In 2017, year-over-year home sales in the St George real estate market declined. Inventory available for sale experienced a decrease as well. That means that homes on the market sell pretty quickly. If you’ve been dragging your feet about purchasing a new property, let me explain why 2018 should be the year you buy a St George home.
Buying a St George Home in 2018
Rising Sale Prices
Unless you’ve been living under a rock, I’m sure you’ve noticed that prices have gone up dramatically over the last couple of years. The majority of St George homes that sold in 2017 fell within the $250,000 to $300,000 price range. However, the median sale price for the year came in at $309,000. Experts believe we’ll continue to see prices rise in 2018. However, they won’t be the crazy increases we’ve seen lately. We should expect a more moderate gain. Take advantage of lower prices at the beginning of the year, if possible. Most likely, you may be paying more as the year goes on. But, if you’re not quite ready yet, remember that prices shouldn’t be outrageously more by the end of the year.
Rising Interest Rates
For several years now, the Federal Reserve kept interest rates at historic lows. However, modest economic gains prompted them to begin increasing rates over the last couple of years. While we most likely have seen the last of the 3% interest loans for now, Wells Fargo reports a 4.375% interest rate for 30-year fixed-rate mortgages. Ten years ago, they were just over 6%. In 2000, they were over 8%. Today’s buyers still benefit from historically low rates. Financial experts predict that we may see rates hit 5% by the end of 2018. The higher your rate, the more you pay to borrow money for your St George home. So, the sooner you can purchase a property, the more likely you’ll be able to utilize a lower interest rate. Now, higher interest rates aren’t guaranteed. But it appears to be the trend for 2018 and possibly beyond.
If you’re waiting for more inventory to hit the St George real estate market, you could be waiting for a while. St George sits squarely in a seller’s market. While this may get some sellers to go ahead and list their home this year, it might not be enough to make a dent in inventory levels. If you’re interested in downsizing, upsizing, or just buying your first home, you may not want to wait for long. Otherwise, your dream home may be snatched up by some other buyer.
Whether you’re a first-time homebuyer, a military veteran, or someone looking to dip their toe back into the St George market after bankruptcy, 2018 may be your year to buy a St George home. When you’re ready to start looking, contact me. I’ll be happy to show you what’s available.