ST. GEORGE, Utah — There are plenty of for sale signs on homes in southern Utah, but can people actually afford to buy them?
"It's really unaffordable for a lot of people, and it's a bummer," said Jeff Watkins, who is co-host of the local 435 Podcast in St George and helps compile local housing statistics as a consultant for realtors.
Watkins said that for people who want to buy a home in St. George, it remains a tough situation regarding affordability, at least on the surface.
"When you look at certain data points, it's like Washington County is about 10 years behind Summit County, and the median home price in Summit County is over $1 million. And so if we keep trending that way, it's going to continue to become more unaffordable," he said.
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But Watkins claimed things aren't all doom and gloom for homebuyers and that what’s currently underway in the market is that word heard over and over again: unprecedented.
"The interest rates during COVID were unprecedented. Home prices were unprecedented. What people were paying over asking price was unprecedented," Watkins explained. "And so I think we're still recovering from that. More in a good way. I think we're becoming, we're moving more into a healthy market for both buyers and sellers, where you can make informed decisions. Where you don't have to pay $50,000 over asking price."
The absorption rate in St. George, which is basically how long it will take to sell all the current inventory available, is over 40% for the year. That means that on the seller side, it means that your house probably is going to take a little bit longer to sell.
"For buyers, it means that you got a bunch of choices with all the inventory that we have," Watkins added.
What about those just starting out? Watkins noted there continues to be a concern over someone growing up in St. George not being able to live in the city as an adult.
"Some real estate agents that will say, 'Hey, any time is a good time to buy,' I don't necessarily buy into that," Watkins shared. "I would say be as informed as possible. Be as strategic with money as possible."
He added that it's probably more affordable to rent right now than it is to buy.
"But if you're a young person and you love St. George, you grew up here and you want to stay here, you should probably fight to get into a home."
