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The Southern Utah housing market continues to evolve in 2025, with notable shifts in inventory, pricing, and market dynamics in Cedar City and St. George. This analysis dives into the latest data from June 2025, comparing it to trends over the past decade to provide a comprehensive understanding of current conditions for buyers, sellers, and investors in these two vibrant communities.

Understanding the Market: Cedar City vs. St. George

Cedar City and St. George, both located about 45 minutes apart, present distinct real estate landscapes influenced by differences in population size, elevation, and lifestyle amenities. Cedar City, with a population just over 40,000, experiences four mild seasons and a higher elevation. St. George, home to nearly 110,000 residents, offers a warmer climate surrounded by the iconic red rock mountains characteristic of Southern Utah.

Both markets have experienced a significant increase in active listings compared to previous years, signaling a shift toward a more balanced market where homes tend to stay on the market longer than they did in recent years.

Cedar City Housing Market Trends

Inventory in Cedar City has surged notably, with active listings jumping from 224 in June 2024 to 337 in June 2025—the highest in the past ten years for this month. This increase reflects homes sitting on the market longer, as evidenced by the rise in median days on market to 31 and an average of 67 days, both figures exceeding the ten-year average.

New listings have also increased from 85 in 2024 to 114 in 2025, aligning closely with the decade-long average, aside from dips in 2016, 2019, and 2024. Pending sales and closed transactions have remained relatively stable, with 77 pending and 64 closed sales in June 2025, comparable to recent years.

The higher average days on market compared to the median is influenced by niche and higher-end properties, some of which may remain listed for over a year due to specific buyer requirements or pricing challenges. This diversity underscores the importance of evaluating properties on a case-by-case basis with professional guidance.

St. George Housing Market Overview

St. George mirrors Cedar City’s trend with a significant rise in active listings, reaching the highest level in the past decade. However, new listings, pending sales, and closed transactions have remained steady over the last two years, indicating that while inventory has expanded, the rate of sales has not accelerated proportionally.

Median days on market stand at 34 days, with an average of 76 days, reflecting a similar pattern of homes staying longer on the market. This data excludes surrounding communities such as Washington, Ivins, and Santa Clara, focusing solely on St. George proper.

Monthly Supply and Absorption Rates: What They Mean for Buyers and Sellers

Absorption rate, or months of supply, measures how long it would take to sell the current inventory if no new homes were listed. Cedar City currently has a 5.09-month supply, while St. George holds a 4.6-month supply. These figures represent a considerable increase from last year’s 3.47 and 3.53 months, respectively.

Typically, a market with a 6 to 7-month supply is considered neutral, where home prices tend to appreciate, and both buyers and sellers have negotiating leverage. Less than six months signals a seller’s market, favoring sellers, and more than seven months indicates a buyer’s market.

Southern Utah’s current position, nearing but not reaching the neutral threshold, means buyers are gaining more negotiating power than in recent years, especially when sellers price homes above market value. Sellers must now be more competitive, adjusting prices and terms to attract buyers.

Median and Average Sales Prices: Tracking Appreciation

Cedar City Pricing Trends

For June 2025, Cedar City’s median sales price stands just above $423,000, with the average sales price slightly higher at around $440,000. After declines in 2023 and 2024, both median and average prices have rebounded this year, indicating that higher-priced single-family homes are closing more frequently than lower-priced townhomes and twin homes, which are currently slower to sell.

St. George Pricing Insights

St. George’s median sales price for June 2025 is approximately $555,000, with an average sales price soaring to about $749,000. The larger gap between median and average prices highlights a significant volume of high-end home sales in the area. While prices dipped from 2022 to 2023 following interest rate declines, they have since risen steadily, approaching pre-2023 levels.

The annual St. George Parade of Homes, held every February, showcases some of these impressive luxury properties and serves as a cultural highlight for prospective buyers and residents alike.

