With the election now over, a common question arises: How will the new presidential administration affect real estate prices in Utah? It’s a fair inquiry, given the intersection of politics and economics, but the truth is far more nuanced—and rooted in data.
The Role of Elections in Real Estate Prices
Looking at the last 35 years of real estate data for Salt Lake County, historical trends reveal an interesting pattern. When new presidents take office, there’s often a year of appreciation in the housing market. However, this trend has less to do with election results and more to do with broader economic cycles.
Here’s the key takeaway: Over the past 35 years, Utah has seen consistent appreciation in housing prices, with only four years of decline and two years of stagnation. Elections may influence consumer sentiment, but their direct impact on home values pales in comparison to other market forces.
Bigger Influencers: Inventory and In-Migration
The two largest drivers of real estate trends in Utah are inventory levels and in-migration. Salt Lake County currently has about 2,500 active properties for sale, representing roughly a 2.5-month supply—a healthy but tight inventory level. Simultaneously, Utah continues to attract new residents and businesses, fueling demand for housing.
This steady influx of buyers, coupled with limited housing supply, places Utah among the most robust housing markets in the country. Historically, many Utah zip codes rank as some of the highest appreciating areas nationwide.
Looking Back to Predict the Future
The median home price in Salt Lake County peaked in May 2022. While prices have softened slightly—down just 3-4% from that peak—the market remains strong. Even in the face of elevated inventory levels, year-over-year appreciation persists, albeit modestly at around 3% in recent years.
What to Expect for 2025
Based on historical data and current market conditions, 2025 is poised to be another year of appreciation. Experts predict median home prices will increase by 8-12%, with the bulk of that growth occurring between February and July.
For prospective buyers, this means the next 60 days represent a prime opportunity to lock in favorable prices and negotiate. As appreciation takes hold in early 2025, competition is expected to rise, potentially limiting flexibility for buyers.
Bottom Line
While election outcomes may grab headlines, they aren’t the primary drivers of Utah’s real estate market. Instead, factors like inventory levels, in-migration, and long-term economic resilience will shape the market in the coming year.
If you’re considering buying a home, acting sooner rather than later could save you money and position you to benefit from the projected appreciation in 2025.
Now’s the time to take the next step—explore your options, secure financing, and enter the market with confidence. Reach out today to learn how you can make your move in this dynamic real estate environment.