Reporting Elevated: The State of the Real Estate Market in Southern Utah and Beyond By Summit Sotheby’s International Realty
2021 proved to be a historic year in just about every business sector. From the “great migration” to record-breaking real estate transactions across the United States, this past year is something we are just now starting to fully quantify. At Summit Sotheby’s International Realty, we aim not to follow the curve but to create it, and in the process, redefine the real estate industry, bringing a luxury experience to each and every one of our clients regardless of area or property price point. One of the ways we go above and beyond for our clients and our community is through our consumer reports and market commentary. In this special feature, we’ll discuss two major drivers in Utah’s record-breaking real estate market: the explosive growth of southern Utah and the emergence of the millennial property buyer.
All Eyes on Southern Utah
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We are often asked, “What does this demand and competitive real estate market mean for St. George and for my property?” To appropriately answer this question, we take a look at the data and compare various pieces of information: price per square foot, days on the market, and even the amount of inventory available. In 2020, the average price for a home sold in Washington and Iron Counties was $355,624. By the end of 2021, that number had risen to $577,930, a 47.6 percent increase from the beginning of 2020. When analyzing the data in regards to days on market (a term used to indicate the number of days a property is available for sale before it is sold), we found the following: at the beginning of 2020, the average property was listed for sale for sixty days, but during the summer of 2021, that number dropped down to fifteen days. You can see that
properties are selling faster and for higher prices than in 2019 and 2020. The takeaway is that southern Utah is no longer a well-kept secret, and sellers are benefitting from high buyer demand and low inventory.
Millennials Change the Face of Real Estate It is no secret that we’ve been living through historic times and events, many of which have been fueling the competitive landscape of Utah’s real estate market. But there’s one event that will change the face of real estate well into 2042: the greatest shift of wealth in human history. Baby Boomers have amassed an estimated $70 trillion and have begun transferring (shifting) that wealth to their children and grandchildren, the millennial generation. These millennials are now entering the housing market with not just strong purchasing power but strong convictions of what they want their lifestyles to look like. Ties to community, health and wellness, authenticity, and overall aesthetic are driving decision forces behind this generation. They purchase differently than their parents and grandparents and are willing to make cross-country moves to locate their ideal property.
...It’s clear that lifestyle, affordability, access to higher education, and four seasons of recreation are putting St. George at the top of the list for many buyers across the country.
42 Southern Utah Business Magazine :: Summer 2022
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Southern Utah continues to make headlines, not just locally but nationally, as demand for our area’s properties remains at an all-time high. St. George and the surrounding communities are experiencing explosive growth, with new construction neighborhoods working to keep up with the pace of buyer demand. In fact, the Kem C. Gardner Institute has released data projecting that Washington County will see a 155 percent population increase over the next forty years. With new residents and second home purchasers arriving from major metropolitan areas such as Chicago, Los Angeles, and Seattle, it’s clear that lifestyle, affordability, access to higher education, and four seasons of recreation are putting St. George at the top of the list for many buyers across the country.
Summit Sotheby’s International Realty has been studying this anticipated trend for the better part of a decade, which means our sales associates better understand how to market and sell their clients’ properties to these new buyers than the competition. While the real estate industry as a whole relies on the local MLS and sites like Zillow, Summit
