Week 15
REPORT: April 7, 2025
Local Market Pulse
Prices: The Utah housing market remains steady entering April. The statewide median home list price is about $548,000 (roughly flat, with under 1% change in recent weeks) . In Washington County (St. George area), the median list price is higher at approximately $645,000, a slight +0.6% uptick from last month – essentially a marginal week-over-week increase. Homes in Southern Utah are selling for about 95–96% of their original list price on average , and over 55% of recent sales statewide have closed below asking price , reflecting a market where buyers have some leverage and price reductions are common.
Supply & Demand: New listings are outpacing sales. Roughly 628 new homes were listed in Washington County in March versus 354 homes sold in that month . That equates to roughly 150+ new listings vs. around 80 sales in an average week – indicating inventory is building faster than it’s being absorbed. Pending sales are robust, however, suggesting future closings will pick up: about 492 homes went under contract in March (a 19% year-over-year increase) . Homes are averaging around 60 days on market before sale (virtually unchanged from a year ago) . This relatively moderate days-on-market figure, coupled with rising pending sales, points to a balanced but active spring market – inventory is higher than last year, yet well-priced homes are finding buyers within a couple of months. Finally, approximately one in five listings undergoes a price cut during their listing term (as implied by sale-to-list trends), underscoring the importance of pricing correctly in the current market climate.
What you need to know: Washington County’s housing prices remain stable at about $645,000 (+0.6% from last month), with buyers still negotiating below asking price. While new listings significantly outpace current sales, strong pending sales suggest an active market ahead for accurately priced homes.
Interest Rate & Lending Updates
Mortgage Rates: Mortgage rates in Utah remain elevated but showed slight easing around early April. The 30-year fixed rate is averaging around 6.8–6.9% for Utah borrowers (near the higher end nationally) . 15-year fixed mortgages are hovering near 6.0% , offering a lower rate in exchange for a shorter term. Adjustable-rate mortgages (e.g. 5/6 ARMs) are in the low 7% range on average , while a 7/1 ARM averaged about 6.35% as of April 7 . These rates have inched up from their winter lows – for instance, 30-year averages briefly dipped to ~6.5% earlier in 2025 before rising back toward the high-6s . Such levels are well above last year’s, so buyers remain rate-sensitive. Local lenders note that even a 0.1% rate change can significantly impact monthly payments, keeping affordability top of mind.
Lending Programs: There have been no major Utah-specific program changes announced this week, but several homebuyer assistance programs are in effect. The Utah Housing Corporation continues to offer down payment assistance in the form of a second mortgage – up to 6% of the first loan amount can be provided to cover down payment or closing costs . This helps cash-strapped buyers who can qualify for a loan but need upfront funds. Additionally, Utah’s new First-Time Homebuyer Assistance Program (established last year) remains active: it provides eligible first-time buyers an interest-free loan up to $20,000 to buy down their interest rate, apply toward a down payment, or pay closing costs . This program applies only to new construction homes under $450,000 and requires Utah residency and a three-year break from prior homeownership . It’s an example of state-level efforts to improve affordability. On the federal side, FHA and VA loan limits were adjusted for 2025 (Washington County’s FHA limit now falls in the mid-$400Ks), and FHA’s lower annual mortgage insurance premiums (reduced in 2023) continue to benefit qualifying buyers. No new changes in FHA/VA policy occurred this week, but USDA rural loan rates for low-income buyers remain favorable (the USDA direct loan rate is 5.00% as of April 1 for qualifying rural Utah borrowers) . Overall, while rates are high, buyers have an expanding toolkit of assistance and loan options in Utah – from state-backed second loans to specialized federal programs – to help navigate the current financing challenges.
What you need to know: Utah mortgage rates remain high (30-year fixed ~6.8–6.9%) but saw slight relief early April, keeping affordability tight. While no major lending program updates occurred this week, buyers continue to benefit from state-sponsored down-payment assistance and federal programs like FHA/VA loans and USDA rural mortgages.
Hot Neighborhood Spotlight: Stucki Farms development (Washington, UT). This 600-acre master-planned community – recently approved for higher density and mixed uses – reflects the growth and investment pouring into Washington County
New Developments: Big developments are moving forward in Washington County. Notably, the Washington City Council just approved zoning changes and a development agreement for the expansive Stucki Farms project . This master-planned community (in Washington City, just outside St. George) spans nearly 600 acres and will include 2,300+ homes, parks, 24 acres of lakes, 3+ miles of trails, and even a surf park and resort-style amenities. The latest plan modifications (passed on April 10) increase residential density and add new vacation rental and commercial areas, along with a 46-acre hospitality zone . Importantly, the agreement also solidified water rights and usage plans for the project – a critical factor in desert developments. Stucki Farms’ approval underscores local officials’ cautious support of growth: they accommodated higher density and short-term rentals in the project after months of public input, signaling a balance between development and community concerns. With construction underway, Stucki Farms is set to deliver significant new inventory (including single-family homes and casitas) over the coming years, which should relieve some housing pressure while creating a new lifestyle hub in the area.
