Week 16
REPORT: April 14, 2025
Local Market Pulse
Median Home Prices: The overall Southern Utah median sale price is roughly $510,000, holding steady week-over-week (about 3% higher than a year ago) . In St. George, the median home price is around $600,000, which jumped about 7% from the previous week’s level (and roughly 34% above the same week last year, reflecting a higher-end sales mix) . Cedar City sits around $440,000 median (up ~11% from last week, +23% YoY) , while Hurricane is approximately $670,000 (Hurricane’s median has trended down about 14% year-over-year on listings despite strong recent sales) . These city-level swings can be volatile in a given week, but generally prices are flat to slightly up in Southern Utah compared to last month.
New Listings vs. Homes Sold: Seller activity is robust this spring. Approximately 150–160 new listings hit the Southern Utah market this week (roughly 100 in the St. George area, 25–30 in Cedar City, and 25 in Hurricane) . In contrast, around 80–90 homes were sold region-wide during the week (sales volume is improving but still a bit slower than new supply). In March, for example, 628 new listings came on the market in Washington County vs 354 homes sold, a sign that inventory is building up as we head deeper into spring .
Days on Market (DOM): Homes are selling, but not at the frantic pace of two years ago. The average listing sits about 2–3 months before selling. Washington County’s average DOM was 79 days in March, down slightly from 85 days a year prior . Similarly, Cedar City’s homes are taking around 75 days to sell on average, a big increase from ~46 days last year as the market normalizes . Buyers have a bit more breathing room now compared to the ultra-hot market of 2021–2022.
Pending Sales: Contract activity is steady to rising. Approximately 400–450 homes are under contract in the region currently. Washington County saw 556 pendings in March (up 16% year-over-year) , signaling solid buyer demand this spring. Weekly pending sales in mid-April have ticked up in step with new listings – one recent week even saw the highest number of pendings since 2020 during the Parade of Homes period . This suggests that well-priced homes are finding buyers, even if total sales aren’t quite matching new supply one-to-one.
Price Reductions: With inventory growth, price cuts are becoming common. Roughly 15–20% of active listings in Southern Utah have had price reductions. For example, 332 of about 1,534 listings in St. George (21.6%) are flagged as price-reduced , and about 104 listings in Hurricane (≈16%) have dropped their asking price . Sellers are increasingly adjusting expectations: on average, final sale prices are about 95–96% of the original list price in the area , whereas last year many homes still fetched closer to 100%. This trend means buyers can negotiate more now than in previous years.
What you need to know: Southern Utah home prices are holding steady overall, with St. George and Cedar City seeing sharp weekly jumps, while Hurricane lags slightly year-over-year; however, sales aren’t keeping pace with rising inventory, and roughly 15–20% of listings are cutting prices. Homes are taking 2–3 months to sell, pending contracts are up—especially for well-priced listings—and buyers now have more negotiating leverage than last year.
Interest Rate & Lending Updates
Current Mortgage Rates: Mortgage rates in Utah remain in the mid-6% range on 30-year loans, providing some relief from last year’s peaks. As of this week, the 30-year fixed rate averages about 6.63% in Utah (APR ~6.73%), while the 15-year fixed averages around 5.75% . Adjustable-rate mortgages (e.g. 5/6 ARM) are generally in the low- to mid-6% range for initial rates, and jumbo/construction loan rates are roughly similar to conventional. These slightly lower rates (down from ~6.8% a year ago ) are helping to bring some hesitant buyers back into the market, although rates are still much higher than the sub-4% levels of 2021.
Lending Programs & Announcements: Utah-specific mortgage programs continue to roll out to aid buyers:
The Utah Housing Corporation’s new construction assistance program is in full swing, offering up to $20,000 for first-time buyers purchasing new homes (under $450k) to use toward down payments or interest buydowns . This zero-interest second loan has been popular in Southern Utah, though qualifying inventory (new homes under the price cap) can be limited.
