2025 Salt Lake City & Park City Real Estate Market Predictions

By Connor Trupp | February 2025

Salt Lake & Park City Markets

As we enter 2025, buyers, sellers, and investors in Salt Lake City and Park City are wondering: What’s next for the housing market? While the days of extreme bidding wars may be behind us, the market remains competitive, with home prices still on the rise and mortgage rates shaping buyer activity.

Here’s what you need to know about where the real estate market is heading in 2025—including the latest data and expert insights.

1. Home Prices Will Continue Rising, But at a Slower Pace

Home prices in both Salt Lake City and Park City are expected to increase moderately in 2025. Unlike the rapid appreciation seen in previous years, price growth is projected to slow, but demand remains strong.

• Salt Lake City: Prices are forecasted to rise by 3-5% this year, fueled by a healthy job market and steady population growth.
• Park City: The luxury market is projected to see 5-7% appreciation, driven by high demand for ski homes and resort properties.

“The demand for homes is still outpacing supply, especially in sought-after areas like Sugar House, The Avenues, and Holladay,” says a local real estate expert. “Park City’s high-end market remains a top choice for luxury buyers, keeping prices elevated.”

2. Mortgage Rates Expected to Stay Above 6%

One of the biggest factors influencing the market in 2025 is mortgage rates. While many hoped for a major drop, economists predict rates will remain above 6%, with some projections reaching as high as 7.2%.

• Higher rates mean buyers may be more cautious, particularly in the mid-tier price range ($500K-$800K).
• Luxury home buyers, many of whom pay cash, will be less affected by rising rates.
• If rates fall below 6.25%, expect another wave of buyer activity, increasing competition in popular areas.

3. Inventory Will Stay Tight in Key Neighborhoods

One of the biggest challenges in Salt Lake City and Park City remains low housing inventory, particularly in desirable neighborhoods.

• Salt Lake City: The Avenues, Sugar House, and Holladay continue to have limited listings, keeping competition strong.
• Park City: Despite nearly 1,000 new housing units in development—including the highly anticipated Deer Valley East Village—demand still outpaces supply.

This means sellers still hold an advantage, but pricing homes correctly is key to attracting serious buyers.

4. Suburban Areas Will See Increased Growth

Affordability concerns in Salt Lake City will continue pushing buyers toward suburban areas with more space and lower prices.

Areas to watch in 2025:

• Draper & Lehi: Growing tech hubs with an influx of new construction.
• Bountiful & Farmington: More affordable alternatives to Salt Lake City with excellent schools.
• Park City’s Surrounding Areas: Buyers seeking vacation homes may look beyond the core Park City neighborhoods for better deals.

With more buyers moving outward, expect these areas to see strong home price appreciation in 2025.

5. Park City's Luxury Market Will Remain Strong

Park City’s high-end real estate market is expected to hold steady in 2025, thanks to continued demand from out-of-state buyers and investors.

Key drivers of the luxury market:
✔️ Demand for ski-in, ski-out properties remains high.
✔️ Limited available land for new developments keeps inventory low.
✔️ High-net-worth buyers are looking for investment properties and second homes.

"Luxury homes in Park City are still selling quickly, especially in premier locations like Deer Valley and Old Town," notes a local real estate analyst. "Despite economic shifts, demand for high-end vacation homes remains strong."

What This Means for Buyers & Sellers in 2025

✔ For Buyers: With home prices still rising, waiting could cost you. Buying earlier in the year before rates shift further may be a smart move.

✔ For Sellers: Inventory remains low, meaning well-priced homes will sell quickly. If you’re thinking about listing, 2025 is still a great year to maximize value.

✔ For Investors: Short-term rental demand in Park City remains strong, but be mindful of local regulations on vacation rentals.

Final Thoughts: Is 2025 the Right Time to Buy or Sell?

The real estate markets in Salt Lake City and Park City continue to be strong and competitive, but buyers and sellers should be strategic in their timing. With mortgage rates still above 6% and home prices rising steadily, waiting could mean higher costs down the road.

👉 Thinking about buying or selling in 2025? Let’s talk! Contact Trupp Real Estate today for expert guidance tailored to your real estate goals.