March 2025 Real Estate Market Update

Hi, Chase Ames with the Ames Team Realty here to give you your real estate market update for the month of March 2025 in Washington County and the southern Utah area. Let’s jump into it and see what’s going on with sales.

Summary

📈 Sales Growth: Sold listings rose to 284 in February 2025 from 267 in February 2024 (about a 6.5% increase).
⏳ Stable Pending Listings: Pending listings remained nearly the same at 399 compared to 403 last year.
🏠 Record High Inventory: Active listings increased to 1,743 from 1,315, marking a 32.5% rise.
🆕 Increase in New Listings: New listings jumped to 737 from 653, up by approximately 13%.
🎉 Parade Period Impact: A week surrounding the parade saw the highest pending listings since 2020, with one day recording 165 new listings.
💰 Price Trends: The average list price reached $898K, and the average sales price increased modestly to $627K (a $10K rise).
⌛ Longer Market Time: Average days on market increased to 84 days (from 74), and the median days rose to 50 (from 45).
📉 Mortgage Rate Update: Mortgage rates are around 6.875% in early March, with expectations of further drops potentially boosting market activity.
🤝 Market Opportunity: The current market dynamics present a strong opportunity for both buyers and sellers, with The Ames Team ready to assist.

Sales Overview

Starting off, let’s take a look at the sales compared to February 2024. For sold listings in February, there were 284 transactions compared to 267 last year—a roughly 6.5% increase.

Pending Listings and New Listings

For pending listings (properties with new accepted offers), there were 399 this month compared to 403 the same month last year. This represents only about a 1% decrease by roughly four properties, showing that pending activity has remained relatively steady.

On the active listings front, there are 1,743 homes on the market now compared to 1,315 last year, marking a record high inventory with a 32.5% increase. Meanwhile, new listings jumped from 653 last year to 737 this month—a 13% increase. It’s important to note that this surge in inventory is driven by a high volume of new listings hitting the market, not by a slowdown in sales.

Additionally, there was notable activity around the local parade period. One of the weeks surrounding the parade registered the most pending listings in a single week since 2020, even though the actual parade week saw fewer sales compared to the weeks before and after.

Pricing Trends

Let’s talk about the pricing. The average list price for homes last month was an impressive $898,000. This high average reflects the trend of rising list prices, which has contributed to some properties taking longer to sell. For instance, the average sales price increased modestly to $627,000 from $617,000 last year—a $10,000 increase.

We also recently witnessed a bidding war on a listing priced around $2 million, highlighting that, regardless of price, a home will sell if it’s priced correctly.

Days on Market and Market Dynamics

The average days on market have increased from 74 days last year to 84 days now. This longer period is largely due to the higher list prices, which sometimes require sellers to adjust prices downward to attract buyers. The median days on market have similarly increased from 45 to 50 days.

Mortgage Rates and Future Outlook

Mortgage rates have experienced a slight change for the better, currently standing at about 6.875% in early March. Although these rates are in the high sixes to low sevens, the market remains very active, as evidenced by one week this past month having the highest pending listings since 2020.

Looking ahead, if rates continue to drop, we can expect a surge of properties flying off the market as buyers compete more fiercely. Whether you’re considering buying or selling, now is a great time to get involved. The Ames Team is here to help you navigate the market.

Conclusion

If you’re interested in selling your home or simply want to stay informed about the real estate trends in our area, feel free to reach out. The Ames Team is ready to assist you in any way, shape, or form. We look forward to talking with you soon!