January 2018 Washington County Real Estate Market Video Update
Summit Sotheby’s International Realty has released information about real estate markets in Washington County for the previous month. These market reports focus on units sold, median sales price, days on market and the inventory of homes for sale.
Washington County – Single Family Homes: Active inventory was down 25% from 2017 with 755 units on the market and down 19% from the previous month. The median listing price was just under $400,000. The average days on market was down 20% from 56 days in 2017 to 45 days in 2018. The median sales price was $300,000. The averages for units sold in the month of December decreased 5% for units sold year over year and decreased 9% month over month with a total of 272 units sold.
Washington County – Condominiums: Active inventory was down 26% from 2017 with 105 units on the market and down 18% from the previous month. The median listing price was just under $220,000. The average days on market was up 18% from 28 days in 2017 to 33 days in 2018. The median sales price was just over $180,000. The averages for the month of December show an decrease of 30% for units sold year over year and 26% increase over the previous month with a total of 49 units sold.
December 2017 Washington County Real Estate Market Video Update
Summit Sotheby’s International Realty has released information about real estate markets in Washington County for the previous month. These market reports focus on units sold, median sales price, days on market and the inventory of homes for sale.
Washington County – Single Family Homes: Active inventory was down 20% from 2016 with 894 units on the market and down 8% from the previous month. The median listing price was just under $390,000. The average days on market was down 15% from 62 days in 2016 to 53 days in 2017. The median sales price was just over $310,000. The averages for units sold in the month of November decreased 2% for units sold year over year and decreased 9% month over month with a total of 273 units sold.
Washington County – Condominiums: Active inventory was down 26% from 2016 with 122 units on the market and up 2% from the previous month. The median listing price was just over $210,000. The average days on market was down 13% from 31 days in 2016 to 27 days in 2017. The median sales price was just under $180,000. The averages for the month of November show an decrease of 23% for units sold year over year and 23% decrease over the previous month with a total of 34 units sold.
St. George City as seen from the Dixie Rock/Sugarload formation at Pioneer Park, St. George, Utah, July 2016 | Photo by Mori Kessler, St. George News
ST. GEORGE — Real estate development in Washington County is trending toward positive growth but still faces challenges such as rising construction costs and prohibitive impact fees.
Thursday’s St. George Area Economic Summit included breakout sessions previewing residential and commercial real estate development in Southern Utah. The presentations highlighted how population growth, vacancy, regulation, construction costs and inventory are shaping the area’s real estate landscape.
Population and inventory
As Utah leads the nation in population growth, Southwestern Utah leads the state in growth, according to the Kem C. Gardner Policy Institute at the University of Utah. Since 2010, the county has grown by 22,000 people and is projected by the Governor’s Office to reach a population of 200,000 by 2020.
Southern Utah Home Builders Association Executive Officer Mari Krashowetz speaks at the 2017 St. George Area Economic Summit, St. George, Utah, Jan. 13, 2017 | Photo by Joseph Witham, St. George News
“I will tell you it’s been my experience looking at some of the population projections provided by the state, they’re almost always less than what reality is,” Washington County Board of Realtors Vardell Curtis said.
With the spike in population growth, housing vacancy rates have shrunk to their lowest numbers in decades, with rental vacancy at less than 1 percent and single family homes at around 3 percent for the St. George area, according to research by NAI Excel.
The vacancy rates are exacerbated by a relatively low supply of inventory. As of the third quarter of 2016, housing supply was projected to last only 36 months.
“We definitely are running into a shortage, and that can bring up the price of homes,” Southern Utah Home Builders Association Executive Officer Mari Krashowetz said.
Housing and employment
“Unemployment has dropped to 3.2 percent in Washington County. That is pretty much full employment. Anybody that wanted a job has a job,” Curtis said.
Residential real estate is currently ripe with buyers, creating an ideal seller’s market.
“Housing is key to continued economic development,” Krashowetz said. “When we build a thousand average single family homes in our community that creates just under 3,000 jobs and generates about $111 million for government – local, state and national.”
Housing will need to keep pace with some of the major economic developments in the area, including the expansion of Dixie Regional Medical Center and Dixie State University. Thousands of jobs are expected to be added to the economy as a result of these developments.
Regulation and construction costs
“When the 115th Congress convenes, there are some things that need to happen specific to real estate,” Curtis said. “Specifically, policy makers need to reform the regulatory process.”
