SANDY, Utah — In the first quarter of 2025, single-family home sales in Salt Lake County have decreased by 9.7%, with only 1,618 units sold compared to the previous year. This decline is largely attributed to higher mortgage rates, which are nearing the 7% mark, impacting the housing market along Utah’s Wasatch Front.
Freddie Mac recently reported a rise in the average 30-year fixed-rate mortgage to 6.86%, an increase from the previous week when it stood at 6.81%. A year ago, the average rate was slightly higher at 6.94%.
The trend of declining home sales has been felt across most ZIP codes in Salt Lake County; however, several areas have surprisingly seen an uptick in sales. West Valley City’s ZIP code 84119 reported a impressive 37.0% increase, totaling 63 homes sold. Salt Lake City’s 84105 area also recorded a significant rise of 25.0% with 65 homes sold, while Sandy’s 84092 area noted a solid 15.1% increase, selling 61 homes.
Meanwhile, other counties along the Wasatch Front saw mixed results. Davis County experienced a notable 23.2% decline in sales, whereas Utah County experienced a marginal drop of 1.3%. Tooele County saw a decrease of 8.1%, but Weber County managed to achieve a slight improvement, with sales increasing by 0.2%.
Condominium sales in Salt Lake County also fell, with sales decreasing to 678 units from 712 a year ago. While the market is seeing slower sales overall, home prices continue to rise. The median single-family home price in Salt Lake County reached $585,000 in the first quarter, reflecting a 1.6% increase from $575,000 the previous year.
In terms of affordability, Weber County remains the most affordable region on the Wasatch Front, with a median home price of $469,000. Conversely, Utah County holds the title for the most expensive area, boasting a median price of $590,000.
Salt Lake County also saw substantial increases in condominium prices, now reaching a median price of $431,995, which is a 6.5% rise compared to the prior year. The significant increase in mortgage rates, now approaching 7%, marks a sharp contrast to earlier years when rates were at historically low levels ranging from 2.5% to 5%. This shift has notably affected monthly mortgage payments. In 2024, the median monthly payment for a single-family home along the Wasatch Front was reported at $3,581, while the median rent stood at $2,092, emphasizing the growing affordability challenges for potential buyers.
According to a recent analysis from the Salt Lake Board of Realtors®, the income required to comfortably afford a median-priced single-family home in Salt Lake County has surged to $171,220. Despite these challenges, homeownership remains a strong investment opportunity. A report from the Aspen Institute in 2024 revealed that homeowners have a median net worth of approximately $400,000, substantially higher than the median net worth of renters, which is around $10,400. This stark contrast illustrates the long-term value and financial advantages linked with homeownership.
The Salt Lake Board of Realtors® continues to be an influential voice in real estate on the Wasatch Front and serves as a vital source for housing market information. Established in 1917, the board champions homeownership and advocates for private property rights. With ongoing education, advocacy, and a commitment to ethics, the Salt Lake Board of Realtors® empowers its members to better serve the community.
UtahRealEstate.com, founded in 1994, stands as Utah’s leading provider of real estate technology and is among the largest multiple listing services in the United States. Offering one of the top-ranked real estate websites, it provides vital services to over 20,000 real estate professionals in the state.
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