Summer is scheduled, but not without an encore from Spring. That's fine with me! I'll take a heat reprieve and enjoy this fantastic spring weather a little longer. I'm jumping in with some interesting information; perhaps I'm on to something …let's see.
Below, you'll see an INVENTORY statistic, for the past two years. It's interesting to note that we are nearly identical to the number of homes in inventory and the number of sales when compared to 2017. We are down in sales compared with 2018. I plan to watch this, but I'm wondering if we may slowly start a decent, mirroring the assent over the past couple of years? For the past two years, we've proven to peak in May, and sales slide from there while inventory climbs, so a drop over the next several months is a statistical expectation. The average sale price is still HIGHER, so prices have not started trending downward, and we're up 1.36% over last month (average sale price) as well as being up 9.4% since January 2019.
St George Utah real estate market expectations?
I'm interested in watching the market, our St George Utah real estate market has been doing well over the past few months. Interest rates ticked upward momentarily—however quickly retreated. I feel like that was more of an economic test, to determine the volatility, and it may have proved volatile since nationwide the housing market didn't react favorably to the tick upward in interest. Rising interest rates are a necessary evil that has been looming on the horizon far longer than most market watchers anticipated. It's a slippery slope though, that small test shows that if interest rates trend upward, the housing market could fall rapidly.
Does this mean you should refrain from buying? Not at all! If you're looking specifically for short term investing, you may not experience the gain you'd hope—but housing has always proved the most stable of investments long term. The market will go up and down, so those who are looking for longer-term buying—it's absolutely the best time to sell and jump on these ridiculously low-interest rates for purchase.
Many of the loans today are assumable. Over the past decade, that is a term most agents, buyers, and sellers don't even bother to consider—but as we approach the days of higher interest rates, assumable loans may become a real selling feature in those times. Back in the '80s, it was all the rage; I think we'll be seeing those trends again at some point. Money is cheap to borrow. Put it into an investment and hold on to your cash. Turning these properties, having an assumable loan may become the new "bidding war." Imagine if you've got a renter in there paying the mortgage over the duration as you wait for the right time to sell.
We crashed hard in 2006-2008, but here we are ten years later, right back at the top. In the grand scheme of things, the crash turnaround was quick, therefore showing the strength in housing investments. The people hurt the most were those who lost jobs and unable to make the payments. Let that serve as a reminder to save your pennies. Even during the housing crisis, investors were still making big bucks. Those were the ones to sock away their cash, and they were ready. Ride the wave people, watch the shoreline, and be prepared to dive in. There is always a housing opportunity; let me help you find it.
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, but I've also been able to accurately predict what's to come.
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 ready to make it happen.