Wednesday, October 11, 2017

Five Things That Influence the St George Real Estate Market

st george utah real estate


St. George, Utah real estate is affected by many factors-- some that are a due to local dynamics and some due to the national real estate market at large. The St George Utah real estate market does well, even compared to similar markets in Utah, because of our mild weather, outdoor attractions, golf, low-crime rate, hiking, national parks, small town atmosphere, and many other benefits to the area. Many people vacation here or enjoy second homes here to escape the snow for half of the year. Often, once people have experienced the sunny feel and scenery, they fall in love and move to St. George permanently. The local St George Utah real estate market is also affecting by a recent trend of “flipping” houses, turning homeowners into investors that need a quick profit. However, in St. George, we have not had as much of an influx of working class population to stabilize the housing market. There are deficits in housing at some price ranges and overabundance in others.

St George Utah Real Estate Factors


As the city grows, we should see more of an overall increase in property values and real estate. In recent years, prices have climbed, but slowly. All in all, the St George, Utah real estate market has recovered. It is poised in the top ranked markets to continue to recover and improve after the 2008 recession. As we have experienced a continual improvement in the market, we have seen one of the most consistent improvements in comparable markets. Dropping interest rates are a big factor in this growth. Since 2012, the steady incline in the market has lead industry experts to predict more of the same growth. The St. George lifestyle, climate, and surrounding recreation attractions continue to attract growing crowds looking to make St. George home. Recently, the St. George, Utah real estate market has shown a two to three-month inventory yet, which continues the trend as a seller’s market.


Another unique factor to the St George, Utah real estate market is the Parade of Homes. The St. George Parade is the highest attended in the state. Every year for 27 years, at least 30,000 people flock to St. George from all over the state and region to visit and tour the Parade of Homes. These visitors take in the best that St. George builders have to offer, as well as experience the local scenery, and to escape the pollution and smog of larger northern cities. This “Parade effect” does not impact St George Utah real estate while it is going on, however, the Parade continues to sell the great aspects of St. George during the weeks and months after, by creating exposure to our different developments and scenic beauty. When people live in smoggy Salt Lake City or Utah Valley, and then come to view the best that St George, Utah real estate has to offer, it is likely that the impression of the visit will have lasting effects. These visitors often ending up buying secondary or primary homes here in the area after a Parade visit.


Another factor in the real estate market is somewhat speculative but worth in mentioning. Our current political climate could influence the behavior of buyers and sellers, as the economy changes in a variety of ways. There may likely be a stimulus due to tax cuts for some groups, and new infrastructure spending. However, many in the finance field predict uncertainty in the economy due to restrictive trade policies. These changes to the economic climate at large will undoubtedly affect real estate in the country. Changes to mortgage lending policies will have an effect as well. A political climate does not always create real estate changes, but many experts think it may in our current situation.

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