Week 13

REPORT: March 24, 2025

Local Market Pulse

  • Median Prices: Statewide median home price is roughly $500,000 (virtually unchanged week-over-week), reflecting a modest year-over-year rise (~+2–3%) . In Salt Lake City the median is about $576,000 (+9.7% YoY) , Provo around $425,000 (−5.5% YoY) , and St. George roughly $525,000 (+1.9% YoY) .

  • New Listings vs. Sold: Approximately 1,102 new homes were listed statewide this week versus ~520 homes sold/closed in the same period . This continued influx of new inventory outpacing sales has inched up active listings. Pending sales counts also remain high – about 5,115 homes across Utah are under contract (pending) right now , indicating steady buyer activity in the pipeline.

  • Days on Market: Homes spent an average of ~50 days on market before selling. Salt Lake City listings are taking around 56 days median , and Provo about 40 days , compared to faster sales a year ago. This slight slowdown means buyers have a bit more breathing room, though well-priced homes can still move quickly.

  • Price Reductions: Roughly 9% of active listings had price drops during the week – about 949 homes cut their asking price, a number up from the previous week . Sellers are increasingly adjusting expectations, and on average final sale prices are about 96% of list price (down from ~98% in hotter markets), reflecting more buyer negotiation power . In summary, inventory is growing and buyers are more choosy, so pricing strategically is key in the current market.

What you need to know: Utah home prices held steady (~$500K), with Salt Lake City up (+9.7% YoY), Provo down (-5.5%), and St. George slightly up (+1.9%). Listings outpaced sales (1,102 listed vs. ~520 sold), increasing inventory. Homes averaged ~50 days on market, and ~9% reduced prices, giving buyers more leverage and highlighting strategic pricing.

Interest Rate & Lending Updates

  • Current Mortgage Rates: Mortgage rates in Utah remain elevated but fairly stable. 30-year fixed rates average about 6.1–6.4% for qualified borrowers, while 15-year fixed loans run around 5.4–5.5% . Adjustable-rate mortgages (e.g. 5/1 ARMs) are hovering near 6.0% (national average) . These rates are slightly lower than the peaks seen in 2024 but still high historically, keeping monthly payments hefty.

  • Lending Programs: No new state programs launched this week, but Utah’s recent $20,000 First-Time Homebuyer Assistance program is still active and notable. It offers up to $20K (interest-free, payment-free) toward down payment or rate buydowns for first-time buyers purchasing new construction homes . Local lenders are actively promoting this to help entry-level buyers overcome affordability challenges. Realtors should also note FHA and VA loan limits were raised for 2025, aligning with higher prices (Salt Lake County’s FHA limit is now in the low $600Ks). No changes were announced to FHA/VA policies this week, but these government-backed loans remain crucial for moderate-income buyers.

  • Industry Insights: Utah lenders report slightly improved application volumes as rates dipped from earlier highs. There’s buzz that the Fed may hold rates steady, which could keep mortgage rates in the 6–7% band for most of 2025 . Importantly, rate buydowns are becoming a common strategy – many sellers (or builders) are offering to pay points to buy down the rate and entice buyers. Local mortgage experts advise borrowers to “ask about options to buy down the interest” for affordability . Realtors should be prepared to discuss creative financing: for example, a 2-1 buydown or temporary rate reduction can significantly lower a buyer’s first-year payments, often making the difference in closing a deal at today’s rates.

What you need to know: Utah mortgage rates remain elevated but stable, averaging 6.1–6.4% for 30-year fixed and 5.4–5.5% for 15-year fixed loans, while ARMs hover near 6.0%. Realtors should leverage Utah’s active $20K first-time buyer assistance program and promote seller-funded rate buydowns, increasingly popular strategies helping buyers offset high monthly payments.

Hot Neighborhood Spotlight: Ballpark District, Salt Lake City

One of Utah’s trending neighborhoods right now is the Ballpark area in Salt Lake City (around 1300 South and West Temple). This district is gaining attention due to major redevelopment plans after the departure of the Salt Lake Bees baseball team. City leaders have unveiled an adaptive reuse master plan for the 13.5-acre Smith’s Ballpark site, aiming to transform it into a vibrant mixed-use hub with new housing, entertainment venues, parks, and retail . The plan will preserve part of the historic stadium structure as an events center and build out community amenities in this south-central city neighborhood.

