Sellers in St George, Utah have been enjoying a firm “sellers market” for quite some time, but is there a shake up on the horizon? Housing trends across the board have been signaling a slowdown or softening of the real estate market. Today, we can begin to see this, here in Southern Utah. These are similar trends as those we witnessed around 2007, when the housing market began to tumble. Take a look at this past 2 years graphic.
Here is a link for the National Association of Realtor statistics which also signal a similar softening of the market: NAR Market Conditions. So is there a “housing market spiral approaching”? I do not suspect this will be the case. I do, however, expect to see some real stabilizing, as opposed to the value gains we’ve witnessed over the past several years. Our inventory remains low, however, builders are contributing daily to the inventory with new construction. New construction has been taking control for well over a year, simply seizing the buyer opportunity with the reduced inventory. Buyers are unable to find their perfect home, so they are forced to build. Building is NOT less expensive, and as I’ve said for years, you get (a lot) more “bang for your buck” with resale, but if a suitable home isn’t out there….a buyer has limited options. Buyers who are already locked in (and under construction) are already realizing some equity as the construction costs continue to increase.
My advice, if you’re thinking of selling, I would do that now. Prices may very well be in (or near) their peak and a continued softening may result in a market shift. I do NOT believe prices will begin to "plummet", I know some of you buyers are thinking there could be an opportunity. In a sense, there may be an opportunity coming for buyers but it's unlikely it will be significantly lower prices. Opportunity that sellers may lose (and buyers may attain) is strength. Sellers may lose their ability to be increasingly firm and sellers may likely witness a decrease on multi-offer situations. Additionally, buyers may begin requesting more repairs be completed and/or monetary credits…and sellers who have recently been declining such requests, may suddenly find their house “back on the market” from a buyer who walks (maybe the buyer will find better dealings right next door with a seller who is more willing to give). This will begin the cycle of sellers with less "arm flex" and sellers who are more willing to deal in an effort to win the buyer. I am not implying that our market will shift directly to a “buyers’ market” but I do believe we will begin to see the progression of the transition soon. It may be another year or two (or three) before the power totally changes hands, but stubborn sellers may be the first to feel the pinch.
SELLERS: Get your home on the market and do some amazing and innovative marketing techniques to make it stand out. If you’re in need some assistance with this, you’re in luck…I can help! Just ask.
BUYERS: It’s still a good time to buy. If you’re selling a home, you’ll be selling for more now than you will if the market shifts, so waiting for prices to drop will also drop the profits on your current home. If you’re a first-time buyer—you’re still in great shape. Low down loans and continued low interest rates are making monthly payments affordable. I have strategies for buyers who are concerned with the possibility that prices may decline, reach out and we can chat. Just remember that historically real estate has always remained a stable option for investing, despite the ups and downs of the market. Prices will always go up and they will go down, timing is key and having long term plans is important. Will you plan to stay in one home for only a couple of years? Is this your forever home? These are all factors for decisions. Knowing your options is where I can help. Contact Paula Smith, Associate Broker at RealtyPath of St George.
I have a new Sunriver listing! This is a Windsong (currenlty built as "Aspirations"). It's a 3 bedroom (yes--the office actually has a closet--so it's a true 3 bedroom) and it's 1740sqft with a 2 car garage. We are priced at $299,000 on this very clean home. Sunriver is a 55+ community. Here is a link for additional information: https://www.stgeorgeutrealestate.com/blog/1736-wide-river-dr-st-george-utah-84790-sunriver/
ANOTHER NEW LISTING COMING SOON! This one is fabulous! This home is a 4 bedroom, open concept, wood floors, mature landscape, quiet & centrally located in St George, RV parking a POOL, and still a wonderful full size backyard. Best of all....NO HOA! I believe this home will be priced at $375,000. We will have photos by next week and this will hit the MLS on November 1st. If you'd like to be first to receive information, reply and let me know.
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.