Southern Utah January 2026 Real Estate Market Report

by Dave Diegelman

Add Me To Your Contacts:

NEW Shorts Video...(jsut the facts mam,...Jack Friday)

Southern Utah Market Full Report by Dave Diegelman

www.UtDreamHomes.com

Feel Free to Follow Me on Social Media!

January 2026 Southern Utah Real Estate Market Report, Edition # 73

Hello 2026!...

Last month, we explored the unique challenges of selling a home during the holiday season. Keeping a property show-ready on short notice—while Thanksgiving, Christmas, or Hanukkah décor is scattered throughout the house, paired with shorter days and nonstop seasonal distractions—can feel overwhelming. Buyers who are out shopping right now are genuinely serious and trying to get a jump on the oncoming market peak that typically hits in March-May.

And there’s more good news: interest rates have dipped back into the low 6’s, which is a welcome relief for everyone. While the stock market is breaking records, homebuyers are learning that prices—despite record-high inventory—aren’t collapsing. We’re in a market that requires strategy, balance, and a steady hand on both sides of the transaction.

As of the end of December 2025, we’ve seen 418 sold listings, compared to 346 at the end of December 2024. The absorption rate in October climbed to 5.1 months, meaning we currently have more than five months of inventory based on current sales pace—up over 15% from last year. Meanwhile, average days on market ticked down slightly from 80 days last month to 78 days, and still lower than the 81 days we saw at the end of December 2025.

So with this in perspective, where is the real estate market headed in 2026? In Southern Utah, the real estate market seems likely to stay balanced and stable through 2026. With inventory rising but still within a range favoring sellers (about 4–5 months of supply in 2025), homes are selling — though not at the breakneck pace seen during the pandemic-era boom. Moderate price appreciation of 3-4% per year is expected, reflecting healthy demand without the volatility of past years. For buyers, that means more choices and less pressure; for sellers, success will increasingly depend on accurate pricing and strong marketing rather than hoping for bidding wars.

Buyers— You’re in a uniquely advantageous position right now. Inventory continues to climb, giving you a healthier selection of homes than we’ve seen in years. Our list-to-sale price ratio has dipped to 95%, down from 96.2%. That may seem minor, but it’s a clear signal: sellers are more willing to negotiate—on price, terms, and even contingencies.

Historically, December through January are among the best months to buy real estate in Southern Utah. Demand naturally tapers off during the holidays, and motivated sellers often become more flexible, creating excellent opportunities for buyers who are ready to act.

Sellers— it’s time to bring your A-game. With inventory rising, competition is intense, and in today’s market, mediocre marketing simply won’t cut it. We recently listed a home that went under contract on day one, fell out of escrow, and still secured a new accepted offer within two weeks—proof that properly priced and professionally presented homes still move quickly.

Prices are not collapsing, but success now depends heavily on accurate pricing from the very beginning. On average, realistically priced homes are selling at about 95% of list price. Sellers who trust and follow their Realtor’s professional guidance are seeing solid, timely results.

But here’s the reality: nearly 40% of homes fail to sell during their listing period. Why? Poor strategy, weak presentation, and unrealistic pricing.

Your biggest competition? New construction. For the first time in a long while, many new homes are priced more competitively than resales. Builders are also offering aggressive incentives, including temporary mortgage rate buy-downs—sometimes buying interest rates to as low as 4% when buyers use the builder’s preferred lender (with the cost of that buy-down baked into the purchase price).

This is not the time to gamble with an inexperienced agent. There’s simply too much at stake in today’s market.

CLICK HERE TO SEE MARKETING SAMPLES If you are considering your options, we have an excellent online evaluation tool called HOMEBOT that you may use without obligation FOR FREE. Click Here to Set Up Homebot and best of all it only takes about 3 minutes for you to set up!