Many people are concerned about decreasing home values. Today I’m sharing what you need to know about that.
Are St. George and Southern Utah home prices falling due to the pandemic?
Clearly, I’ve spent some time working from home (as many others have)…do the cap and flannel give it away? 😊
PERHAPS THE MOST IMPORTANT PART OF THIS VIDEO? The fact that it was actually shot in MARCH. The forecast has proven to be accurate so far!
People are concerned that home prices are decreasing, and it makes sense; cities are shut down, people are losing jobs. Over 300 thousand people are out of work in Las Vegas alone.
The only logical conclusion about the home prices is that they would FALL…but not so fast! Because they haven’t.
A “recession” does not equal a housing crisis, as we discussed in this video.
In 2001 values increased by 6.6% during a recession. The difference is that we had a housing crisis in the United States in 2008, not a health crisis that of course is affecting most industries.
Home prices are not currently falling in Washington County, primarily because we have an amazingly low supply of housing.
We just managed a multiple offer ‘bidding war’ on each of these 3 homes during this chaos!
Loads of home sellers are sitting on the fence “waiting out” COVID-19 which is only exacerbating the inventory issue, if not actually increasing prices in some areas!
In Washington County, during the crash of 2008 there was a colossal 8+ months of inventory across the county, and nearly 3 years in the ultra-high-end luxury market!
Today we only have 3.5 months’ worth. Your home value may decrease eventually; generally, it takes 8 to 12 months after a recession for home prices to be affected. But today they’re holdin’ strong.
One *exception is the nightly/weekly rental market which has been terrorized by cancelled bookings, but that’s a topic for another video.
As a matter of fact, I’m personally predicting that this pandemic could strengthen the real estate market as folks from big cities finally say “check please!” and flee their overpopulated urban prisons.
You may have seen the video I sent out on this topic on April 17th. You can “encore” it here.
Some folks thought I was crazy. Then USA TODAY released the piece below on May 1st….I win 😊.
We’re not in a housing or economic collapse, but the economy has most certainly been damaged because it’s been through a lockdown.
I believe St. George will come out of this better and more beautiful than ever! #stgeorgestrong
If you’d like to get a quick look at what your home may be worth visit http://www.stgeorgehomesearching.com/values.
If you have questions about your house or its value, grab 30 minutes to “ask me anything” right here. A great way to dispel some anxiety about your next housing move, even if it’s 6-12 months from now, is to game plan it now, totally obligation-free.
We’re wishing you a safe 2020!
-Jeremy & The Larkin Group