Any comments on the southern Utah real estate market?
I am about to buy a foreclosure in st george utah. I have a hard time finding alot of information on the southern utah market. I have followed it for 5 years but it does not fit into the trends of any other major city nearby. It is a whole seperate market from salt lake city. It is close to a phoenix or las vegas but it has very few jobs and econmy is so different. About 5 years ago houses were available for cash types prices with many under 100k. Then the prices went over 400k, now they are back in the 225-250k range.
I have watched anf there are more foreclosures coming but the majority are upper end 500k+ custom homes. I only want to pay 250k or less preferrably 2225k or less. With few jobs will the market fall alot more. Will land prices ever fall? Most land is BLM so developable land is a preminum. There is 37 year supply of lots but prices remain over 100k for .25 acre plus impact fees are over 20k some places over 30k to build with strict restrictions so building new is out.
Three of my neighbors who were renting and waiting like us re buying this month as well so is it time?
I just am curious if anyone besides a local realtor who is trying to sell has any views of southern utah.
2 Responses
RM
11 Feb 2010
*9w3d* ~till ind
11 Feb 2010
There is no way to know. My husbands family is north of you in Cedar City. I know the market there is iffy. It’s a smaller place, with little work.
Somewhere like St.George should hold steady. I could see things taking another dip though. It’s really the toss of a coin type gamble. Depending on what happens in the next 12 months or so with this mtg mess, it could go either way.
I would look at it like what happened to the Vegas market. Mid price was 150′s, then within 1 year nearly trippled, then within 1 more year are less than the 150′s they were to start. Over the course of approx. that same 5 years you’r reffering to. We were living there when that happened, and left right when the market blew up in Spring of 04.
That would be the only thing I’d be worried about, is the odds of it dipping lower than it is now. Because thats more than possible, as I’m sure you know.
Sorry I’m probably absolutely 0 help, but those are my thoughts. Pick carefully. G’luck.
I work for a lender and we do a reasonable amount of business in Utah. I must say that I’m as confused by the trends as you are. Some areas are still rising, some are declining, some are stable. It amazes me that homes and land out there are selling for so much.
If the area you’re looking in has more than a few foreclosures and is losing jobs, values will probably keep going down as people move away and are desperate to sell. If you have a set price range, just go in and bid that amount on a house. You may just find that desperate seller who is willing to give you your price.
Your best bet is probably to call up a realtor to have them give you a diagnosis on the neighorhood though.