Thursday, January 31, 2008
St George is a wonderful place to live!... IF you are a realtor with a bunch of REO bank sales in your queue. Never mind my huge bias of it is a heavenly place to live.
Combine this... St George Real Estate Sales
Your St George Utah real estate market update comes from some pretty good background or listening-in, on the local statistics experts. I use that word "experts" with caution, because we know nobody holds a "crystal ball". Take that into consideration when we talk about the following, OK? Can I start by saying I'm going to be couching every thing in the phrase of "combine this..."?
Basically, we have felt a slight pick up, some yes, but mostly on the REO bank sale front. Combine this with an article off MSN that reported the bank sales not to be letting up with the option loans still making its rounds through the next year- interest rates changing on people from fixed to variable higher rates, thus more foreclosures possible. Yet, as of today I see some segment of a lot less REO homes on, that I have ease dropped on office activity in seeing a surge of buyer activity regarding. On the other hand, combine it with St George not lacking in the supply or inventory, on the market, category. On the other hand 'back at you', I thought I heard that we are hedging changing the pace toward downward, to sale faster than they come on (what must go up there, must come down to) to start us back to a more normal supply (way far off). However, the catch is that supply is anticipated to come on perhaps even stronger throughout the year. Go back and combine this with the foreclosure market, at least giving enough comparables to show lower pricing. That being said, you'd think it is possible to see lowering of prices. That is very possible by this time next year.
Combine that... FHA Loans & Interest Rates
Yet, I have felt in my office a surge of activity, and we are the largest producing office, so you would think that could be a big enough pulse maybe to tell something about here and now. Combine that with the idea of buying activity could be expected to come back stronger perhaps because you can't keep it back forever. Uh, how about this area being centrally located. Combine that with 'way good' all time low interest rates. Combine that with FHA, or federally backed loans becoming easier for people to get with new reforms. Before option loans in 2000, FHA accounted for 25% of loans- that's huge. So, it could come back in to help in a significant way-- so says chief economist Yung at the National Association of Realtors. Already, minor changes to the FHA program, making them easier to apply for and obtain have been incorporated, but the significant changes are anticipated to come around beginning of summer or later- you know congress. Forclosures however, have the ability to offset everything in bringing prices down and supply up. Combine all the factors, listening to the stats people especially, and I predict a market that will be flat to somewhat depreciating. Homes could continue to suffer some depnding on area, especially if in higher price brackets, and the fact of new construction being the one key variable unknown impacting a lot of that 'stuff'.
Good News If you are the Buyer
The good news for buyers may be that enough REO bank sales can pull on houses to sale below perceived market value. So as almost always, selective buying or "it was a deal" kind of buying, should be OK to find and do. Perhaps the best lesson is for the Seller- 'don't be greedy, it may cost you in the long run.' If you would like no nonsense, "don't care if it offends you" advice on how to price your home to get top dollar out, give me a call. Besides, have you ever seen how much exposure we are giving our Sellers on our St George real estate home page?!