Is The Southern Utah Market In Trouble?

Is Southern Utah Headed for a Correction? Not So Fast.

With record inventory buildup, longer days on market, and an unusually high absorption rate, it might seem like Southern Utah’s housing market is headed for a correction. But a closer look at the numbers tells a different story—one of relative stability, not crisis.

We analyzed a specific segment of the market—single-family homes in the greater St. George area between 2,500 and 3,000 square feet, situated on 0.25–0.30 acre lots, with 3–4 bedrooms, 2–3 bathrooms, and 2–3 car garages. We compared sales from April through May in both 2024 and 2025.

Here’s what we found:

• Average Sales Price: Dropped slightly from $765,438 in 2024 to $760,613 in 2025—a minimal change.

• Price per Square Foot: Nudged upward from $283 to $285—again, a negligible shift.

• Sold-to-List Price Ratio: Dipped from 98.48% to 97.86%—not a significant difference.

The most notable change? The number of homes sold. In this price and size range, there were 13 sales in 2024 and fewer in 2025. That decline in volume—not price—is the most meaningful trend.

While we didn’t delve into market time in this article, nor a host of other interesting events in the market (you can find that in our monthly market reports), it’s worth noting that even with increased inventory and slower movement, the market is holding steady. The dramatic downturn that some are anticipating simply isn’t reflected in the actual data.

In my view, much of the national hesitancy in the market is rooted in political uncertainty. However, early signs suggest that some recent changes—like tariffs and trade policy shifts—could yield positive outcomes for many sectors. If that trend continues, we could see a return of transaction volume in the local housing market.

Most experts also anticipate that the Federal Reserve will cut interest rates before year’s end. While lower rates will certainly help with affordability for buyers using financing, they may not spark a significant increase in overall market activity.

Bottom line: Don’t let headlines shape your perception. Lean on local real estate professionals who are actively helping buyers and sellers navigate this evolving market. Despite the noise, Southern Utah remains fundamentally stable.