Welcome to 2017, I suspect we will be in for an interesting real estate market ride this year. In this report, let’s take a look at the year end report for the St George, Utah real estate housing market. I’ll include market statistics and information assessing our Southern Utah real estate, and sold homes for 2016 as well as offering my opinions for what to expect in 2017. Let’s begin by showing a 2015 vs 2016 market snapshot. This section will include information for the Greater St George area, including: St George, Washington, Santa Clara, and Ivins (Sunriver is in St George and will be part of this report).
You’ll notice, for year end we are 10.2% higher in sales and the median sale price is up 6.3%. This is an impressive gain for sure. The average Days on The Market (DOM) for St George, in 2016 is 83 (this is about 22% less compared to last year) and the average Sale Price is $272,344. Take a look at this next graph, this illustrates our inventory being very low and sales remain solid, thereby reducing DOM.
How Much Should We Offer Less Than List Price?
A very common question I have from prospective buyers, is “how must less than list price can we offer?” The 2016 greater St George Real Estate year end report shows that the average list to sale price (meaning the difference from the amount that the home was listed for less the amount accepted) was $5,173. Of course, each transaction can vary and they are all on a case by case basis. Some homes will sell above asking price and others may go much less; but this is a good point of reference and typical of what you can expect. Homes that are priced well, sell quick and usually very close to (if not full) asking price. Homes that are overpriced tend to allow for offers to be lower. The rule of thumb in St George is that there are almost never any “great deals”. Buyers looking to make lowball offers in attempt to get a “great deal” rarely result in a sale, usually it results in a frustrated buyer. Homes have always sold for fair market value, even in our foreclosure explosion. Sometimes you could achieve a decent deal (but you’d still have competition) however, banks and sellers almost never accept an offer below market price.
Sold Homes in SunRiver
Sunriver is popular for buyers, and I sell both new construction and resale homes in Sunriver. Last year (2016) I sold approximately 5 million in real estate, about 40% of my business was in Sunriver. I have many buyers and sellers there so this section will be specific to Sunriver Sold Homes. A very interesting graph, shows that Sunriver Sales have slowed slightly in comparison to 2015, sales are down by 12% however the median sale price is up 4.5%.
This number being lower shouldn’t cause alarm. Sunriver is nearing their last phase and inventory has been low in there all year, this would contribute to having lower sales. The sales office in Sunriver has been less friendly towards outside agents recently, thus causing many agents to shy away from the community altogether likely adding to a reduction in overall sales. Having said that, it’s a great community and I have no concerns selling both new and resale homes. I do however; recommend using an outside agent simply due to the fact that the sales agents on site represent the BUILDER….NOT THE BUYER. Buyer agents can achieve exactly the same deal (or better) as onsite agents and using an outside agent will NOT cost you any more money. If you’re looking for a home in Sunriver, I have a wonderful listing in Reflections, which is the gated section.
This upgraded beautiful home has amazing views and a great price—check it out here: http://www.stgeorgeutrealestate.com/blog/4722-s-sonata-circle-st-george-reflections-sunriver/
What Does the 2017 Market Hold?
I suspect the St George real estate market will continue where 2016 left off. I suspect the inventory will increase a bit in January and February (during the Parade of Homes) which is typical for this area. Interest rates have moved up and will likely continue down that path over the course of the next year. This may cause prices to hold, therefore by the end of the year I suspect will have similar pricing gains as 2016, likely not any higher. It’s a good time to invest in St George, and if you purchased within the past few years, congratulations, you likely already have a sizable amount of equity in your home. Are you thinking of moving to St George? Visit during the Parade of Homes. It’s a great opportunity to see some amazing homes, it’s a self guided tour with homes throughout the St George area, this will force you into neighborhoods and subdivisions which will give you a chance to really explore. You may not be interested in purchasing a Parade home (usually Luxury homes) but you’ll enjoy the journey for sure!
Can I be of assistance? Give me a call or send me an email. Contact Paula Smith