Tuesday, December 13, 2005

Looing Back- 2005 Growth Issues in St. George

Growth Factors- Overbuilt on bigger homes?
Given the recent events of the Hurricanes Katrina and Rita the builders have had to pass on rising construction costs. This has impacted the typical build situation also. In St. George contractores have had to make good on more expensive lots by building the bigger, more luxury homes. Now, they have been hit with not being able to sell these homes as easily. In the nation bigger houses will be affected by the rising energy costs associated with outsized heating/cooling bills, that may deter even more of these buyers. Some local St. Georgian’s may be surprised to learn about the number of elaborate luxury homes that exist in St. George. They may not grasp the full extent of the affluent baby boomers and retiree’s that move in here. Local market real estate sales comparison data will help sober these people up(http://www.sutc.com/)

Lot Situation- history and some outlook on…
Indeed, the lot situation has been a bit of a "set-up" for consternation by many, historicaly lamenting the difficulty with low inventory and too high of prices. Many of the average "worker bee" citizen whom want to stay, have expressed angst over housing costs. This is changing, if ever so slowly. Please feel free to browse the entire area listings. Having a place to grow can be part of the problem, but it appears that there may be enough land coming down the pike as inventory has increased. One of our local realtors that deals in developing has been turning “farm” land into squares for some time now. This realtor has expressed interest in helping prices and has helped the community by helping provide some good new inventory. I did not know a realtor could make such a difference, but this is indicative of the type of people that live here and that are in such a position to help out.

How some people have been able to get into their homes…
Indeed, many of our “worker bees” wonder how and the heck many people are getting into houses, when he/she feels that their teacher or police salary ought to be professional enough of a job to hold them into the community. Some of these individuals may not know about the affordability of option loans, including interest only loans that are making it possible for many, that typically would have no other means. Our preferred lenders are conservative, so can help evaluate whether that option is good for your situation. Indeed, there seems to be a shift in how people look at equity. Some look at building it by paying down one home loan, while the option loan people may be moving more times and look at equity throught the lense of buying low and selling high a number of times. A lot can depend on how long you will live in that residence before moving. Informed consultation can help a lot.

Speculation on Urban Development
St. George has been plagued by some traffic problems, but it may not be a deciding issue with more access ways opening up. Urban center development for example in Santa Clara has made many Santa Clara residents independent of having to come across town. Perhaps, the effectiveness of the cities efforts may alleviate some congestion problems for the future.

Global Conditions- upcoming…
Yet, all these factors just may play second fiddle to the larger, more global economic conditions that play into the demand St. George has and will have into the future for out-of-town, in-town buyers an d sellers. More to come on this later.