Utah Housing Market Reality Check: What Needs to Happen for Affordability to Return

Utah Housing Market Reality Check: What Needs to Happen for Affordability to Return

At Utah Home Vibes, we hear from buyers and sellers every day who are wondering when housing affordability will return to pre-pandemic levels. The truth is, for affordability to go back to where it was before the pandemic, one of the following major shifts would need to happen:

A Significant Increase in U.S. Incomes

Household incomes would need to rise substantially to offset the impact of higher home prices and mortgage rates. According to the National Association of Realtors (NAR), median family incomes have seen modest increases, but they haven’t kept pace with rising home prices and mortgage rates. Without a significant and sustained rise in wages, affordability will remain a challenge.

A 28% Decrease in Home Prices

Recent research from Redfin’s economic research team suggests that home prices would need to fall by approximately 28% to bring affordability back to healthy levels (Market Watch). However, in Utah, where demand remains strong and inventory is limited, such a price drop is highly unlikely.

A Drop in Mortgage Rates

Mortgage rates play a critical role in affordability. The NAR highlights that even a reduction in rates from 6.8% to 6.0% would allow a buyer earning $100,000 annually to afford a home priced 6.3% higher (NAR). While rates may decrease slightly in the coming years, experts predict they will remain above 6% through 2025, making a return to ultra-low pandemic-era rates unlikely.

What Does This Mean for Utah Buyers and Sellers?

We’ve talked to many Utah homebuyers who are waiting for mortgage rates or home prices to drop, and sellers who are holding off because they think now isn’t a good time to list. For example, one Utah homeowner recently shared that an agent told them 2025 would be a bad year to sell.

The Reality Check

In Utah’s housing market, well-priced homes are still selling, and buyers who take action now are avoiding the risk of rising prices and increased competition in the future. Waiting could mean missing out on the opportunities that exist in today’s market.

The Moral of the Story

Housing affordability in Utah isn’t going to return to pre-pandemic levels unless something drastic—and highly improbable—happens. So, if you’re waiting for a major shift in the market, you might find yourself priced out instead.

Instead of waiting, focus on what’s possible today. Whether you’re considering buying a home in Utah or selling your current property, the key is to understand the current market and make informed decisions.

At Utah Home Vibes, we specialize in helping buyers and sellers navigate the Utah Real Estate market with confidence. If you’re ready to explore your options, contact us today or visit Utah Home Vibes.

Why Utah is Still a Great Place to Buy and Sell Real Estate

Utah’s economy is growing, and its housing market remains strong. From Ogden to Salt Lake City to Provo, homebuyers are still finding opportunities to build equity, while sellers are benefiting from steady demand.

If you’re thinking about buying or selling in Utah, now is the time to act. Let us help you make your next move.