What to Expect in the 2025 Housing Market in Southern Utah

by Troy Moultrie

🏡 What to Expect in the 2025 Housing Market in Utah

By Troy Moultrie | Treasured Properties

Is Now the Right Time to Buy or Sell in Utah?

If you’re thinking about buying or selling real estate in Utah this year, you’re not alone — and you’re wise to be asking the right questions.

The 2025 housing market is shifting, but not crashing. After two wild years of interest rate hikes, bidding wars, and unpredictable trends, we’re finally seeing signs of balance. Whether you’re a first-time buyer, a move-up seller, or an investor trying to time the market, this blog gives you a clear breakdown of what to expect and how to position yourself for success.

🔮 1. Rates Are Stabilizing — But Not Dropping Like You Might Hope

Interest rates soared in 2023 and remained elevated through 2024. As we head into 2025, most experts predict mortgage rates will hover in the 6% to 6.5% range for much of the year.

That’s not ideal for affordability, but it’s also not expected to get dramatically worse. In fact, many buyers are adapting and finding creative solutions like:

Using rate buydowns from sellers or lenders
Assuming low-interest loans from sellers
Shopping builders who offer temporary rate reductions

💡 Smart buyers know how to win in any market — not just when rates are at rock bottom.

💰 2. It’s Officially a Buyer’s Market — and That’s Rare in Utah

Right now, buyers are in the driver’s seat.

Sellers and builders across Utah — even in hot spots like St. George and Hurricane — are offering thousands in concessions to get homes sold. These incentives often include:

Paying your closing costs
Covering rate buydowns
Offering upgrades or warranties

What does this mean for you?

✅ You can increase your buying power

✅ You’ll save hundreds per month on payments

✅ You get to negotiate on price, terms, and repairs

🧠 You can only negotiate once — when you buy the home. Once the market heats back up and rates dip, you’ll be forced to compete and overpay just like people did during the COVID housing frenzy.

📊 Utah Inventory Snapshot: Then vs. Now

To understand how much things have shifted, here’s a look at local inventory levels right here in Southern Utah:

In 2009, during the last major housing slowdown, there were 2300 homes on the market.
In 2020 (COVID), inventory dropped to just 200 homes listed.
Today in 2025, we’re still sitting at only 1.5 months of supply — well below a balanced market (which is 4–6 months).

Even though buyers have more leverage now, inventory is still historically tight. The best homes — especially in sought-after areas like Washington, Ivins, and golf communities — still move quickly when priced right.

🧱 3. Builders Are Back — and They’re Offering Deals

After pulling back during the rate hikes, Utah’s builders are back in action — and they’re motivated.

We’re seeing more new construction homes in 2025, with builders sweetening the pot to attract buyers:

$10,000–$25,000 in concessions
Paid closing costs or interest rate buydowns
Free landscaping or interior upgrades

Some builders are even offering extended warranties or flexible financing for buyers who commit now.

✅ Pro Tip: If you’re interested in building, now is the time to lock in pricing before labor and material costs rise again.

🏠 4. Home Prices Are Leveling — But Not Crashing

Despite fear-driven headlines, Utah’s home prices have held steady thanks to strong population growth and limited inventory.

We’re seeing slight price corrections in some areas, but demand remains high in desirable neighborhoods. What’s really changed is:

Fewer bidding wars
More normal days on market (30–60 days is common)
More room to negotiate

🤝 5. Sellers Need to Be More Strategic

In 2021–2022, you could list your home, pick your price, and still have 10 offers by the weekend.

Not anymore.

Sellers in 2025 need to:

Price competitively
Stage and prep the home professionally
Offer flexible terms or minor concessions to attract the right buyer

If you’re not working with a seasoned agent who understands this market, you risk sitting — and dropping your price later.

🌄 6. Utah Is Still a Relocation Magnet

Utah remains one of the most sought-after relocation markets in the U.S.

Why?

No wildfires or hurricanes
Incredible outdoor access
Business-friendly economy
Lower taxes than California, Oregon, and Washington
Safe communities and great schools

This steady influx of buyers keeps demand strong — especially in Southern Utah’s resort-style towns, where retirees, families, and second-home buyers are all competing for the same inventory.

🏦 7. Lending Options Are Evolving

While traditional 30-year mortgages are still common, we’re seeing more buyers explore:

Assumable loans (especially VA and FHA)
2-1 buydowns to ease into higher rates
HELOCs or bridge loans to avoid selling before buying

If your lender or agent isn’t presenting creative solutions, it’s time to upgrade your team.

⏳ Bonus: Don’t Miss the Window Before Rates Drop

Everyone’s waiting for rates to drop. Here’s the truth:

✅ When they do, prices will spike

✅ Competition will return

✅ Concessions will disappear

✅ You’ll lose your buyer advantage

Now is the moment when you can negotiate, buy smart, and refinance later if rates improve.

🧠 “Buy the house, date the rate. This is when smart buyers make their move — not when the headlines catch up.”

❓ FAQ: Utah Real Estate Market 2025

Q: Is now a good time to buy in St. George?

A: Yes. With more inventory, less competition, and generous seller concessions, buyers can lock in great deals right now — especially on new builds and VA/FHA assumable homes.

Q: Will interest rates go back to 3%?

A: Unlikely anytime soon. Experts expect 6–6.5% to be the new normal through 2025.

Q: Should I sell my home now or wait?

A: If you price strategically and market well, now is still a strong time to sell — especially if you’re moving to a more affordable market or downsizing.

💼 Final Word: Work With Experts Who Know This Market

At Treasured Properties, we know Southern Utah — and we’re guiding clients every day through this evolving market. Whether you’re buying your first home, moving up, or cashing out while rates are still manageable, we’ll help you make the right move at the right time.

📲 Call or text Troy Moultrie at 435-327-5545

📍 Serving St. George, Hurricane, Washington, Ivins, and surrounding areas