Down payment assistance remains available through UHC-approved lenders, potentially covering the entire 3.5% FHA down payment as a 30-year second mortgage . Additionally, special grants exist for certain groups – for example, Utah offers a $2,500 grant for veteran first-time buyers and a separate program for law enforcement officers (up to 3.5% of the purchase price) . Realtors should stay informed on these programs to help eligible local buyers reduce their upfront costs.
FHA & VA Loans: FHA and VA financing remains widely used in Southern Utah, especially for moderate-priced homes in communities like Cedar City. FHA loan limits in the area were recently updated (Washington and Iron County FHA limit is around $472,030 for single-family in 2025), which means many homes here qualify. Lenders report that VA loans are plentiful as well – Southern Utah has a significant veteran population, and zero-down VA financing is an attractive option for those buyers. No new changes were announced this week on FHA/VA eligibility, but it’s worth noting that FHA’s mortgage insurance premium was cut earlier this year, making FHA loans a bit more affordable for first-time buyers.
What you need to know: Utah mortgage rates remain in the mid-6% range, with the 30-year fixed averaging 6.63% and the 15-year at 5.75%, slightly easing from last year’s highs and helping re-engage some buyers. Local buyers are also benefiting from aggressive Utah Housing Corp programs, including $20K new construction aid, full down payment assistance, and targeted grants for veterans and law enforcement, while FHA and VA financing continues to play a key role in the region.
New Developments and Hot Neighborhoods
New Developments in the Pipeline: While no large subdivision received final approval this week, several notable projects are moving forward:
Ivins Resort Project: In Ivins (west of St. George), developers of the Retreat at Black Desert Resort have submitted a dramatically scaled-down plan after public outcry over density. The revised design now includes 603 units (210 single-family homes intended as long-term rentals and 393 resort condo units), along with open space preserves . This compromise came after residents sued to halt the original 1,000+ unit plan. Ivins City is expected to formally review this new plan soon – a key step for a development that could impact home values and rental markets in the Ivins/Kayenta area.
Washington Fields Rezoning: In the Washington Fields area (southeast of St. George in Washington City), the Planning Commission on April 16 tabled a zoning decision for a proposed 35-acre residential development near Heritage Field Dr. and Nielsen Ranch Rd . Commissioners discussed possibly requiring larger setbacks and lower density to address neighbors’ concerns about fire access and crowding. This delay highlights the tension between rapid growth and infrastructure – Washington Fields has boomed with new homes, but officials are carefully managing lot sizes and services before giving the green light to more construction. Realtors should watch for a revised plan; when approved, it could bring dozens of new homes to the market in coming months.
Neighborhood in Focus – Washington Fields: This week’s spotlight is on Washington Fields, a fast-growing neighborhood that is trending among buyers:
Why It’s Hot: Washington Fields offers newer homes, family-friendly subdivisions, and recently improved access. In 2024 the city opened a new SR-7 (Southern Parkway) interchange at 3650 South, directly linking Washington Fields to the freeway . This has cut commute times and made the area much more accessible, boosting its appeal. Washington Fields is now one of the most sought-after parts of Washington County for those seeking new construction on moderately sized lots. The area is attracting not only locals but also relocating families from out of state who appreciate the warm climate and nearby outdoor recreation (Sand Hollow, Zion NP, etc.).
Market Trends: Demand is high and inventory tight. Washington City officials note the city is gaining 1,000–1,500 new residents per year, the fastest growth in the county , and many of them are settling in developments in or around Washington Fields. New master-planned communities (e.g. the upcoming “Parkway” development with ~1,800 homes) are in the works to keep up with growth . Currently, inventory in Washington Fields often gets absorbed quickly; homes here still receive strong interest, though buyers are a bit more price-sensitive now. Median prices in Washington Fields are similar to the broader St. George area (mid-to-high $500Ks for mid-sized single-family), and we’re seeing fewer bidding wars than last year, but well-priced listings can garner multiple offers.