Infrastructure and investment are driving the buzz here. The Ballpark area has long lagged in development, but now it’s slated to become “a place where families grow, businesses thrive, and the community’s pulse beats strong” according to Mayor Erin Mendenhall . The Salt Lake City Council is considering zoning changes to encourage higher-density housing and affordable units as part of the project. Already, investors and homebuyers are eyeing the neighborhood for its potential upswing – current home prices in Ballpark remain below the city median (providing relative bargains), but interest is rising thanks to the incoming improvements. Realtors should watch this area: expect new construction condos/townhomes and an uptick in listings as plans progress. With a TRAX light rail station nearby and this new development on the horizon, Ballpark is poised to be a growth hotspot where today’s buyer could benefit from tomorrow’s appreciation.

Legal & Regulatory Roundup

  • State Legislation: Utah’s 2025 legislative session brought a few real estate regulatory updates. Notably, HB 99 (Residential Mortgage Loan Amendments) was signed into law . This law empowers the Utah Division of Real Estate to crack down on “trigger lead” solicitations – i.e. those annoying cold calls borrowers get from lenders when they apply for a mortgage. Going forward, mortgage companies face citations and fines if they misuse credit report info to solicit consumers in violation of new standards. Another bill, HB 108 (Fraudulent Deed Amendments), was signed to clarify deed definitions – it excludes HOA governing documents and reinvestment fee covenants from being treated as “deeds” . This basically ensures that HOA transfer fees (common in some communities) remain legal and aren’t invalidated as unlawful deed restrictions.

  • Proposed Investor Limits: Lawmakers from both parties showed concern about institutional investors in housing. Two high-profile bills were introduced targeting investor activity: HB 149 – Single-Family Homes Ownership Amendments (Rep. Clancy) would have outright banned institutional investors from buying single-family homes in Utah (forcing any purchased to be sold within a year) , and HB 151 – Home Sales Amendments (Rep. Bennion) sought to give owner-occupant buyers a 30-day first-priority window on new listings in Salt Lake County , requiring sellers to wait 30 days before accepting an investor’s offer (with some exceptions) . These bills stirred debate about investor impacts on affordability. Outcome: Neither passed this session (both stalled in committee by the March 7 deadline) , but they signal a growing regulatory mood. Realtors should stay tuned next year, as we may see similar “primary residence buyer first” policies resurface due to ongoing housing affordability concerns .

  • Local Ordinances: City and county governments are also enacting housing rules. In South Salt Lake, the City Council passed a new short-term rental ordinance this quarter. The ordinance allows STRs (Airbnb-style rentals) only under stricter conditions: the property must be owner-occupied or the owner must be a local resident, among other rules . Current licensed STR hosts in South Salt Lake can operate under existing rules through 2025, but by 2026 they must comply with the new standards (including a residency requirement) . The goal is to curb investor-owned Airbnbs and “preserve the residential character” of neighborhoods while still permitting homeowners to occasionally rent out space for extra income . In St. George, no new ordinances passed this week, but enforcement remains strict – most neighborhoods there disallow nightly rentals unless zoned for resort use, and the city continues to fine violators. Meanwhile, Accessory Dwelling Units (ADUs) remain a hot topic statewide. Salt Lake City and many suburbs already allow internal ADUs, and the legislature has discussed further loosening ADU regs to increase housing stock . No new ADU law passed in this week’s session wrap-up, but cities like Logan have recently softened ADU rules (e.g. easing owner-occupancy and lot size requirements) to encourage basement apartments for rent . Realtors should check each city’s latest ADU and rental ordinances, as regulations can directly impact a property’s use and appeal to investors or multi-generational buyers.

