St George Year End Real Estate Market Report 2011
Posted by Paula Smith on Monday, January 23rd, 2012 at 3:07pm.The 2011 St. George year end real estate market report is finally finished. In this report, I'll illustrate the current conditions and compare to years past. I'll also take a look at area specific markets and try to determine a pattern. I'll also gaze into my crystal ball and offer my St George real estate market predictions to those readers who actually make it to the end of the report.
St George Real Estate 2010 vs. 2011
Take a look at this Yearly Market Comparison (Greater St. George Residential only). This shows that our sales are up 7.1% over last year and also shows that the median Sale Price is DOWN 5.4%. In a quick comparison looking at 2009 to 2010 we had an increase of 14% in sold homes and the Median Sale Price had dropped 11.5%. So, our sales are still up and our prices are still on the decline--however it IS getting better. It's also interesting to note the Number of New Listings in 2009 to 2010 was almost the same (with a difference of only 8 homes) and comparing 2010 to 2011 we are down 11.1% (a difference of almost 500 homes). This is good, we are still selling homes and our inventory is reducing, a formula necessary for stabilization.
Foreclosure Market Statistics in St George
The St. George Utah foreclosure market will continue to be a hot topic through the rest of 2012. It's sort of the steering of our proverbial market ship. So let's get into the facts: According to Jared Plewe of Title Guarantee (a local title company here in St George) foreclosures are on the downward trend for 2011 noting there were 997 LESS notice of defaults (NOD) filed in 2011 than 2010 (notice of defaults are step one in the foreclosure process). There were a total of 1165 Foreclosures in 2011 as compared to 1515 in 2010 (interestingly there were 51 in 2006). This is for ALL of Washington County for ALL property types. As of today (1-23-12) the MLS is showing 62 ACTIVE REO (foreclosure) homes, 57 PENDING, and 752 SOLD in 2011. So by my calculations this leaves about 25% of the foreclosed homes unaccounted for (banks holding inventory?)--there is a margin of error on these calculations (some of the sold homes will have been foreclosed from 2010 inventory). I did speak to a local bank who has been holding some foreclosed LAND. So many parcels were subdivided during the "boom" but by the time they came out of the process and were ready to be sold--St. George hit "bust". Land lots hit the inventory by the hundreds at a time when only a handful were selling.
On a brighter side, it does appear building is making a comeback and developers are on the prowl for some of these lots. They've been able to scoop up large parcels for a fraction of the price. Several builders are doing very well and selling out build jobs on entire subdivisions. This is wonderful for the economy as it is putting people back to work and buyers are enjoying the customization ability for new construction. St George Residential building permits were at: 368 pulled in 2011 as compared to: 284 pulled in 2010; 234 pulled in 2009, 261 pulled in 2008 and 867 pulled at the end of the boom in 2007 (an astonishing 2,048 pulled in 2004 which was our peek over the past decade). Still, the resale market will offer more bang for the buck. It's just getting more a more difficult to find the coveted "turnkey" home at an excellent price (without fierce competition). Builders are becoming competitive with their pricing, however they have scaled back on quality and have gone 2000 on us, with "back to basics" on finishing work (laminate, linoleum etc...). Hey we won't complain, laminate has come a long way! Besides, you can still select granite and stainless steel--you'll just pay a premium for it.
SunRiver St George Market Conditions
Sun River is a premier adult community in St George. We have inquires by the thousands from buyers who are considering relocation to Sun River. Although this is only a subdivision within St George, we treat it at a sort of "mini city" as the area has very different market conditions and cannot be compared with St George proper. Prices and comparables are in their own league, and can really on be compared to other homes in SunRiver. So let's take a look at what's going on: as of TODAY there are 57 ACTIVE homes (which has been fairly consistent over the past several months) 3 of these are Short Sales and 1 is a foreclosure (which means a total of 4 homes are of distressed status). This number is higher than years past, as typically there is only ever 1 or 2 homes of distressed status. This number is still considered EXCELLENT when compared to neighboring St. George, or the rest of the nation for that matter. 10 homes are pending. 107 homes were sold in SunRiver for 2011 as compared to 87 in 2010. I've got a couple of fabulous SunRiver homes for sale, be sure to check out my Sun River St George Real Estate page to find ALL MLS listed Sun River homes.
Crystal Ball Predictions, by Paula Smith RE/MAX First
Thank you for reading my blog, you're either a trooper for going over all of the above information or you just skipped it to read my predictions--either way--I'm humbled by the fact that anyone takes the time to read my report and I appreciate all of my readers and clients.
I believe 2012 will play out very similar to 2011. I think our inventory will continue to decline, and our Foreclosure activity will also stabilize. As we make our way through the inventory, the laws of supply and demand will surly kick in, which could make for an interesting possibility for a spike (appreciation). We have had a couple of these spikes on select homes and neighborhoods already, so it's not totally out of the question for this to continue. We DO have buyers, and the competition among them can be insane. The most sought after price range continues to be the $200,000 to $250,000 range, however take a look at the stability among most price ranges as depicted below (sold Residential Greater St George)
If you have a home in GOOD condition (free from needed repair) priced well, clean, offering neutral tones, and a marketing expert to list it (If you need a reference, consider the author of this post) then you've got a recipe to get your home sold quick. On a couple of my listings in 2011 we were able to achieve multiple offers resulting in: at or ABOVE asking price. For sellers who dare to test the market with higher prices, I'm sorry to say you will not achieve the results you desire. The days of "let them make us an offer" are out and buyers seem to gravitate to the more thrilling aspect of a lower price and jumping on the bidding wagon.
Thank you again to all of my clients who have helped me to elevate my career. Without you placing your trust in me, I would not have the business I've built. Each client is a pillar to my foundation and it will always be my intention to never lose sight of that.
It should also go without saying that I do not actually own a crystal ball, and my predictions are just that...predictions. This blog is my opinion about the market based on facts, knowledge, and good ol' history (and a wee bit of speculation). Cheers to an even better 2012! Contact Paula Smith of RE/MAX First if you are considering buying or selling. View all MLS listed homes on my website: http://www.stgeorgeutproperty.com/idx
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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