Infrastructure & News: The city is investing in schools and parks to support the growth. A new elementary school is planned as part of the Parkway development to relieve crowding . Road improvements are ongoing – aside from the new interchange, there are plans to widen key connectors. All this infrastructure expansion bodes well for property values long-term, but also means zoning decisions (like the 35-acre project mentioned above) often come with requirements for traffic mitigation, fire safety, and open space. Overall, Washington Fields is a neighborhood to watch – it combines the convenience of new infrastructure with the breathing room of suburban living, which is exactly what many Southern Utah buyers are looking for right now.
What you need to know: Developments in Ivins and Washington Fields are progressing cautiously—Black Desert Resort’s revised 603-unit plan is under city review after legal pushback, while a 35-acre rezoning in Washington Fields was delayed over infrastructure concerns. Meanwhile, Washington Fields remains a top-performing neighborhood, fueled by fast population growth, new freeway access, and strong buyer demand for new construction on modest lots.
Legal & Regulatory Roundup
State Legislation Updates: Utah lawmakers recently enacted a few measures that will impact real estate practice and development:
Density for Affordability (HB 37): The Legislature passed a law allowing cities and counties to permit denser housing developments in exchange for affordability and owner-occupancy guarantees . For example, a city could approve smaller lots or townhomes if the builder agrees that >25% of units will be affordable (for incomes ≤120% AMI) and that a majority of units be owner-occupied for at least 5 years . This could pave the way for more cottage home or twin-home projects in Southern Utah, as local governments leverage the law to address housing shortages. Keep an eye on city councils in our region considering density bonuses under this new framework.
Short-Term Rental Enforcement (HB 256): A new statewide measure will make it easier for officials to crack down on illegal short-term rentals . Once this law takes effect (May 7, 2025), cities and counties that prohibit or regulate vacation rentals can use a property’s online rental listing as evidence of a violation – as long as they have other info tying the listing to the property. In practical terms, this gives local code enforcement more teeth. For instance, St. George City (which only allows short-term rentals on very limited large lots or in resort zones) can more readily penalize unpermitted Airbnb operators by citing their listings . Expect stricter enforcement of STR bans in neighborhoods where they’re not allowed. On the flip side, areas zoned for vacation rental use (like resort communities in Hurricane or Ivins) may see a clearer distinction and less competition from “illegal” STRs.
HOA Regulation: The Utah Legislature also considered bills increasing oversight of Homeowners Associations. One proposal (which garnered attention but hadn’t passed as of session’s end) would establish an HOA ombudsman to handle disputes , and SB 202 imposes fines on HOAs that fail to provide required documents (financials, CC&Rs, etc.) to homeowners in a timely manner . While these state-level HOA reforms are still developing, Realtors should note that HOA rules remain a crucial factor locally – for example, some HOAs in Washington County still restrict rentals or RV parking in ways that affect a sale. No major new HOA case law hit this week, but awareness of the evolving legal expectations for HOAs (records transparency, fee caps, minimum lease terms, etc.) is important when advising clients.
Local Zoning and Ordinances:
ADUs and Rentals: Cities in Southern Utah continue adapting to earlier state mandates that internal ADUs (accessory dwelling units) be allowed. Most cities (St. George, Washington, Cedar City, etc.) have updated ordinances to permit internal basement apartments in single-family zones pursuant to state law. This week did not see new changes there. However, enforcement is key – e.g. Washington County now requires a license for any short-term rental in unincorporated areas , and areas like Springdale and Ivins maintain strict rental licensing as well. Realtors should ensure buyers understand local rules if they intend to Airbnb a property – every city’s policy differs (some, like La Verkin or unincorporated county, are more permissive with a license, while others ban STRs in residential zones).
