Home prices are dropping in St George.  The market report for August is just in and confirms this information.  Just like almost everywhere else in the nation, the real estate market in St George is cooling.  Higher interest rates have scared some buyers off or priced them out of the market.  There seems to be a “wait and see what’s next” mentality right now.  The inventory of available homes for sale has increased significantly and home prices continue to drop month over month.

Let’s review the St George Utah market report for August 2022 to see what the current market trends are.  It’s no secret, the St George real estate market has been crazy over the last couple of years.  When we compare the last couple of months, things are starting change and the market is correcting itself.   Home prices are definitely dropping in the St George real estate market, we’ll look at what the history has been over the last 3 years, month over month.

This is the most current information regarding housing prices and inventory of homes for sale over the last couple of months taken from the Washington County MLS.  It’s also 3 years at a glance for both months.   This market report includes Ivins, St George, Santa Clara, Washington City and Hurricane, as well as outlaying areas.  It does not include “for sale by owner” or new construction that is not reported to the Washington County MLS.

In June 2022 our inventory of homes for sale started to increase. Inventory increased again in July and continued to increase in August 2022. There were 142 MORE homes on the market in August 2022 over July 2022.  Inventory of homes for sale doubled from August 2021 to August 2022.

Home sales have also declined for the last 3 years from August  2020 to August 2022.  In August of 2021, 514 homes sold and in August 2022, 371 homes sold.  That’s a 27.82% decrease in homes sold year over year.  So we had double the inventory and fewer homes sold year over year in August 2022.  All signs point to home prices dropping if this trend continues.

Median sold price for a home in the St George area in August 2022 was $510,000 and in August 2021 it was $440,000. Comparing this August to last August prices were not lower.  But….when you compare July 2022 to August 2022, median sold prices have dropped. In July 2022 the median sold price was $523,000 and in August 2022 median sold price was $510,000.  Looking back even further, median sold price in June 2022 was $565,000.  Three months in a row now, median sold prices have continually dropped.

There’s lots more homes to choose from for the buyers that have hung in there and are still in a position to purchase.  Homeowners that list their home for sale will likely notice their homes stay on the market longer. They may receive offers below listed price or buyers asking for help with interest rate buy down and closing costs.

In the St George real estate market there continues to be lots of price reductions as sellers realize the market will not bear the price they’ve listed their home at.  In months past, sellers were receiving offers ABOVE their listed price, that’s not the case now from what I’m seeing.

On the mortgage front, in an article posted by “Keeping Current Matters”, experts predict mortgage rates will stabilize. The article states “While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they’ll start to stabilize in the months ahead. According to the latest projections, mortgage rates are expected to hover in the low to mid 5% range initially, and then potentially dip into the high 4% range by later next year.”  Visit the article link for a helpful graph.

Below is the St George Utah and Washington County Housing Three Years at a Glance for August 2022.  More relevant, let’s look and compare the housing market in July 2022 over August 2022.  This comparison will give us a better idea what is happening “real time” in the St George area real estate market.

Market Report August 2022

 

St George Utah  three years at a glance August 2020 to August 2022-

There were 660 more homes listed for sale on the Washington County MLS in August 2022 over August 2020.  Between August 2021 and August 2022 there were 779 more homes listed for sale.  Inventory of homes available is 99.74% more than last year at the same time.  Inventory was significantly higher in August 2022 and sales dropped for the third year in a row.    In August 2020, 661 homes sold, in August 2022, 371 homes sold. The real estate market continues to shift towards a more “normal” market at this point.

Home prices are dropping in St George, there’s no denying that!  Home prices declined in June, July and August 2022.  Median sold price increase significantly during August over the past 3 years.  We’ll have to see how much home prices really drop over the next few months.

If you examine the chart you’ll see that the median sold price increased 31.78% from August 2020 to 2022. Median sold price in August 2020 was $386,982 and in 2022 it rose to $510,000.

Average days on the market decreased in August 2021 but has come back up in August 2022.  In August 2020 average days on the market was 60 and in August 2022 it was 35. Our absorption rate was 3.38 for August 2022. This is about what the experts say is a “healthy” absorption rate.

Because the Washington County UT housing market is changing at a fast pace, it’s important to see what’s happening from month to month.  Here’s a look at July 2022 to August 2022 so we can see what’s happened over the last 60 days.

St George Utah Real Estate Market Report July 2022

Available homes for sale -active listings- increased again for the month of August 2022.  With the increase in inventory, we are entering a “buyer’s market” where negotiating price and concessions is expected.  Homes for sale increased from 1418 in July to 1560 during the month of August 2022.

Average days on the market increased quite a bit, from 20 in July 2022 to 35 for August 2022.

Median sold prices declined from July to August 2022.  The median sales price decreased to $510,000 in August 2022. Sold prices decreased by 2.48% from July 2022 to August 2022. Median sold price in July was $523.000 and it fell to $510,000 in August 2022.

Coral Canyon home for sale

This is my featured listing for the month, located at 902 Cottonwood Wash in Washington Utah.  It’s in the fabulous community of Coral Canyon.  Take a look at more photos and home details – Great Home in Coral Canyon Washington UT

If you’d like more information on selling or purchasing a home in Saint George and surrounding areas please contact me anytime.

A Few More Real Estate Tips

 

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