This report will take a look at the greater St George area (including Santa Clara, Ivins, and Washington). Below, you’ll see a two-year snapshot. If trends repeat, we may expect to see sales dip for September but, likely hold relatively steady as we enter Spring (when sales typically spike).
Comparing the previous two years in August, sales for 2019 are performing higher at approximately 33% higher (sold units) over 2018. The average sold sale price for August 2019 was $358,375, and that is only a couple of thousand dollars higher when compared to August 2018. YTD average sold prices are only about 4% higher when compared to last year. Washington County Tax assessors didn’t get this statistic, as they performed county-wide assessments, increasing property tax values. I witnessed several instances where values increased by 20-25% (my own property included). Typically, the county has valuations set fairly conservative, being a bit lower than the actual value, but this year they decided to change that (unannounced) and beef up the values. My thoughts on this topic, spiraled into an entire blog—so you can read more on my tax analysis, and opinions HERE: https://www.stgeorgeutrealestate.com/blog/opinion-st-george-utah-property-tax-needs-change/
Okay well….I got way off track on taxes so shifting back to the statistics…
The housing market has undoubtedly held steady and climbed ever so subtly over the past couple of years. I expect this to continue into next year. I do think we will stabilize and perhaps the level of pricing increase may look more like a flatline than a gradual climb. I do not foresee a noticeable decline in prices in general. I do expect to see a downturn at some point, a “bubble” if you will, may inevitably burst, but I do not expect it to be anything like we witnessed back in the 2007-2008 era. I feel it will be more of a market correction as we find a new normal for interest rates and financial foothold. Rates are still so low, but it can’t last forever. I think once the interest rate and economic inflation “trains” traveling toward each other on the same track meet, that is where (and when) we will find the bubble. The question is: What speed is "train one" traveling compared to "train two"? Both trains have left the station….this much we do know.
With this much potential volatility….is it a good time to buy or sell?
To be clear, housing markets are all volatile. Always. Acts of war or acts of God can turn a market on its head almost instantly, and we don’t always see it coming. The result, however, is that real estate has always been a safe bet. If you’re looking to flip or turn quickly, then you’re naturally assuming more risk. If you’re looking for longer-term, you’ll be fine. If you’re a buyer…Sure, you could wait…maybe prices will come down. They might. But rates will likely go up too, so in the end, you’re still paying roughly the same amount each month. And, if you plan to sell, waiting may create a lower purchase price, but you’ll likely sell for less too (again…same financial boat). Sell high, buy low….it’s the dream. But realistically, it’s virtually impossible to do in a moving purchase (meaning you’re selling your current home to buy another). Yes, you’re paying “top dollar” if you purchase today, but you’re also selling for “top dollar.” You can remain in your current environment or make the change—sell your existing home for top dollar and begin the next chapter. I’m ready when you are, give me a call, and we can chat.
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