City Council Actions: No sweeping new housing ordinances were passed by city councils this week, but a few are worth noting. The St. George City Council is in the process of budget discussions that include housing affordability initiatives (nothing finalized yet). Cedar City held public hearings on April 2 and 16 regarding zone changes for small parcels (routine infill developments) . Meanwhile, Iron County is exploring an update to its general plan, with citizen input on managing growth around Cedar City and Enoch. And as highlighted earlier, Ivins City reached a de facto compromise with developers on the big resort project, signaling a likely forthcoming approval of that scaled-back plan. All told, local governments are busy balancing growth with community concerns – expect to see more public hearings on zoning (especially for high-density or rental projects) in the coming weeks.
What you need to know: Utah passed two key laws impacting real estate: one incentivizing denser housing in exchange for affordability (HB 37), and another empowering cities to crack down on illegal short-term rentals using online listings as evidence (HB 256). Meanwhile, local cities are fine-tuning ADU and STR rules, HOAs face increasing scrutiny, and councils across Southern Utah are juggling zoning changes and growth management amid rising development pressure.
Competitive Intelligence & Insider Tips
Strategic Pricing and Incentives: In the current market, Southern Utah sellers should prioritize pricing realistically and offering buyer incentives rather than holding out for last year’s peak prices. Inventory is up to about 5 months’ supply now (a balanced market) , and the average sale is closing at just 95–96% of list price . This means buyers have more choices and negotiating power. To attract offers, consider listing at a competitive price (close to market value) and be willing to include concessions such as closing cost credits or mortgage rate buydowns. For example, offering to buy down a buyer’s interest rate by 0.5%–1% could tip a deal in your favor – a tactic increasingly used in Southern Utah as buyers grapple with 6%+ rates. Such incentives can be more appealing than a price drop and may broaden your buyer pool (especially helping first-timers afford the payment). The data show many sellers are making small concessions already, so being proactive can set your listing apart. Buyers in this market are also more likely to request repairs or credits after inspections, so prepare your home accordingly (take care of deferred maintenance upfront) to minimize renegotiations. In summary, work with the market, not against it: a well-priced, well-prepared home, combined with an attractive incentive, can still sell quickly even amid rising inventory and choosier buyers.
Marketing & Timing Tips: Given the influx of new listings each week this spring, timing and presentation are key. If possible, try to list your property early in the week – we often see a surge of buyer tours and online views Thursday through Saturday in Southern Utah. Hitting the market on a Monday or Tuesday can build exposure leading into that window, versus getting lost in the Friday flood of listings. Also, invest in local-focused staging and visuals: emphasize outdoor living spaces and desert landscaping in your photos. Buyers here respond to touches like covered patios, pool/spa potential, and energy-efficient features (many are coming from colder climates and value a home that’s equipped for the hot summers). For instance, highlighting that a home has newer AC or solar panels can be a selling point (and indeed, some HOAs and the state have eased rules to make adding solar easier, which tech-savvy buyers appreciate). Finally, leverage the fact that pending sales are on the rise – when negotiating, know that there are serious buyers out there (as evidenced by the uptick in contracts ). Use that momentum in your marketing copy (“Spring buying season is heating up – don’t miss out!”) to create a sense of urgency. By combining data-driven strategy with local know-how, you can successfully navigate buyer expectations in the current Southern Utah market.
In short, be adaptable: To stand out in today’s balanced Southern Utah market, sellers should price near market value and offer buyer incentives like rate buydowns or closing cost credits—many homes are selling at 95–96% of list. Listing early in the week, showcasing energy-efficient features, and prepping for inspection requests can give you an edge as buyers become more selective but remain active.
Sources: Local MLS data and board reports; Utah Association of REALTORS® market statistics; Washington County Board of REALTORS® March 2025 report ; Movoto market trends for St. George, Cedar City, and Hurricane ; UtahRealEstate.com; Utah Senate press release on First-Time Homebuyer Assistance ; City of Washington project updates ; KSL and Salt Lake Tribune housing news .
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