St George Utah Year End Real Estate Market Report 2010
Posted by Paula Smith on Thursday, January 6th, 2011 at 8:15pm.2010 St George Utah Real Estate Market Report
Here is the 2010 St. George Utah real estate market statistics and comparison against the prior year, also opinions and speculations of what 2011 may bring. This report will include the Greater St George area residential homes sold. Also, I will offer some insight and information for the St George Utah foreclosure activity.
First, take a look the graph below. It again supports my statements that the St. George real estate market has remained steady. We've actually done more in sales for 2010, but our numbers often remain rather consistent--however the prices have declined (we'll get to that next).
Have Home Prices Gone Down In St George?
Now let's take a look at the actual prices for homes sold in St. George. This is where our price decline is evident; although on the bright side, St George real estate is faring better in comparison with national averages.
Comparing December 2009 with December 2010 we have a price decline of about 12.4%. Similar comparisons:
November 2009 to November 2010= decline of about 12%.
October 2009 to October 2010= decline of 24%
September 2009 to September 2010= decline of 15%
August 2009 to August 2010= decline of 5.6%
The number one sold price range for 2010 (residential Greater St. George) was $225,000 - $249,999.
St George Utah Foreclosure Activity Report
My number one call..."I'd like to buy a foreclosure, so I can get a better deal". My reply..."foreclosures do not always equal good deal". Foreclosures CAN offer a decent price, so motivated sellers are forced to compete with these prices which in return means that a motivated seller can offer just as good of a deal--if not BETTER! I'll get to that article next for those of you who want to read more about purchasing a foreclosure vs. traditional sales and the advantages.
So for those of you statistical number chasers...here we go!
For the year of 2010 (Greater St. George residential) there was a total of 2,280 homes SOLD. Of that number a total of 1,263 homes sold were NOT of distressed status. This means that of the 2,280 sold 1,017 (or 44.6%) of our sold inventory WAS of DISTRESSED status (Short sale or Foreclosure). This is a big number, however the fact remains that even as high as this number is, our average decline over last year was about 12% lower. If the foreclosure market was such a PHENOMIMAL deal, this decline would be significantly higher considering the fact that close to half the inventory sold was sold (or third party authorized) by a bank. (Repeated phenomenal deals would essentially drive down the prices and lower our overall totals).
My opinion for 2011: Keep in mind, this is only my opinion and speculation based on what I see and what I know. I believe that the market will continue to a mild decline, similar to the 12-15% we have experienced over the past 2 years. I believe that interest rates will go up faster than prices will come down which will wipe out any possible small drop in property values (a 1% increase in interest rates would be about the same as paying $25,000 LESS for a home--based on an average home loan of $225,000 @5% interest payment= $1207 and to achieve that same payment with a 6% loan you must only finance $201,000).
So for those waiting for the market to hit "bottom" I fear will be left sitting on the fence only realizing they should have jumped when rates were low. I do not recommend purchasing if you do not intend to own the home for less than 5 years. If you are purchasing a long term investment, then it makes sense as historically, home prices always go up after hitting a low. I do not recommend "flipping" at this time. Sure, there are a few deals out there that will support a purchase, rehab, and sale for profit--but those deals are few and far between. Also, with the more stringent lending guidelines it's easy to swallow up a small profit with lender required repairs and additional appraisals (for FHA purchased flip sold before 90 days). There is little room for error, and even smaller room for profit. Buy low and hold, sell once the market rebounds (which could be another 5-10 years).
Are you searching for a new home with a VIEW? Check out this new listing in Lakota Ridge. The model is built and available for viewing. Prices starting at $215,000 for a 1600sqft home.
Wishing you the BEST for 2011. Please remember, a Buyer's Agent works to achieve the BEST possible price for the BUYER--a listing agent works to achieve the best possible price for the SELLER. A Buyers Agent will NOT cost the BUYER ANYTHING. Please utilize the services of a buyer's agent who understands the market and who can offer guidance to their client. If you would like buyer representation to purchase your next home, Contact Paula Smith-St George Utah Buyers Agent specialist! Dedicated to providing an unprecedented level of service and exceeding Client expectations.
Thank you for reading, and share your thoughts below in the comment section. If you want other reports, just ask! Paula Smith Re/Max First Realty www.StGeorgeUTproperty.com
"Dedicated to providing an unprecedented level of service and exceed Client expectations" Contact Paula Smith today if I can be of assistance.
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Share3 Responses to "St George Utah Year End Real Estate Market Report 2010"
YOU CONTINUE TO BLOW ME AWAY WITH YOUR REPORTS...YOU ARE ALWAYS RIGHT ON..........
Posted on Friday, January 7th, 2011 at 11:20am.
Good info on flipping/forclosures.very informative report.. now looking for land instead of resale.[] will be out on Tuesday, Jan. 11 to continue our search and review of Coyote Springs and Green Springs in Washington.
Posted on Saturday, January 8th, 2011 at 5:58am.
Paula Thanks for sending this new information..we have been tracking real estate in the STG area for about 10 years.We farm out here, in the last 12 months we sold our herd of dairy cattle, so we now have more free time in the winter. I like the Lakota Ridge area,like Ennce.. have looked at many of their homes and have been on the Lakota development several times...We like the location but DON"T Like the homes that face the road..way too busy...do you have information on what lots might be left to buy and if a large premium is still required to move back towards the hills. also I can't remember the HOA fee...we very much like the plan you linked to it's about the size we have been looking for all along. We also had alot of interest in Anthem Estates and Suncrest ? In Ivins. What is your opinion of the best value for a 3BD/ 2or 3 Bath out there now...we should be making a trip out within the next 60-90 days before the crops go in Thanks Susan
Posted on Friday, January 7th, 2011 at 10:37am.