March 2020 St George Real Estate Market Report
What an unusual time we are facing in the world today. The pandemic is something everyone has considered, but few have planned. We are still quite early into the ripple, and the full extent of the effect may not be realized for several months. Perhaps it will be a small blip on the radar, or maybe it will spiral. I suspect the result will be somewhere in the middle. My thoughts are that the housing market will momentarily lose some traction, but I do not suspect that we will see anything genuinely significant. Honestly, I'm wondering if this could be the calm before the housing surge. People are taking a life break, spending time with family or alone, and likely reflecting on life. Those who have been considering changing their current situation, moving across town or cross country may decide at this moment….(or once we are in the clear) to act now on these pent-up plans. Others may be financially forced into it, job or pay loss may result in forced sales and relocation. With ridiculously low-interest rates, stocks that were seeing all-time highs (I'm sure many people moved their profits to a more stable portfolio at the first sign of this impending trouble)…I don't know—I think we may see a bit of a frenzy when the wave recedes.
St George Utah Housing Market Update
So let us take a look at the first three months of 2020. It may be interesting to review it again in another three months to analyze more of the effect. But for now, I'm going to focus on the facts up until this point (March 15, 2020).
This graph will pull the past two years (ending in February, since we are not yet through March).
It's most interesting to point out the current and past two February's (circled in orange and a line drawn across). Quite steady. I'm so curious to see if the traditional climb is in store for us. I do suspect to witness the rise in March, but the end of April will be the most telling (since home sales typically take 30 days to close, the indicators will run approximately a month behind).
Coronavirus Update for St George Utah Real Estate
As of TODAY (March 15, 2020), there are 528 homes PENDING (Greater St George, residential). It's MOST interesting to note that of these 528 homes, 420 of them went pending as of February 1, 2020. Some of these escrows may fail, but most will likely close—which means we are right on track for our climb (and seemingly ahead of the past two years).
Of the above mentioned 420 homes that are pending since February 1, 2020; 92 of them are priced $500,000 or more. Higher priced pending homes aren't uncommon, coming off the Parade of Homes, which showcases most of the homes $1 million and above. Still, 21% of the pending homes being over $500,000 show financial strength.
"Fearful when others are greedy and greedy when others are fearful." Warren Buffet. I can relate this to the lack of toilet paper on the store shelves, and I'm curious to see the outcome of the housing market as it will relate. My prediction is that we will witness resilience, and we become more robust; it's the American way. I do feel like we will witness a surge in the housing sector once the dust (or germs) settle. What are your thoughts? Have your thoughts or actions shifted with buying or selling a home? I'd love to know! Comment or reply and let me know your thoughts.
My thoughts and prayers go out to all individuals who have been affected or lost due to the Coronavirus. While we all push forward, we should all stop to remember there are those suffering. Please be kind to your neighbor and check on them. Seniors are the most vulnerable, reach out to someone you know, or someone you don't know and extend compassion and sharing. Do not lose sight of humanity and allow us to unite during these difficult moments. People don't always ask for help—so please don't wait for a request.
"I will persist until I succeed. Always will I take another step. If that is of no avail I will take another, and yet another. In truth, one step at a time is not too difficult... I know that small attempts, repeated, will complete any undertaking."
― Og Mandino
Meanwhile, check out a few of my listings.
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