In the past decade, the housing market in St. George Utah has experienced a dwindling inventory, which has led to an increase in the price of houses. It is projected that the whole of Utah will continue experiencing an increase in population. This means that the demand for homes for sale in Utah will experience an upward trajectory.
The fourth quarter of 2019 was met with high home prices, because of increased demand for housing. However, Utah housing and real estate market predictions 2020 is not a state many people know about. This is owing to the global pandemic (Covid-19) and the ailing economy, which is unfortunate. So, will the housing market crash in 2020?
Real estate analyst continues to ponder what the future holds for the national real estate market. We investigated the future of the housing market specifically in St. George Utah, and here are some of the predictions.
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Expect a Weaker Housing Market in 2020
Homes for sale in St. George Utah will experience a decrease in demand. This is owing to the Coronavirus global pandemic and the recent shutdown in operations. Moreover, residents are focusing on the health of their family members. Those who were hoping to relocate to St. George Utah are more than likely to postpone their plans. This is owing to the shutdown, which affects the globe.
Consider that the shutdown is causing the whole of America to experience financial issues. The stock market is no longer performing as expected, while companies are shutting down resulting in panic, as people lose jobs. The housing market will be hardest hit, and you can expect this to continue for as long as the pandemic continues.
Mortgage Lenders Will Most Likely put Lending on Hold
As the Covid-19 continues to cause global uncertainty, you can expect that for mortgage lenders in St. George Utah, it is not going to be business as usual. This is owing to the negative effects brought about by the stock market crash, loss of jobs and generally, a slower economy, which is now a global problem.
With all the uncertainty, how do you expect mortgage lenders to keep lending? Thus, it is obvious that St. George homes for sale will experience decreased viewing.
While this is an understandable approach, it is important noting that existing mortgages may not perform in 2020, as expected. The lenders will focus on protecting themselves against defaults, which is already projected. In short, the mortgage lenders are on the “wait-and-see” mode.
Those on Secure Jobs are Likely to Keep Buying Homes
At this time of crisis, there are those persons who are earning huge profits. Consider health workers, medical professionals and those in government who are still engaged. This lot of people will most likely take advantage of those looking to sell homes quickly, which we can refer to as panic selling.
This means that all hope is not lost. Real estate investors and property builders will experience some demand for houses, at least from those in the mentioned professions. Note that there will still be persons who will need to purchase a home for whatever reason. In this case, a huge majority will most likely be cash buyers as mortgage lenders are waiting to see what the future holds.
The market is getting difficulty for Housing investors
For property investors, 2020 will be a difficult year. This is considering that new homes for sale in St. George Utah will experience a slower demand. Moreover, the construction of new homes is likely to stop, as the financial supports will most likely lack. This means that property investors can gear up for tougher times.
For those who have already put up rental units, expect that tenants will delay paying rent because of the hard economic times that we continue experiencing. If property prices come down because of decreased demand, property investors will most likely be after a breakeven. This shows that the projected profit margins may never be achieved in 2020.
Expect a Rebound in 2021
In many ways, 2020 is going to be a tough year for property investors in St. George Utah. Homes for sale in Saint George Utah will experience a low demand. Moreover, property investors will have no choice but to cope with lower sale prices to cash in.
As small and medium businesses stay closed, workers will be laid off, meaning existing mortgages will not perform. However, the economy will recover and people will go back to their usual businesses. Things will eventually bounce back in 202, although there will be a slower come back.
Conclusion
The global pandemic is coming at a time when no one had projected. This has affected the housing market not only in St. George Utah but also globally. This is likely to take the better part of 2020, and all we can hope for is a comeback in the year 2021.