Chief among regulations that create prohibitive real estate development conditions are impact fees.
Such fees range from $8 to $10 per square foot for commercial real estate projects.
“It feels like a tax on the landowners … they can’t sell the land for the price they really want to sell for because new construction doesn’t pencil when you fill in that big chunk of impact fees,” Andrew Sorensen, director for Cushman & Wakefield Commerce, said.
Getting these fees reduced will require legislative action.
Krashowetz mentioned President-elect Donald Trump’s claim that 25 percent of home building costs are due to regulation, a number he said he’d like to see reduced to 2 percent.
Construction costs are projected to go up as worker’s wages increase and immigration laws tighten.
“Those considering new construction, again, be aware that there may be some additional costs, especially if ‘the wall’ gets built and so the trades go back,” Curtis said in reference to Trump’s proposed wall along the U.S.-Mexico border.
Projects in the works
Despite looming challenges, several major commercial and residential real estate projects are already under construction or slated to begin this year.
On the residential end, some of the bigger projects include:
St. George Downtown City View, a $30 million mixed-use development, including a hotel, 100-unit apartments and 10,000 square feet of retail.
300 new twin homes and new Hampton Hotel at SunRiver.
120-140 condos and 30-40 homes by Bloomington Country Club.
244 multi-family apartment units in Rivers Edge at 501 S. 2200 E.
Some large commercial projects are already in the works.
3,600-acre area off of Interstate 15 exit 2. This is a 20-year State Institutional Trust Lands Administration project that includes residential, resort, commercial and education developments.
Southern Utah is Changing Fast….. Major new multi million dollar projects are either underway or about to break ground across the region, including the largest construction project in St. George’s history, a massive new hospital expansion.
New housing developments are pegged across the St. George region, with more move-ins expected to join the already fast-growing local population in developments downtown, in the Little Valley and Washington Fields areas, near Tonaquint and Green Valley and elsewhere.
New commercial development is expected to give residents and visitors alike more places to stay, shop and recreate, with large-scale shopping centers moving in at places like the new Mall Drive Bridge in St. George and along south River Road, with multiple new hotels and permits taken for new buildings along Red Hills Parkway.
Real estate experts anticipate more of the same in 2017, with new commercial space in the works along south River Road, along State route 9, in the Sun River area and elsewhere.
In Cedar City, a new Deseret Industries is set to open this spring on Providence Center Drive. Other major commercial projects include a Sportsman’s Warehouse on south Main Street and a Ross Dress for Less also on south Main.
Lines of Transportation……A series of new projects are planned to both accommodate more vehicles and encourage more residents to use bikes, buses and other forms of transportation.
The Utah Department of Transportation is nearing completion of a mile-long road widening along Interstate 15 through St. George, including a new underpass near Mall Drive that should ease congestion at two nearby interchanges when it opens later this month. Once that is complete, the agency will turn its attention further south, with additional I-15 lanes scheduled to be built between the Dixie Drive and Bloomington freeway exits. The City of St. George is also looking to add lanes to ease congestion around the I-15 corridor, with a widening project scheduled to go in between 900 East and 1000 East along St. George Blvd to ease traffic along the nearby freeway interchange and intersection with River Road and Red Cliffs Drive.
New Schools and Education Buildings……A number of new schools buildings and other education facilities are expected this year as well. Construction continues on the new Dixie Applied Technology College building, a $45 million facility easily visible from much of St. George atop a black mesa west of the city center.
Dixie State University officials are hoping to earn state funding this year to move forward with a new health and human performance center and have additional plans for new student housing and parking facilities.
At Southern Utah University, officials plan to break ground this summer on a $17 million business building at the site of a parking lot adjacent to the Sharwan Smith Center along University Blvd. Source: Spectrum
About Washington County, Utah Placed amidst a scenic backdrop of red cliffs and majestic mountains, Washington County is home to many beautiful and vibrant communities. Locals enjoy the recreational lifestyle the area offers, with world-class golf courses, scenic biking and hiking, thrilling rock climbing, the world-famous St. George Marathon, and incredible ski slopes just miles north. But the most attractive characteristic to tourists, snowbirds, and permanent residents alike is the pristine year-round warm weather and favorably low humidity.
Washington County Monthly Market Reports Want more in-depth information? A property evaluation? Connect with your local Summit Sotheby’s International Realty sales associate for up-to-the-minute market information and expert knowledge and experience.
