Are home prices dropping in Salt Lake City?
Not overall. The typical home in the City of Salt Lake City was valued at $568,970 in September 2026, up 2.36% from a year earlier, per the Zillow Home Value Index. Values did slip about 0.9% between February and June 2026, then rose every month from July to September. Across Salt Lake County, the median sold price for single-family homes rose 2.1% in the third quarter of 2026, to $648,350, per UtahRealEstate.com data, and homes sold at a median 98.10% of their original asking price, up from 97.78% a year earlier. Zillow's city index is still about 2.1% below its June 2022 peak of $581,463, which is the nearest thing to a real price drop in the recent record. Condos are the softest segment, with the typical Salt Lake City condo down 0.46% over the year to September 2026.
What has changed is the asking side. More homes are for sale, and more sellers are cutting their list price. That gives buyers more room to negotiate, but it has not pulled closed prices down.
How have Salt Lake City home values moved in 2026?
They rose through the winter, dipped in spring and rose again over the summer. The table shows Zillow's typical value for the city at each turning point.
| Month | Typical home value | Change |
|---|---|---|
| June 2022 (peak) | $581,463 | Highest on record |
| September 2025 | $555,850 | 4.4% below the peak |
| February 2026 | $567,740 | Up 2.1% from September 2025 |
| June 2026 | $562,843 | Down 0.9% from February |
| September 2026 | $568,970 | Up 1.1% from June, 2.36% for the year |
Sources: Zillow Research ZHVI files, City of Salt Lake City, all homes, retrieved November 6, 2026.
So the honest short answer is that prices dipped this spring and recovered. They remain about 2.1% below the June 2022 peak, which is the closest thing to a real price drop in the recent record.
Why are so many Salt Lake listings cutting their prices?
Because inventory grew faster than buyers. Active listings in Salt Lake County rose from 2,088 in January 2026 to 3,366 in August, about 61% more homes to choose from, per Realtor.com Economic Research. Over the same months the share of listings with a price reduction rose from 19.24% to 30.43%.
A price cut is a change to the asking price, not the selling price. Many of those cuts bring a list price down to where the market already was. The price-reduction guide covers what to ask about a specific home that has been reduced.
Do sold prices tell a different story?
Yes. Homes that actually closed sold for more, not less. Here is the third quarter of 2026 against the third quarter of 2025 for Salt Lake County single-family homes.
| Measure | Q3 2025 | Q3 2026 |
|---|---|---|
| Homes sold | 2,357 | 2,105 |
| Median sold price | $635,000 | $648,350 |
| Median price per square foot | $252.38 | $251.42 |
| Sold vs original asking (median) | 97.78% | 98.10% |
| Sold homes that had a price reduction | 43.7% | 39.6% |
| Median days on market | 35 | 35 |
Sources: UtahRealEstate.com closed sales, Salt Lake County single-family, July 1 to September 30, retrieved October 2026.
Fewer homes sold, down 10.7%, but those that did sold closer to their original asking price. Price per square foot was essentially flat, which is a useful check. It suggests the median rose partly because the homes that sold were a little larger, not because the same home cost more.
Which parts of the market are softest?
Condos. Zillow puts the typical Salt Lake City condo or co-op at $402,845 in September 2026, down 0.46% from a year earlier. The typical single-family home rose 3.04% to $607,490 over the same year. If you are shopping for a condo, you are more likely to find a seller who has already reduced, and an average-price breakdown by property type shows how wide that gap is.
At the top end, the county's $1M+ single-family sales rose from 359 to 372 in the third quarter while the wider market fell, and their median rose 6.5% to $1,373,500. Higher-priced homes have not softened.
What does this mean if you are buying or selling?
For buyers, the gain is choice and negotiating room, not a falling price. With more listings and more reductions, you can take time to compare, ask for repairs or concessions, and walk away from a home that is priced too high.
For sellers, the risk is starting too high. Homes that are priced right are still selling in about 35 days at close to asking. A home that starts above the market is likely to join the 30% of listings carrying a reduction.
In both cases, the citywide figure will not price a particular house. Recent comparable sales on the same streets will. If you want to look at those for a home or neighborhood you are considering, reach out here or call me at 801-628-1281.
Practical questions
What else do buyers ask about this?
Are home prices dropping in Salt Lake City?
Not overall. Zillow's index for the City of Salt Lake City reached $568,970 in September 2026, up 2.36% from a year earlier. It dipped about 0.9% between February and June 2026 and has risen every month since. The median sold price for Salt Lake County single-family homes rose 2.1% in the third quarter, to $648,350.
Are Salt Lake City home prices lower than their peak?
Slightly. Zillow's city index peaked at $581,463 in June 2022. September 2026's $568,970 is about 2.1% below that peak, so prices have recovered most of the 2022 to 2023 decline but not all of it.
Why are so many Salt Lake listings showing price cuts?
Inventory grew faster than buyers. Active listings in Salt Lake County rose from 2,088 in January 2026 to 3,366 in August, and the share of listings with a price reduction rose from 19.24% to 30.43%, per Realtor.com. Sellers are cutting asking prices, but closed prices have held.
Are condo prices dropping in Salt Lake City?
Slightly. Zillow puts the typical Salt Lake City condo at $402,845 in September 2026, down 0.46% from a year earlier, while the typical single-family home rose 3.04% to $607,490. Condos are the softest part of the city market.
Is now a good time to buy a home in Salt Lake City?
It is a better time to negotiate than in recent years. Buyers have more listings to choose from and more sellers are reducing prices. Prices themselves are not falling, so the advantage is choice and terms rather than a lower price for the same home.
Will Salt Lake City home prices drop in 2027?
No one can say with confidence. The figures through September 2026 show modest gains, rising inventory and more price cuts. Those are signs of a market balancing out, not of a decline, but they can change with mortgage rates and the local economy.