Market Summary Report Year-End 2014

2014 was an interesting year for Southern Utah’s real estate market and I firmly believe that there are some valuable trends to pay close attention to as we enter the 2015 market. Interest rates continue to be artificially low enabling buyers to afford almost twice the home that traditional average interest rates would secure. This is also very helpful to sellers as the pool of available buyer’s increases at any price-point.  Our economy seems to be in a continued rebound… perhaps even robust. The Fed seems to remain focused on keeping the economy strong… how long can this last and what opportunities does this present in the Real Estate market in Southern Utah?

While no one can predict the state of the economy we can pay attention to and capitalize upon real estate trends regardless if one is buying, selling or both in the greater St. George area.  In mid 2014 I openly discussed with my client’s that I saw our overall median priced homes to increase at a modest 4-5% which is a decrease from 2013’s 10%.  This has come to pass as our median home sales price was up 4.19%.  Our median home price came in at $209,900.  Our average market time, the time it takes to sell a home, hovered between 83 and 110 days.  While this can be taxing for an anxious seller, it’s quite healthy and reflects that there is a “right” buyer out there for most homes but they might not come along in the first few weeks of the listing. For buyers on the other hand, while it seems like there’s plenty of time to weigh out decisions…but the more aggressively priced home will vanish with any procrastinated decisions. This can lead to what I call “home-heart-break” for those who, after seeing many homes, came to decide upon that perfect home that now isn’t available.  There are some specific and safe strategies that can avoid this… call me for details at 435-703-4041.

Our “Sold to List” ratio remains strong… between 95-96%. This most likely reflects seller’s hanging tough on prices at first glance. While this is true in many cases where seller don’t have to sell I can tell you in many cases there are sellers that need to sell and would consider all reasonable offers.  Great deals are rarely found… they are negotiated. This is the biggest mistake I see eager home-buyer’s making in today’s age of computer aided searches. They spend way too much of their time scouting for a great deal based upon the listing price rather than actually seeing who needs to sell and what they are willing to sell for… which is rarely evident in the listing price. In order to keep abreast of these unique buying opportunities, I devote a lot of time and resources pre-viewing homes coming on the market, tracking those that didn’t sell for a particular reason and those that are for sale by owner (FSBO’s) with individual client’s needs in mind.  My concierge clients get updated several times per week on these as well as receive comprehensive “hot-sheets” matching their specific criteria… again call me for details at 435-703-4041.

In summary I’ve noticed a drastic increase in interest towards the last months of 2014.  I call this the “pulse” of the market and it’s based upon actual buyer inquiries, showings and closing trends. If this trend continues, which I think it will, we will no longer have the luxury of pondering over submitting offers.  Those that do so will be left in a cloud of dust wondering what happened to their home that they wanted. Multiple offers will be on the increase, which in 2014 were rare. Seller’s will increasingly be tempted to price their homes too high in hopes of capturing a much higher price, when in reality they will only diminish their chances for abundant showings and possible multiple offers. Multiple offers, beyond a shadow of a doubt, bring in the highest price.

With a strong economy and all factors indicating economic growth I foresee an 8-11% increase in our real estate market for 2015.  While past performance can never predict future performance and I don’t recommend short-term real estate investing there are some occasions for sophisticated investors to capitalize upon.  For the average consumer the greatest investment opportunities in Southern Utah come from the potential tax credits that follow home-ownership and the incredible leveraging that real estate ownership provides… not to mention that the average home-owner pays less in their mortgage than they would be paying in rent right now.  Unusually high demands for rentals make Southern Utah an investor’s paradise.

If you or someone that you know is interested in buying or selling a property in Southern Utah, please contact me by phone at 435-703-4041, or by email at dddiegelman@gmail.com. You may also search the web for all listed homes on my new website at www.ZionWest.com which is chalked full of valuable links and information. If you wish to download my app on your smart-phone simply text E1323 to 32323 even if you just happen to find a listed property while driving about. 

By the way… I’m never too busy for your referrals!

©Dave Diegelman 2015 all rights reserved

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