Yes, little ‘ol Utah! We came in #5 as strongest housing markets in 2018, not just so far, but projected throughout the year. According to USA Today. “Businesses continue to flock to many parts of this state, making for a booming housing market that’s set to continue into 2018. The Provo/Orem region was recently ranked as the best-performing city by the Miliken Institute, thanks to a robust high-tech sector and broad-based job and wage growth. In Salt Lake City, the median home price averages $360,000, and the market is predicted to grow 3.2 percent in 2018.”
But that’s Provo, what about our little neck of the woods? The Saint George area home prices have gone up nearly 10% over the last 12 months. Many will predict they will rise another 4% by the end of the year. This is great growth, but without a strong job market behind it, it could lead to a bubble, but that’s exactly what we’re avoiding. Because our job market continues to be strong, home prices are supported and more people are finding and buying these homes. It all comes down to lower inventory, great jobs, and higher priced homes. This is the perfect combination for a great housing market.
But does that mean buyers are having problems finding homes? Not necessarily. The average home price is around $390,000 – $420,000 with about 300 properties on the market. This is also about a 3-month absorption rate, which indicates a great market as well. This means that if all new listings stopped as of today, it would take about 3 months for all of them to be sold. A balanced market is about 6 months so a 3-month rate indicates a living seller’s market. Over 1000 listings have closed in the last 6 months alone, which also indicates a healthy market.
So all these numbers and stats; what does it really mean for buyers and sellers? Well, for sellers, it’s a great market to sell and if you’re considering waiting until spring... well, here we are. Today is the first day of spring so I wouldn’t wait much longer. Buyers are out there and if you want to close by the end of the school year, now is a great time to get the home staged and listed for the best price because buyers want to move at this time too.
As for buyers, the $200,000-$300,000 price range is the most popular and the most affordable for most families. This is also where the homes close the fastest so it’s important to have a dedicated buyer’s agent on your side to help you navigate the purchase and sale process to get the best deal and terms. Will there still be inventory in summer? Absolutely! But you’re more likely to get a better deal sooner rather than later because prices are just going up.