The Utah housing market in February 2025 presents a complex landscape characterized by declining sales prices and increased inventory. The Median Sales Price has decreased by 3.0% year-over-year, settling at $549,200. This decline contrasts with the Median List Price, which has seen a modest increase of 1.6% to $610,500. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic conditions.

Despite the decrease in sales prices, the median Price Per Square Foot has risen by 5.9% to $273, indicating that while overall prices are down, the value attributed to each square foot of property has increased. This could reflect a shift in buyer preferences towards smaller, more efficiently designed homes or a focus on higher-quality finishes and locations.

Sales activity has slowed, with the number of Homes Sold dropping by 7.9% year-over-year to 2,509 units. Pending Sales have also decreased significantly by 13.1%, suggesting a cooling market. However, New Listings have increased by 7.8%, reaching 4,172, which contributes to the growing inventory, now up by 20.3% to 10,274 homes. This increase in supply, coupled with slower sales, has resulted in a doubling of the Months of Supply to 4.10 months, indicating a shift towards a more balanced market.

The Median Days on Market have increased by 12.0% to 65 days, reflecting the slower pace of sales. The average sale to list ratio has slightly decreased by 0.1% to 98.8%, suggesting that sellers are receiving offers closer to their asking prices, albeit with a slight downward adjustment. The percentage of Homes Sold above list price has also decreased marginally by 0.4% to 21.7%, indicating fewer bidding wars and a more tempered market environment.

Price Drops have become more common, with a 4.8% increase year-over-year, now affecting 27.3% of listings. This trend suggests that sellers are becoming more flexible in their pricing strategies to attract buyers. Additionally, the percentage of homes going off the market within two weeks has decreased by 0.8% to 31.7%, further highlighting the slower market dynamics.

Overall, the Utah housing market in February 2025 is characterized by increased inventory and slower sales, leading to a more balanced market. While sales prices have declined, the rise in Price Per Square Foot suggests a nuanced shift in buyer preferences. Sellers may need to adjust their expectations and pricing strategies to align with current market conditions.