Q: Are Home Prices Falling?

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’m working from home (as many others are), so I’m dressed comfortably for this video. We’re essentially running our entire business virtually right now. People are concerned that home prices are decreasing, and it makes sense; cities are shut down, people are losing jobs, 300 thousand people are out of work in Las Vegas alone. 

However, a recession does not equal a housing crisis. Home prices have actually appreciated during three out of the last five recessions, in 2001 values increased by 6.6%! The difference is that we had a housing collapse in the United States in 2008; home values decreased by 19.7%. 

Home prices are not currently falling in Washington County, primarily because we have an amazingly low supply of housing. In Washington County, during the crash of 2008 there were a colossal 8.5 months of inventory, and today we only have 3.5 months’ worth. Your home value may decrease eventually; generally, it takes eight to 12 months after a recession for home prices to be affected.

“A recession does not equal a housing crisis.”

We’re not in a housing or economic collapse, the economy has been damaged because we’re undergoing lockdown. Hopefully, as soon as the pandemic is over, our economy will begin to recover. 

If you have questions about your house or its value, please schedule a time to meet with a member of our team virtually or email us. We would love to help you. We’re wishing you a safe 2020!