Lehi home buyers have more leverage heading into fall. Sales volume dropped about 18% in July compared to a year ago, and the average sale price slipped below $690,000, according to Wasatch Front MLS data compiled by Coldwell Banker Realtor Skyler Beltran.
Just 119 homes closed in Lehi during July, down from 145 in July 2025. The average sale price fell to $687,419, a decline of about $12,700 from the year-ago figure of $700,084.
The median price tells a slightly different story. It edged up to $629,000 from $625,765, a gain of less than 1%. The split suggests fewer high-end sales pulled the average down while the middle of the market held steady.
Days on market held steady. Homes sat an average of 54 days, unchanged from a year earlier.
More choices, smaller homes
Buyers shopping Lehi now have 339 active listings to browse: 270 existing homes and 69 new-construction properties, with 63 of those priced above $1 million. The inventory buildup mirrors a national shift. Months of supply climbed from 3.8 in January to 4.6 by June nationally, according to National Association of Realtors data reported by Ramsey Solutions.
The average home that sold in July was 2,984 square feet, down from 3,080 a year earlier. But buyers paid more per square foot: $235.33, up from $231.04, a 1.9% increase.
The most expensive July sale was a 6-bedroom, 5½-bath home on 1.09 acres that fetched $2,024,000. The least expensive was a 3-bedroom condo at $310,000.
Affordability squeeze persists
The cooling prices offer limited relief for many would-be buyers. Mortgage rates in Utah averaged 6.55% in late July, according to a Lehi Free Press analysis published July 29. That analysis found 74% of Utahns are priced out of a median-priced home, citing the Utah Housing Strategic Plan.
The Provo-Orem-Lehi metro's median household income of $101,014 would need mortgage rates near 2.3% to make the metro's $572,450 median home affordable by standard lending guidelines. Rates haven't been that low since the pandemic.
More than 61% of Utah mortgage holders carry rates below 4%, creating a lock-in effect that keeps existing inventory tight even as new construction adds supply.
"The housing market is inching forward as sellers reset expectations, price growth cools, and buyers gain more negotiating power," Danielle Hale, chief economist at Realtor.com, said in the company's mid-year national forecast released July 9, as reported by ConsumerAffairs.
Local policy response
Lehi officials have taken steps to address affordability. On July 14, the City Council approved an interlocal agreement creating the Thanksgiving Point Housing Transit Reinvestment Zone, a tool aimed at spurring housing near transit. In January 2025, Mayor Mark Johnson proposed an attainable housing overlay zone offering a 50% density bonus for homes of 1,200 square feet or less on 6,000-square-foot lots, deed-restricted for owner-occupancy.
The MLS data was current as of Tuesday, Aug. 4. Beltran publishes the next monthly snapshot in early September.