Market Dynamics: Seller Pricing, Concessions, and Negotiations

Despite rising inventory, some sellers remain anchored to pricing based on past market conditions rather than current demand. According to recent data from Redfin, list prices continue to grow while actual sale price growth is decelerating, signaling a market adjustment where sellers must heed buyer feedback more closely.

Price reductions are increasing nationally, with 24% of homes in Utah experiencing cuts. Sellers are also offering more concessions—such as price reductions, closing cost credits, or repair allowances—to remain competitive. Nearly 44.4% of sellers in Utah are making concessions, a near-record level reminiscent of early 2023.

Today’s market contrasts sharply with the seller-favored climate of a few years ago, when homes often sold within days and buyers waived inspections or appraisals. Current conditions require sellers to be realistic and flexible to attract qualified buyers.

Economic Indicators: Inflation and Mortgage Interest Rates

Inflation remains moderate at 2.35%, a slight increase from the previous month but significantly improved compared to the past three years. This stable inflation outlook offers hope for continued easing of mortgage interest rates.

Mortgage rates for a 30-year fixed loan have recently trended downward, though they remain above the lows seen in late 2023. Given the volatility of rates, buyers should stay prepared to act when favorable rates become available. Local lenders familiar with Southern Utah’s market can provide personalized guidance to secure the best possible terms.

Historical Perspective: Recessions and Their Impact on Housing

Examining the last six U.S. recessions reveals a consistent trend: mortgage interest rates tend to fall during economic downturns. However, home price responses vary. Only two recessions (1991 and 2008) saw home prices decline significantly, with the 2008 housing bubble crash being the most severe. Other recessions witnessed continued home price appreciation despite economic challenges.

This historical context suggests that while economic uncertainty may affect market dynamics, it does not guarantee falling home prices, especially in regions like Southern Utah with strong demand and growing populations.

Key Takeaways for Buyers and Sellers in Southern Utah

  • Buyers: Increased inventory means more choices and greater negotiating power, especially for homes priced competitively. Carefully analyze days on market and property specifics with a trusted real estate professional to identify the best opportunities.
  • Sellers: Pricing homes according to current market conditions is critical. Being open to concessions and responsive to buyer feedback can enhance the likelihood of a timely sale. Realistic expectations are essential in today’s shifting market.
  • Investors: The diversity in property types and pricing segments, especially the slower movement of townhomes and twin homes in Cedar City, presents opportunities for strategic investment and rental property acquisition.

For those interested in navigating the Southern Utah real estate market, connecting with local experts and lenders is highly recommended. Comprehensive listings and detailed market analyses are available at bestutahrealestate.com, a trusted resource for Utah real estate.

Frequently Asked Questions (FAQ)

What does the increase in active listings mean for the Southern Utah housing market?

The rise in active listings indicates more homes are available for sale and are staying on the market longer. This shift offers buyers more options and negotiating leverage, while sellers face increased competition and may need to adjust pricing or offer concessions.

How do median and average sales prices differ, and why is this important?

Median sales price represents the midpoint where half of the homes sold for more and half sold for less, while average sales price includes all sales and can be skewed by very high or low-priced homes. The gap between these figures, especially in St. George, highlights the impact of luxury home sales on market pricing.

Is now a good time to buy or sell a home in Cedar City or St. George?

Current market conditions suggest a more balanced environment than previous years. Buyers benefit from increased inventory and negotiating power, while sellers need realistic pricing and flexibility. Individual circumstances and property specifics should guide decisions in consultation with real estate professionals.

How are mortgage interest rates trending, and what should buyers expect?

Mortgage rates have recently begun to trend downward but remain above historic lows. Buyers should stay prepared with financing pre-approval and monitor rates closely to act when favorable conditions arise.

What impact does a recession typically have on home prices and mortgage rates?

Historically, mortgage rates tend to decrease during recessions to stimulate economic activity. Home prices may or may not decline depending on the nature of the recession. Southern Utah’s strong market fundamentals help support continued appreciation in many cases.

Additional Resources for Utah Homebuyers and Sellers

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