St George Real Estate Update May 2022- The St George real estate market may be cooling off slightly with higher interest rates and less buying power for anyone needing a mortgage. I’ve got some interesting statistics on the St George real estate market. Below are statistics for the last 3 years so let’s take a look. This report will examine the local housing market in May 2022. We’ll look at the most current information regarding housing prices and inventory of homes for sale, year over year for 3 years. This market includes St George, Washington, Hurricane,Santa Clara and Ivins as well as outlying areas.
One of the main issues we’ve had over the last 2 years is low inventory. The number of homes for sale in the St George real estate market has dropped consistently over the last 3 years. In May 2020 there were 1539 homes listed for sale and in May 2022 there were 838. There were 711 fewer homes on the market in May 2022 over May 2020, BUT there were 328 more homes for sale during May 2022 than May 2021. So inventory may be creeping up…we’ll have to see what happens in the next few months.
The number of homes sold was down in May 2022 over May 2021. Sixty nine fewer homes sold in May 2022 versus May 2021. More inventory and fewer sales may indicate a shift in the St George real estate market for 2022.
The Median sold price for a home in the St George area in May 2020 was $330,500, in May 2022 it jumped to $534,000! That is a 61.57% increase in median sold price over a two year time span.
Two things I’ve noticed this month so far; homes are on the market longer and lots of price reductions. Many sellers have reduced their price within 7-10 days of their home being listed. The market may be correcting itself, due to higher interest rates and some buyers dropping out of the market. When demand for homes decreases, above list price and multiple offers will likely stop.
Realtor Magazine posted an article today that predicts buyers are gaining leverage. In the article, it points out “Fewer people were searching for “homes for sale” on Google during the week ending May 21, down 10% from a year earlier. Home tour activity is falling slightly, mortgage purchase applications are down 14% compared to a year earlier, and, while it’s still uncommon, more home sellers are dropping their asking prices.” Take 5 minutes to read the article, it’s full of great information on the current real estate market in the county.
This is the St George Utah and Washington County “Three Years at a a Glance” housing report for May 2022.
Here’s three years at a glance from May 2020 to May 2022-
There were 711 fewer homes listed for sale on the Washington County MLS in May 2022 than in May 2020. Inventory of homes available to purchase decreased 46.19% from 2 years ago. Inventory is still lower than in 2020 but has improved over 2021. We have much less Inventory of available homes from 3 years ago, but the number of homes sold was only slightly lower. Seventy two fewer homes closed in May 2022 than May 2020. So roughly the same number of homes is selling, there’s just not as many homes for buyers to choose from. Home sales varied slightly year over year but inventory was vastly different during the same time frame.
In May, home prices continued to rise in the St George real estate market. Median sold prices have consistently risen over the past 3 years. If you examine the chart you’ll see that the median sold price increased 61.57% from 2020 to 2022. Median sold price in May 2020 was $330,500 and in 2022 it rose to $534,000.
Average days on the market decreased dramatically too, from 55 in May 2020 to 17 in May 2022. Our absorption rate was 1.71 for May 2022. This remains a much lower figure than the experts say is a “healthy” absorption rate.
I hope you find this information useful, our real estate market is definitely a moving target. Feel free to contact me if you have any questions
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