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
To download a
printable version of this report click
here.