Trending Neighborhood – Desert Color: Another hot spot in the county is the Desert Color community on St. George’s south side. Desert Color has been gaining significant attention due to its scale and unique features. It’s a 3,400-acre master-planned development slated for around 11,000 homes at full build-out . The community offers a mix of housing types – from single-family homes to condos and townhomes – plus retail, restaurants, and extensive recreation (including a signature 2.5-acre tropical lagoon). Why it’s trending: Desert Color is experiencing strong demand thanks to its resort-style amenities and innovative design. Home sales there have been brisk, and new phases continue to open. It’s also attracting major commercial investment – for example, a second St. George Costco store is being built in the Desert Color area to serve the growing population , alongside other incoming retailers and grocery options. This influx of shopping and dining options is boosting Desert Color’s profile as the up-and-coming live-work-play neighborhood in St. George.
Infrastructure & Policy Impacts: Desert Color has drawn praise for its forward-thinking infrastructure amid Washington County’s water constraints. Every home in the community is equipped with dual water meters and uses a secondary water system for outdoor irrigation, enabling reuse of treated water for landscaping . Notably, no golf course is planned (a departure from traditional desert developments), which conserves water. These measures align with St. George City’s new conservation ordinances – the city now mandates water-efficient landscaping (and even the mayor has vowed not to approve new golf courses going forward) . State legislators touring Desert Color this year highlighted it as a model for water-smart growth in Utah . The community also benefits from recent infrastructure investments, such as the Southern Parkway highway extension and a new interchange, which improve access. All these factors – smart planning, amenities, and connectivity – have made Desert Color one of the most watched neighborhoods. Realtors are noting rising lot values and quick turnarounds on new releases in this area. Expect Desert Color to continue driving Washington County’s housing narrative, as it balances rapid growth with sustainability and modern community design.
What you need to know: Washington County’s newly approved Stucki Farms project (2,300+ homes) highlights substantial growth, adding significant housing inventory with resort amenities and vacation rentals. Meanwhile, Desert Color remains a hot spot, attracting buyers through innovative, water-smart design, strong commercial investment, and excellent infrastructure—rapidly becoming a top live-work-play community.
Legal & Regulatory Roundup
State Legislation: The Utah Legislature wrapped up its 2025 session without any drastic new housing laws that would directly impact Washington County zoning. Notably, lawmakers tabled bills that sought to override local zoning to allow more accessory dwellings and smaller lots. HB 88, which would have forced cities to permit internal ADUs (accessory dwelling units) in all single-family zones, and HB 90, which would have required cities to allow 6,000 sq.ft. lot splits, both stalled in committee . This means local governments retain control – for now, there’s no state mandate expanding ADUs or higher density beyond existing laws. For Washington County cities like St. George and Hurricane, this preserves the status quo: ADUs are still limited to certain areas and requirements (e.g. owner-occupied internal units are allowed per earlier state law, but detached “casitas” remain subject to city ordinances). The failure of those bills signals that Utah will continue using incentives over preemption when tackling housing affordability, so no immediate regulatory changes for local real estate came from the state this week.
Local Zoning and Housing Policies: On the local level, Washington County and its municipalities are refining rules to manage growth and community impact. Short-Term Rentals (STRs) remain a focal point. Washington County requires a license for any short-term rental in unincorporated areas and has banned “unhosted” STR properties (rentals without an on-site owner) in those county areas since late 2021 . In cities, enforcement continues: St. George allows vacation rentals only in designated resort zones and requires out-of-area owners to appoint a local manager , while Washington City and Hurricane also mandate STR licenses and even impose spacing rules (Hurricane requires 300 feet between STR properties) . No new ordinances were passed on STRs this week, but Realtors should be aware that illegal STRs are being actively shut down via code enforcement – the county has noted that a proliferation of STRs can drive up long-term rents by reducing local housing supply . Compliance with these STR regulations is critical for anyone looking at investment properties.
Water & Development Regulations: Water availability continues to influence local policy. As mentioned, St. George City implemented stricter conservation ordinances – these include limits on high-water-use landscaping (many existing lawns are being replaced with desert plants) and an effective ban on new golf courses within city limits . Such rules directly affect developers and HOAs, pushing new subdivisions to include drought-tolerant landscaping and water reuse systems (as seen in Desert Color). Washington County’s government is also exploring impact fees or other measures related to water usage for new developments, though no formal new fee was enacted this week.
