actually went up by +4.7% in August 2025 compared to last year. It’s now sitting at $555,000. The average sales price also saw an increase of +5.8%, reaching $641,805.

This tells me that while things might be moving a little slower, homes are still holding their value and even appreciating. It's not the rapid surge we witnessed a couple of years ago, which is actually a healthier sign for long-term stability.

Here’s a quick breakdown from the Salt Lake Board of Realtors for August 2025:

Key Metric	August 2024	August 2025	Percent Change
New Listings	1,548	1,413	-8.7%
Closed Sales	1,137	1,090	-4.1%
Median Sales Price*	$530,000	$555,000	+4.7%
Average Sales Price*	$606,373	$641,805	+5.8%
Days on Market Until Sale	42	58	+38.1%
Inventory of Homes for Sale	3,046	3,620	+18.8%
Months Supply of Inventory	3.0	3.6	+20.0%

Source: Salt Lake Board of Realtors, August 2025 Report

Inventory and Days on Market: A Welcome Change for Buyers?

This is a really interesting shift. The inventory of homes for sale has increased by a significant 18.8% in August 2025 compared to last year. This means more options are becoming available for buyers. Correspondingly, the months supply of inventory has also gone up by 20.0% to 3.6 months.

What does this mean in plain English? We’re moving away from a super tight seller’s market and inching closer to a more balanced situation. For buyers, this is good news. You might have a little more breathing room to make decisions, and the frantic bidding wars might not be as common.

However, we are seeing an increase in the days on market until sale, which has jumped by 38.1% to 58 days. This tells us that homes are taking longer to sell. It’s not a bad thing; it just means the urgency has decreased. Buyers have more time to consider their options, and sellers need to be a bit more patient.

Salt Lake Housing Market Forecast: What to Expect in 2025 and 2026

So, where are things headed? Looking at forecasts from sources like Zillow and the National Association of Realtors (NAR) can give us a good idea. Based on the current trends and these expert predictions, here’s what I’m seeing for the Salt Lake City housing market in the coming months and years.

Salt Lake City MSA Forecast: Steady Growth Ahead

Zillow’s forecast for the Salt Lake City Metropolitan Statistical Area (MSA) suggests a period of steady, albeit modest, appreciation.

• October 2025: A projected home value change of +0.4%.
• December 2025: A slight dip in growth to +0.3%.
• 1-Year Forecast (September 2025 – September 2026): A more significant, but still moderate, growth of +1.6%.

This is a far cry from the double-digit growth we saw a few years back. It indicates a much more sustainable pace. The average home value in the Salt Lake City MSA is currently around $556,102, and it’s seeing about a 2.1% increase over the past year. Homes are pending in around 27 days, which is actually quite fast and suggests that desirable properties still move quickly.

Comparing Salt Lake City to Other Utah Regions

It’s always helpful to see how Salt Lake City stacks up against other areas in Utah. Based on Zillow’s MSA forecast:

RegionName	Forecasted Change (Oct 2025)	Forecasted Change (Dec 2025)	Forecasted 1-Year Change (Sep 2025 – Sep 2026)
Salt Lake City, UT	0.4%	0.3%	1.6%
Ogden, UT	0.5%	0.7%	2.5%
Provo, UT	0.4%	0.5%	1.7%
St. George, UT	0%	-0.3%	1.4%
Logan, UT	0.5%	0.8%	2.6%
Heber, UT	0.2%	0.3%	3.4%
Cedar City, UT	0.1%	0.3%	2.5%
Vernal, UT	0.5%	1.2%	4.3%
Price, UT	0.3%	0.9%	5.4%

Source: Zillow MSA Forecast Data

Looking at this table, Salt Lake City’s projected growth is pretty much in line with Provo, but slightly lower than areas like Ogden, Logan, and especially the more rural or smaller towns experiencing higher percentage growth, like Vernal and Price. This often happens when areas with lower price points have more room for percentage increases. Heber is also showing some strong projected growth. St. George is actually forecasted to see a slight dip in December, which is worth noting.

The National Picture: What Experts Are Saying

To get a broader context, let’s look at the national forecasts from Zillow and NAR Chief Economist Lawrence Yun.

Key Predictions from Zillow:

• Home Value Growth: After a flat period in late 2025, home values are expected to start growing again, reaching nearly 1.9% by August 2026. This confirms the idea of a gradual recovery.
• Home Sales: The year is projected to end with 4.07 million home sales, which is a little better than 2024.
• Rents: Rent growth is expected to continue cooling down throughout 2025.

Key Predictions from NAR Chief Economist Lawrence Yun:

Lawrence Yun is painting an optimistic picture for the U.S. housing market, and I think some of this sentiment will trickle down to Salt Lake City.

• Existing Home Sales: He expects a 6% rise in 2025 and an 11% acceleration in 2026. This is a significant jump, suggesting more people will be buying and selling.
• New Home Sales: A healthy 10% increase in 2025 and another 5% in 2026 is predicted. This is great news for addressing the shortage of homes.
• Median Home Prices: Prices are forecasted to increase modestly, with a 3% rise in 2025 and 4% in 2026. This is a sustainable pace, which is what we want to see.
• Mortgage Rates: This is a big one! Yun anticipates 6.4% on average for the second half of 2025, dipping to 6.1% in 2026. He calls mortgage rates a “magic bullet,” and I agree. When rates are lower, more buyers can afford homes, and that boosts the market.

So, Will Home Prices Drop in Salt Lake City? Can It Crash?

Based on all the data and forecasts, a major crash in Salt Lake City home prices doesn't seem likely in the immediate future, especially looking into 2025. The current trends show modest price appreciation, and the national forecasts are leaning towards continued, albeit slower, growth.

The increase in housing inventory is helping to balance the market, preventing the kind of price drops we might see if demand suddenly vanished. Mortgage rates are expected to stabilize and even decrease slightly, which will help affordability.

While a market crash is generally an extreme event driven by severe economic downturns or sudden market collapses, we're seeing more of a gradual normalization. Instead of a crash, think of it as a return to a more sensible, sustainable market.

Possible Forecast for Late 2026 and Early 2027

Extrapolating from the current trends and forecasts, here’s what I’m thinking for the end of 2026 and early 2027:

• Home Prices: We can expect continued steady appreciation. If mortgage rates remain favorable and the economy stays relatively strong, we might see growth in the 3-5% range annually. This aligns with the NAR’s national forecast.
• Home Sales: With improving affordability due to potentially lower mortgage rates and increasing inventory, we could see a significant uptick in home sales volume. Transaction numbers should be notably higher than what we’re seeing now.
• Housing Inventory: While inventory has increased, it might not stay at these higher levels indefinitely if demand picks up significantly. However, it's unlikely to return to the critically low levels of the past few years, especially with ongoing new construction.
• Buyer's or Seller's Market: It will likely be a more balanced market, leaning slightly towards a buyer's advantage if inventory remains robust and mortgage rates stay competitive. However, in popular neighborhoods or for well-priced, updated homes, sellers will still be in a strong position.

Ultimately, the Salt Lake City housing market is evolving. We're seeing a shift from a red-hot seller's market to a more balanced one. For buyers, this means more opportunities and less pressure. For sellers, it means being strategic and realistic about pricing and market conditions.