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ST. GEORGE -- Sales of new homes tumbled 11.2 percent between December and January as home builders struggle to compete in markets saturated with foreclosed homes.
Economists call it a worrisome sign, because it follows the worst year for new home sales in nearly 50 years. But there may be a bright spot on the horizon for real estate, at least in Southern Utah.
It isn't hard to find a brand new house for sale in St. George. In fact, "for sale" signs seem to be everywhere after the region suffered greatly in the nationwide housing crisis.
These smaller homes under $200,000, priced well, get multiple offers all day long.
–Rich Potter
But there is one market in Southern Utah that is suddenly booming.
"Now that the markets have dropped so much, a lot of bank-owned properties have appeared," said broker Rich Potter.
Potter's firm represents seven banks trying to sell foreclosed properties in Southern Utah, and there are a lot of buyers.
For example, five offers were made on a 3-bedroom townhouse in just 48 hours.
"These smaller homes under $200,000, priced well, get multiple offers all day long," Potter said.
In most cases, those offers are much higher than the asking price and offers are coming in cash. Potter is seeing most would-be buyers coming from the Wasatch Front -- interested in a weekend home in St. George.
Other potential buyers are interested in the bank-owned properties, including vacant lots, as an investment.
"They want to invest in something they can see, touch, feel and use instead of something they watch on a computer screen," Potter said.
Potter hopes the foreclosed sales will clear the way for new home sales to start picking up.
"We've noticed from the activity in the supply and demand the market has bottomed out," Potter said. "I've actually noticed a slight increase in a couple of subdivisions."
It's an optimistic sign after a couple of terrible years for real estate in Southern Utah.
E-mail: spenrod@ksl.com
