St George Utah Real Estate Forecast and Outlook 2024
The St George Utah real estate market projections for 2024 of house prices not coming down but going up are based on the market having appreciated about 6% in this last year of 2023 already, in a higher interest rate market.
In other words, prices are projected to not go down whatsoever based on two criteria: one, supply and demand and, two there is a lot of pent-up buyer demand.
On the first account of looking at buyer demand, there have been fewer buyers because of an inflation-heavy economy bearing higher interest rates. Supply would have to improve to make a difference, however. Because the numbers speak to it- that supply was not offering any incentive but with lower supplies, influencing prices to still go up! And what about supply for 2024 you ask? It is precisely because many homeowners are into their homes under a far lower interest rate, that they are encouraged NOT to sell and enter the market. So, even though interest rates are projected to go down, these are marginal descents not nearly approaching the 2.5 and 3% home loan rates that many are in under. Thus, home prices can't go down since there need to be fewer buyers than sellers and that is not going to happen "anytime soon". Inventory levels are low and will remain low, keeping home prices up.
On the second account because lots of buyers have been put onto the fence or unable to buy because of higher interest rates, when these come down, affordability will improve allowing these former pent-up buyers to move forward with their plans of buying a home. Thus, this increase in demand will keep prices appreciating, not depreciating.
Our outlook for homes for sale in St George Utah Real Estate market is such that we generally tend to parallel the rest of the market with a strong retiree influx base as well as attracting businesses that seek to be located more centrally in the western United States.