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Posted Apr 19, 2021, 1:49 PM
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As Metro St. George Approaches The 200,000 Mark, It Is Once Again Grappling With Explosive Growth
Why is southern Utah like Disneyland? Despite long lines, high prices, people flock there. By Ashley Imlay, For the Deseret News April 16, 2021 - https://www.deseret.com/utah/2021/4/...andemic-growth
Homes under construction in St. George is pictured on Thursday, April 8, 2021. Jeffrey D. Allred, Deseret News
In one Utah city, there are just 200 homes for sale but 2,000 real estate agents as an exodus of out-of-staters and others who want to get into their first home battle for a space to call their own.
It’s not unlike the housing market throughout many communities in the Beehive State, where buyers often need to offer between $20,000 and $50,000 above asking price to even get their bid considered.
But the situation in St. George — a city nestled among red rocks sitting on the southwest edge of Utah — can be likened to Disneyland at spring break.
Long lines, inflated prices and fatigue, but people are willing to sweat it out to be there, a hop, skip and jump away from Zion National Park, Lake Powell and other attractions.
An estimated 50% or more of incoming residents hail from California and other states. They are lured to the area after the pandemic made remote work common “because although our cost of living and our house prices are rising, they’re still much lower than in California,” said Jordan Hess, vice president of member services and public policy for the St. George Area Chamber of Commerce.
City and business leaders say they’re trying to ensure the area keeps its explosive growth sustainable as the desert town grapples with water shortages and other infrastructure limitations...
...Within the past six months, nearly 1,200 houses have sold with a median price of $420,558, according to a report by the Larkin Group real estate agency. Between 2015 and 2019, the median home value was $286,000, census data states...
...St. George natives who are young singles or newlywed couples expressed frustration that people from out of town are partly responsible for pushing home prices higher and eventually “it’s going to put younger families out of this area because they don’t have the income sources to support that living situation and a mortgage,” Stevens said.
Builders struggling to keep up
...The biggest issues are significant shortages of concrete, lumber, windows, plumbing fixtures, hardware and appliances, said Mari Krashowetz, executive officer of the Southern Utah Home Builders Association...
...“The simplest material in the supply chain, such as resin that is used to manufacture (oriented strand board) came from mostly one factory in Texas and they were shut down. The reason for the material shortages is due to COVID delays and the housing boom we are experiencing. We also have a labor shortage to compound the delays,” Krashowetz said.
To keep up with demand, builders have needed to pivot on some building products and order different, sometimes more expensive materials, she said.
“Some builders have to order materials from northern Utah. They arrange for the trucking and pay extra to get the materials here. Home prices have been increasing because of the material increases and labor shortage. Trade contractors have been working extra hours to try and keep up with demand,” Krashowetz said.
Many builders are now only selling completed homes, Krashowetz said. “By doing this they can set the sales price based on actual costs and can avoid delays in delivering the home as promised at the time of sale. Other builders have made the decision to not keep waiting lists. Instead, they list a home and put it on the market so that it gives potential buyers the opportunity to put an offer in on the home,” she said.
In those instances, the offers are often “considerably higher” than list price, and the builder will choose the one that seems like the best fit, according to Krashowetz.
“This does not necessarily mean the highest price, sometimes it can simply be whomever seems like they will be easy to work with and the offer written up with the highest degree of professionalism,” she said.
Many are looking to existing homes due to the burden on builders.
Amick said he recently represented the seller of a 1,700-square-foot, three bedroom home. After listing the home on a Monday at 2:30 p.m., Amick said it had several offers within just a few hours. By the next day it had more than 20 offers and ultimately sold for “way over” asking price, he said.
While most are still seeing homes in person before making offers, some are buying sight unseen. One of Amick’s clients, who needed to move for business, “knew what would happen if she didn’t make an offer and take a chance, and so she did unseen, and we actually got it under contract. They accepted our offer,” he said.
Real estate agents are also seeing an influx of people whose jobs went remote during the pandemic moving to southern Utah from California, according to Amick.
“Why work in a city maybe where the property taxes are high and it’s crowded, when they come here and you have more open space, their taxes are lower, and in my opinion it’s much prettier,” Amick said.
He estimated the average length of time it takes buyers to find homes in southern Utah at two months. Some who bid high above asking price can get their first offer accepted, while others can make 10 offers and get rejected each time...Full Article @ https://www.deseret.com/utah/2021/4/...andemic-growth
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Last edited by delts145; Dec 26, 2022 at 3:47 PM.
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