As we begin 2019, we’re still in a seller’s market, but as we move forward, buyers will have more homes to choose from and more leverage.

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What does the future hold for our 2019 real estate market? 

Experts predict that this year will be better than 2018. This is good news considering 2018 was a great year to begin with. Specifically, 94% of the top analysts in the country predict that home prices will rise nationally, 4% predict that they’ll decrease slightly, and 2% predict that they’ll stay the same.

On a local level, the NAR predicts that average home prices in Utah will rise by 3%. Basically, this means if you own a $300,000 home, it will appreciate by $10,000 by the end of the year. 

Right now, the average 30-year fixed mortgage rate stands at 4.875%. Although this is a slight increase compared to where rates were a couple of years ago, they’re still historically low. When you consider that rates were as high as 21% in the early 80s, even if current rates rose to 5%, homes would still be more affordable now than they’ve been at any point in the past 30 or 40 years. This means if you’re a renter, now’s a great time to buy a home and start building equity, especially since rent prices have been increasing. 

Experts predict that this year will be better than 2018.

We have just under 1,500 homes for sale in St. George, and our absorption rate is roughly 3.5 months. Generally, this means we’re still in a seller’s market, but once you get above the $400,000 range, buyers have more leverage and conditions are more balanced. 

St. George is one of the fastest-growing cities in the nation, so our numbers should be higher than the national predictions. It might seem like we’re building homes like crazy, but we’re also selling homes like crazy. Nationally, we’re below where we need to be in terms of inventory, which is why it’s also great news that the number of homes coming on the market is expected to increase. This will give buyers more homes to choose from and more leverage. 

If you have any more questions about our St. George market moving forward in 2019 or you’re thinking of buying or selling a home, don’t hesitate to reach out to us. We’d love to hear from you.