Utah Housing Update - 10/13/2025 - Episode 155

Описание: Here's where things are in the Utah housing market as of 10/13/2025:

-Current Inventory = 13,697: up from last week and actually this hits a new high for inventory this year - we do expect it seasonally to peak this month and then begin to decline through winter.
-Prior Week Average DOM = 73: significant jump up from last week, trending moderately up. I don’t anticipate it to run away at this trajectory, I anticipate more of what the current trend line looks like into the winter.
-Prior Week Average List$ = $760,703: up from last week, trending up. If average list prices keep their current pattern it will drop again either next week or the following week, then start to creep up again.
-Prior Week Average Sold$ = $743,809: also up from previous week, but the difference between List$ and Sold$ remains within the same margin…
-Prior Week List$ vs Sold$ = -$16,894.
-Prior Week Median Sold$ = $535,000: up from previous week, still over $200K below Average Sold$.
-Prior Week Homes Sold = 547: down a jump from previous week, trending moderately down, which we do expect as winter approaches.
-Currently Under Contract = 4,801: down from previous week, trending down as we expect seasonally.
-Prior Week Price Reductions = 1,489: down from previous week, trending moderately down.
-Prior Week Listings Cx/Ex/Withdrawn = 402: down after last week’s expected first-report-of-the-month spike.
-Interest Rates (30yr Fixed Conventional) = 6.32%: down from last week and continuing a trajectory down.

The pain we feel in Utah’s housing market right now is not that the housing market is wonky or experiencing wild inflation or in any way out of control. The housing market is acting completely normal right now for the time of year, and it is neither a strong seller’s market or buyer’s market.

The pain we feel in Utah’s housing market right now is that the entire housing market exists in a bracket above where most people are making money.

In Salt Lake County, average household income is about $131,500 per year. Median household income is about $94,400 per year.

Let’s take the median - where the majority is - and compare it to median sold price right now: $535,000. Can a household making $94,400/year afford the median price of a home?

A median household income is bringing in about $7,800/month, and housing costs should be no more than 30-35% of income, so we should be looking for a monthly mortgage payment (once you’ve included property taxes, about .65% of home value annually, and home owner’s insurance of about $1,200/yr for a home of this price) of about $2,500/month.

What all that translates to is that the median home price here is barely affordable for a household of median income, if they have about $100,000 to make as a downpayment.

To make it properly affordable, one of 3 things would need to happen:
a downpayment of closer to $150,000,
a mortgage rate closer to 4.5%, or
a home price closer to $450,000.

That’s the pain in our market right now - so what needs to happen?
Housing inventory needs to stay up, and demand needs to stay subdued so that our supply/demand stays loaded more heavily on the supply side - this will allow prices to gradually come down over time relative to how much money demographics are making. What one lever can be pulled to accomplish that? Keep interest rates from dropping too low.
Sell a home in order to buy one (if that’s an option and you have enough equity),
make/save more money,
work on making/saving more money while you wait for interest rates to come down, or
buy less house if you’re in the market to buy a home.

So I wanted to put this out there today; we have a lot of sentiment about how crazy the housing market is, and I wanted to give a little clarity: it’s not crazy because of anything that’s happening right now, all the crazy happened 5 years ago. Right now it’s normal, but it left us behind en masse, and I wanted to acknowledge that I see it, I get it, and I’m experiencing it with you.

Let’s look at the numbers.

Remember that I track interest rates from the following website:

https://www.mortgagenewsdaily.com/

If you have any questions about the information in this video or if you're interested in buying or selling a home in Utah in the coming months, please feel free to reach out to me. You know that I know this market like the back of my hand, and I'd love to be on your team and make sure you always know what’s happening next and what to do. Let’s have a conversation!

I'd love to hear from you,

Christopher

801.834.9713
[email protected]