This is St George, Utah real estate housing market report, reviewing home sales for July 2020 and comparing sales from previous years.
If only we could place the housing market in a syringe and offer total COVID19 immunity to the public, the way the housing market is seemingly immune—we'd be set! The St George housing market is doing fantastic. It's a wonderful venue for sellers, not as enjoyable for buyers. The inventory is as low as I've seen it (maybe ever), and demand is full throttle. Iced with extortionary low-interest rates, it's almost unbelievable.
This recipe is causing prices to trend upward, and some are trending fast. Coveted home features are high in demand and low in availably creating instant bidding wars and higher pricing. Coveted features include a larger lot, private lot, backs to open space, view, large garage, open floor plan, newer, pool, single level, and of course, lower price points are desired. Under $300,000 sells instantly (but typically without most of the coveted features mentioned above). Nightly rental or vacation rental homes for sale are a popular investment these days. With cheap money, it can make a strategic investment, especially for those who would like a second home in St George and would like to offset their expenses for owning a second home.
Let's have a look at the graph below.
Do you see that red line falling downward …that's the inventory! See the black like inching upward? That is "sold" homes. The proximity of the two offers the results mentioned above. The closer those two get, the more insane this market will be.
Let's take a look at another fascinating graph (also showing Greater St George for the past two years). The "sold volume" is up substantially. 61% compared to July 2019, and the Average Sale Price is up 29% (also compared to July 2019).
The "Sold Volume" is skewed, as much of this activity was April, May, and June delayed buying when much of the nation was on pandemic lockdown. However, once quarantine was relaxed, the home buying flood gates opened, and have yet to close. I do expect to see this trend continue for the next few months. Things may slow during the November elections as many will await the nation's fate and reactions with stocks and financial sectors. I do not think we will see any eruption (be it catastrophic or a surge). I believe we will have the election and typical Holiday "slow down," and then we'll see things pick up again in January. It is very fluid and more volatile than we've ever witnessed historically. With all that we have as a foundation to our house of cards here in the housing market: elections, financial sectors, pandemics, a possible COVID vaccine, a possibility of the resurgence of the virus…these are all areas that can change everything seemingly overnight.
What are your thoughts on the market? How is the market in your area? I'd love to hear from you.
I am Paula Smith, Associate Broker with RealtyPath of St George. I have been a licensed, full-time real estate agent in Southern Utah since 2006. I have been selling residential real estate during all of the changes in the market, as well as witnessing our St George area grow to become one of the fastest-growing cities in America. I keep my finger on the pulse and not only pay attention to what is going on, and I've accurately predicted future market conditions.
Allow me to be of assistance and earn your business. If you’ve got a home in Southern Utah that you’re thinking of selling and you’d like a property market report, I can send that to you.
If you're ready to buy or sell, I'm prepared to make it happen. 435-773-3751