 The 2024 Utah real estate market ended up strong despite the high interest rates, hovering around 7% for a conventional 30-year loan. Home prices in Utah county were up 5% with the average sold price at $603,914 and average days on market (DOM) of 60 days. Salt Lake county prices were up 7% with the average sold price at $643,859 with a 60 day average on the market.  Many individuals have been wondering how the high inflation rates and new presidency will impact mortgage rates and the real estate market in 2025. Nothing weighs as heavily as mortgage rates. If they remain relatively high, households will sell mainly due to job changes, death, divorce, or health reasons. However, if mortgage rates fall faster, then pent-up demand from buyers “sitting on the sidelines” could be unleashed and prices will rise to historic highs. Buyers are becoming more accustomed to the high interest rates. Those with sufficient down payments or considerable equity in their current homes, may jump back into the housing market. “As of the second quarter of 2024, although nearly 86% of homeowners with mortgages had interest rates below 6%, that share is down from nearly 93% two years ago and continues to decline as sellers are forced to list their homes for a variety of reasons such as job changes, the need for more space as well as the three Ds: death, divorce and debt”. -Us world report There will always be people who choose to stay in their homes and remodel them to keep their super-low interest rates. But, when people have a personal need to sell, the interest rates will not keep them from doing so. Here are what some of top real estate firms predict for the USA in 2025: Redfin expects a 4% rise in the median home sale price. The Fannie Mae/Pulsenomics forecast calls for a 3.8% gain. Zillow forecasts 2.6% home value growth in 2025. And this is what a some firms predict interest rates will be in 2025:  The overall feeling is that it will be a balanced market between buyers and sellers in Utah. Home prices will most likely rise as they did in 2024. Rates will slowly come down and a good rule of thumb is to refinance every .5% drop in rates, because that saves several hundred dollars on the mortgage payments. Our team would love to answer any questions you have about the market. And, if you plan to buy or sell in 2025, we would love to work with you. Ashley, Elizabeth, Debbie and Brooke.  Follow us on Facebook and Instagram for travel tips, new listings, and home design inspiration. Our Current Listings  Learn More  Learn More  Learn More  Learn More Follow us on Facebook and Instagram for travel tips, new listings, and home design inspiration. |
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