Will Prices Drop in 2026? Utah Real Estate Outlook – December 2025

As we approach a new year, the big question on everyone’s mind in Utah real estate is: Will home prices finally drop in 2026? December 2025 brings a mix of cautious optimism and lingering uncertainty, making it the perfect time to explore what’s ahead for buyers, sellers, and investors.

Looking Back: 2025 in Review

Utah’s housing market in 2025 was marked by steady demand, limited inventory, and stabilized mortgage rates. While the rapid price jumps of previous years slowed, most areas saw moderate appreciation rather than dramatic drops. Buyers found a bit more breathing room, but competition remained, especially for move-in-ready homes.

What’s Influencing 2026?

• Interest Rates: The Federal Reserve signaled a pause on rate hikes, and many experts predict rates will remain steady or even dip slightly in early 2026. Lower rates could increase buyer activity, putting upward pressure on prices.
• Inventory Levels: Utah continues to face a shortage of homes for sale, particularly in popular areas like Salt Lake City and along the Wasatch Front. Unless there’s a significant boost in new construction, this shortage will likely keep prices from falling.
• Economic Factors: Job growth and population trends remain strong in Utah, fueling demand for housing. Unless there’s an unexpected economic downturn, these factors support price stability.

Expert Predictions

Most local analysts expect Utah home prices to hold steady or see slight increases in 2026. While some neighborhoods may experience small corrections, a major price drop isn’t likely unless the market sees a big shift in supply or demand.

Advice for Buyers and Sellers

• Buyers: Don’t count on a big dip in prices. Focus on finding a home that fits your needs and budget, and be ready to act when the right opportunity comes up.
• Sellers: Well-priced, well-presented homes are still selling quickly. If you’re thinking about listing, 2026 could be a good time—just don’t expect bidding wars everywhere.

Bottom Line

While the days of double-digit price growth are behind us, Utah’s real estate market remains strong. Stay informed and be prepared to move when the time is right for you.