Wasatch Front Housing Market Outlook: Slow Improvement, Not a Frenzy

What the 2026 Housing Outlook Means for Homeowners in Salt Lake & Davis County

Even though interest rates are still sitting higher than most buyers would like, the housing market isn’t frozen forever. According to a recent National Association of Realtors article titled “Housing Market Set for a 2026 Comeback,” we’re starting to see early signs that the market is slowly finding its footing again.

There’s a lot of built-up demand out there right now. Many buyers and sellers hit the pause button when rates became unpredictable, but they didn’t disappear — they’re just waiting. As soon as affordability improves even slightly or consumer confidence picks up, more people are expected to jump back into the market.

That said, this isn’t shaping up to be a sudden boom. NAR has been very clear that any rebound will likely be gradual. Inventory is still tight, borrowing costs remain higher than normal, and buyers are being more cautious with their decisions.

Instead of a fast spike in sales, the market is expected to ease back into a more balanced, “normal” rhythm — with activity building slowly over time rather than exploding all at once.

What This Means for Property Owners Heading Into 2026

For homeowners and investors, financing is still going to feel more expensive than it did in years past. Refinancing opportunities will likely stay limited for now, and any new purchases should be approached carefully. In the near term, it’s less about betting on fast appreciation and more about making sure your numbers work and your cash flow is solid.

On the rental side, high mortgage rates are continuing to keep many potential buyers in the rental market longer. That’s helping support rental demand — especially among households that are delaying buying. Owners who focus on keeping good tenants, pricing their rentals realistically, and maintaining their properties well are going to be in a stronger position.

Rent growth will continue to vary depending on location and property type, which means local market data matters more than national headlines. Smart positioning and realistic expectations will win here.

Overall, early 2026 favors patience, stability, and long-term thinking. This is a market that rewards dependable income, disciplined operations, and flexibility as conditions continue to evolve.

Utah Real Estate Market Update

As we wrap up the year, Utah’s housing market is showing a typical seasonal reset — but with some encouraging signs underneath.

The median sold price moved up to $610,000, a 1.68% increase month-over-month, even though prices are still about 5% lower than this time last year. That tells us the affordability adjustments that happened earlier in the year are still playing out — but pricing is starting to firm up again.

Buyer activity picked up in a meaningful way. The number of homes sold jumped 20.02% from November to 1,397 transactions, showing stronger engagement as year-end opportunities became more attractive.

Inventory tightened noticeably as well. Active listings dropped to 5,515 homes, a 22.44% monthly decline, although inventory is still about 7% higher than last year, which is healthier than what we were dealing with in early 2024.

Overall, December closes out the year with firmer pricing, improving sales momentum, and tightening inventory — setting a constructive tone as Utah transitions into the new year.

For more insights, check out the full NAR article here: Housing Market Set for a 2026 Comeback.