Monday, September 29, 2008

National Inflation Hedge on New Construction Should Stay Home Prices - St George Real Estate

National Inflation Hedge

I just read an interesting article out of Realtor magazine, October 2008 issue, by Lawrence Yun, chief economist of the National Association of Realtors. He maintains over the long term home prices tend to rise with commodity prices. Commodities like oil, copper, steel etc. are the ingredients going into homes. These hard costs, unlike other kinds of investments like stocks or bonds, ground homes into a fundamentally different kind of store house of goods and value. And with the Producer Price Index for construction being up 39% over the last five years, then sooner or later, the increasing costs of raw materials is bound to push home prices higher. He asserts that with the risk of rising construction costs on the horizon, "now is a good time to buy" becomes insightful investment advice, not just a marketing catchphrase.

At very least, Yun concludes that commodities has been a time-tested way to turn inflation's lemons into lemonade. Therefore, homes being a basket of these materials is bound to be a good investment inciting that home prices will go up over the long term.

St George Utah - Homes for the Future

St George Utah has been ranked now as a retirement hot spot and destination for all kinds of folks and businesses. Take all the flocks of 'snow bird' like-minded people just below us in the Phoenix and Mesa Arizona area who besides taking advantage of good city planning and infrastructure have nothing to hold over on St George Ut real estate more illustrious appeal involving red rock, lava rock, and red dirt and desert meets mountain or Zion National Park. It is a no-brainer, just the masses have yet to find out. But finding out they are.

St George is situated along I-15 and many trucker and tourist will tell you all about this "hidden" little gem. Not to mention the people actually smile at you when you are going to stores and what not. It is more family friendly (some do point to the towns history as a basis for its good community values), business friendly and the spirit of entrepreneurship has yet to perhaps catch fire like it could, to help fuel an otherwise possible top heavy, second home and retiree economic base. Even so, I may not know what I'm talking about, when retirees bring there savings with them and they spend money, not to mention that [under the circumstances] not only is Sun River, St George's only fully featured retirement community, going strong, but more exclusive ritzy places like Entrada are having there best year yet. So, money continues to come into here, even though we've otherwise dried up particlularly in the larger home market, which used to have a vitality when Californians could get 'bank' for their homes, come here and settle in style.

Yet, I speculate that the commercial sector has had some vitality, which should help, maybe towards keeping the rest afloat even through difficult times. So, all in all, taking the chunk of commodities or building materials that have been part of St George's being just priorly over-built with new construction here -into- St George's economy, then buying low, just might have been "the" low as "the good time to buy" such that inflationary 'commodities pickers', could try their hands at.

Prices needing to come down... that needed to happen, but I've even heard of an appraiser pensively strumming a thought into the pot that he thinks we've reached a bottom here in the St George area. I'm a little thinking we are "scraping bottom" and just like the ship could run aground, there also might be some brief deluges of slightly deeper waters. However, the slightly deeper waters may be ever so slight so as to offset any forestallment in "looking" to buy in the market based on "deal-minded, opportunity, or selective buying, being always a bigger difference on price than any slight dip would have given you anyway.

When you are ready, I'd love to help. I have a special shopping service that really puts you in the driver seat, not to include I can configure the sending to you of all Bank Foreclosure homes. Just give me a call anytime or shop all the listings now.