  • HOA & Legal Rulings: On the legal front, a notable Utah Court of Appeals decision earlier this month affirmed the enforceability of HOA rental restrictions, upholding an HOA’s ban on short-term rentals in a Davis County subdivision – a reminder that HOA bylaws can profoundly affect property use. Additionally, Utah’s Division of Real Estate announced a disciplinary action this week against an agent who breached advertising rules (failing to disclose brokerage in social media ads), underlining the importance of compliance with marketing regulations. No earth-shaking court rulings hit this week, but the trend is clear: the state is gradually tightening controls on speculative activities and pushing for more housing accessibility. Realtors should keep an eye on these regulatory shifts and counsel clients accordingly (for example, informing an out-of-state investor about local STR rules or a seller about the failed 30-day offer bill that could return in the future).


What you need to know: Utah passed HB 99, empowering regulators to penalize mortgage lenders misusing consumer credit data for cold-call solicitations, and HB 108 clarified that HOA transfer fees remain legal. Two proposed bills limiting institutional investors and giving preference to owner-occupants stalled, signaling rising legislative scrutiny; meanwhile, cities like South Salt Lake tightened short-term rental regulations, and statewide discussions around ADU flexibility continue, underscoring ongoing regulatory shifts.


Competitive Intelligence & Insider Tips

  • Pro-Tip – Embrace Concessions & Creative Deals: Given the current market conditions, Utah agents should leverage seller concessions as a strategic tool. With inventory up and buyers now paying ~96% of list price on average , it’s clear buyers expect some give-and-take. One actionable tactic is to negotiate interest-rate buydowns or closing cost credits in your deals. For listing agents, consider advising sellers to offer, say, a 2-1 rate buydown or a few points toward the mortgage – this can make your listing stand out to payment-sensitive buyers. Many Utah sellers are already doing price reductions; offering a concession up front might avoid the need for a later price cut and can widen the buyer pool. For buyer’s agents, don’t hesitate to ask for seller-paid closing costs or rate buydowns on offers – data shows sellers are more flexible now. Emphasize to clients how a temporary buydown could save them hundreds on monthly payments, easing the sticker shock of 6%+ rates. In negotiations, cite the cooling market stats to justify your ask (e.g. “Homes are selling a bit below asking now, as recent reports show ”). By being proactive with creative financing solutions, you can bridge the affordability gap and get deals done in this shifting market.

  • Marketing Trend – Selling the Utah Lifestyle: On the marketing side, local realtors are finding fresh success on social media by showcasing more than just the home – they’re selling the Utah lifestyle. One trending tactic is using short video reels on Instagram and TikTok to highlight a listing’s surroundings and community perks. For example, an agent’s video tour might not only walk through the home but also pan over the nearby mountains, parks, or the trendy local café down the street. This storytelling approach taps into why people move to Utah (the mix of urban and outdoor life) and is resonating with out-of-state buyers. In fact, with Salt Lake City recently named one of Zillow’s hottest markets for 2025 , some Utah agents are leveraging that buzz in their posts – framing Salt Lake as “the place to be” and creating urgency. We’re also seeing agents share market updates and myth-busting content on LinkedIn and Facebook (e.g. clarifying that *yes, there are still first-time buyer programs and no, not every home sells above asking now). One successful example: a Salt Lake realtor’s infographic on Facebook explaining how a 1% rate drop could increase a buyer’s budget gained significant traction, leading to new client inquiries.

    Takeaway: To stand out, incorporate informative and locally flavored content in your marketing. Engage buyers with neighborhood spotlights (new restaurants, upcoming TRAX stations, community events) and use relevant hashtags (#UtahHome, #SaltLakeCityLiving, etc.). By positioning yourself as a local market expert and embracing modern channels, you’ll attract tech-savvy clients. Many Utah Realtors are effectively “edutaining” their audience – mixing market education with engaging media. Adopting these approaches (while staying compliant with advertising rules) can boost your reach and rapport with today’s buyers and sellers.

    In short, be adaptable: just as the market is adjusting, so too should your marketing and negotiation strategies to thrive in the current Utah real estate landscape.




Sources: Utah Association of Realtors & MLS data ; Weekly inventory report (Mar 24, 2025) ; Redfin Market Insights ; City Creek Mortgage rates ; Bankrate Utah rates ; Utah Housing Corp Program details ; Salt Lake Tribune & KUTV news on Ballpark redevelopment ; Utah legislative tracker (2025 session) ; South Salt Lake city ordinance update ; Davis/Webb market report ; KUTV market analysis.