HOA Rulings: There were no major HOA court decisions or new case law this week impacting property owners. However, it’s worth noting a recent trend: some HOAs in Utah have been amending bylaws to address rentals and water restrictions in line with city policies. Realtors should double-check HOA rules on nightly rentals, landscaping, and even EV charging, as these can evolve rapidly.
Real Estate Division Updates: The Utah Division of Real Estate (DRE) issued a Q1 bulletin reminding agents of licensing changes. Starting this year, new mortgage loan officers in Utah no longer need to take an extra 5-hour state-specific course post-licensing – the DRE removed that requirement to streamline licensing . This reduces a small burden for industry newcomers (and those reinstating expired licenses), but regular CE requirements remain in place. The DRE also cautioned agents about “foreclosure rescue” scams targeting homeowners – under Utah Code §61-2f-401, it’s illegal for unlicensed individuals to solicit distressed owners with deceptive promises . While not specific to Washington County, it’s a timely reminder given the nationwide uptick in foreclosure-related fraud. All licensed Utah Realtors should stay vigilant and ensure struggling sellers are guided to legitimate relief options. In summary, the legal landscape this week is one of incremental adjustments rather than sweeping changes – local governments fine-tuning rules to balance growth and quality of life, and state regulators focusing on professional practices and consumer protection.
What you need to know: No significant state-level zoning changes passed this session, leaving Washington County cities firmly in control of ADUs and housing density decisions. Locally, enforcement remains strict on short-term rentals and water conservation measures, emphasizing compliance and careful due diligence for investors and realtors alike.
Competitive Intelligence & Insider Tips
Tactic – Seller Concessions for Rate Buydowns: With mortgage rates still high and inventory rising, an effective strategy in Washington County is to get creative with financing incentives. One actionable negotiation tactic gaining traction is having sellers buy down the buyer’s interest rate as part of the deal. For instance, offering a “2-1 buydown” (where the rate is 2% lower in year 1 and 1% lower in year 2, with the seller covering the difference upfront) can make a home much more affordable to buyers in the short term. This tactic has been successfully used by local builders – one Southern Utah builder is advertising a 2/1 rate buydown on new Desert Color condos , and many individual sellers are now following suit by offering to pay points or closing costs toward the buyer’s loan. Why this works: Buying down the rate can save buyers hundreds on their monthly payment, easing “payment shock” from 7% rates. In the current market, that incentive can set your listing apart. Washington County agents report that listings which proactively advertise a seller-paid rate buydown or closing credit are attracting more showings and often selling faster, especially for mid-range homes where buyers are stretching their budgets.
Insider Tip: If you’re a listing agent, consider marketing a potential rate buydown in your MLS remarks or flyers – e.g. “Seller will contribute $10,000 to rate buydown or closing costs.” This signals to buyers that the seller is willing to negotiate and help with affordability. It often yields stronger offers as buyers perceive they’re getting a better deal. Make sure to coordinate with a lender to illustrate the monthly savings in your marketing materials (for example, show what the payment would be after a 2% rate reduction). For buyer’s agents, this environment is an opportunity to ask for concessions: over half of sellers are already not getting their full asking price, so requesting closing costs or a price reduction is firmly back on the table . Another tip is to leverage the relatively longer days on market – if a home has been listed 45+ days, chances are the seller will be amenable to negotiations. We’re also seeing “refresh and relist” strategies: some agents withdraw and relist stale properties with updated pricing or improvements to grab fresh attention. In terms of marketing trends, targeted social media advertising has proven useful in Washington County, given the influx of out-of-state buyers. Savvy agents are using Instagram and Facebook video tours of homes highlighting the Southern Utah lifestyle (scenic views, proximity to trails, etc.) to remote buyers in California, Nevada, and beyond. But ultimately, the insider consensus this week is: financial flexibility wins deals. Homes where the seller can make the numbers work for the buyer – whether via price, rate, or repairs – are the ones getting offers. By incorporating a rate buydown or other concession into your negotiation toolkit, you can bridge the affordability gap and close more transactions in the current market climate.
In short, be adaptable: Seller-funded mortgage rate buydowns, especially popular 2-1 buydown offers, are proving highly effective in attracting buyers amid elevated interest rates in Washington County. Realtors leveraging clear, proactive messaging on these seller concessions—particularly in MLS listings and targeted social media ads—are experiencing quicker sales and stronger offers.
Sources: Utah Association of Realtors & MLS data ; Weekly inventory report (Mar 24, 2025) ; Redfin Market Insights ; City Creek Mortgage rates ; Bankrate Utah rates ; Utah Housing Corp Program details ; Salt Lake Tribune & KUTV news on Ballpark redevelopment ; Utah legislative tracker (2025 session) ; South Salt Lake city ordinance update ; Davis/Webb market report ; KUTV market analysis.
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