Tuesday, May 05, 2009

National and Local St George Utah Real Estate Update

National Real Estate Update

Will the federal governments mortgage aid program thaw the market? Several reporting facts will help paint a picture and keep you informed regarding the market at large and in how St George Homes for Sale may be impacted.
  • According to Moody's Economy, third quarter of 2009 11.8 million U.S. borrowers owed more on their homes than their properties were worth and in the end of 2009 it rose to 13.6 million.
  • Government plan persuades mortgage servicing companies to ease up on borrowers who are in financial straits so severe that they risk losing their homes.
  • Government backed mortgage giants, Fannie Mae and Freddie Mac, offer to refinance loans for millions of borrowers who may owe more than their homes are worth, even if they are wealthy enough to afford current payments.
  • Zillow.com reports 142% increase in number of consumers looking for a loan, 60 percent involving refinancing.
  • National Association of Hombuilders reports affordability skyrocketing as home prices decline. Wells Fargo Housing Opportunity Index reveals in the third quarter of 2008, that 56.1% of homes sold were affordable to families earning the national median income of $61,500, while in the third quarter of 2008 that goes up to 62.4% being affordable sold homes.
  • California sales had a dramatic upturn of home sales this past winter, although it was accompanied by a corresponding dramatic drop in home prices. A home that costs $254,350 now, used to cost $427,200 in January of 2008. California is on pace to see 624,940 homes sold this year compared to the pace of 311,160 last year this time. "The strength in California home sales in recent months signifies that the market is gradually working its way through the large numbers of distressed sales that have followed in the wake of the troubled mortgage problem," says California Association of Realtors President James Liptak. He adds that affordability "is now at its highest since the start of the decade."

St George Utah Real Estate Update

St George real estate has had a significant upturn in the amount of offers being brought onto foreclosed properties as well as other resales. California used to be a good reflection of how St George real estate itself would be doing as well. Well, a definite increase in buyer activity is felt by many realtor's, not just buyers realtor's, but several listing agents here at RE/MAX First Realty. Particularly first time home buyer price ranges are heating up with activity. You will find Brian Habel on the roster, able willing and qualified to help you with your real estate needs. Also, please avail yourself to getting prequalified for St George home loans, before you waste too much of your time.

1 comment:

Joel Carson said...

The market will surely thaw. I like to look at this time as a state-wide clearance sale. Property is on sale in Northern Utah too. That doesn't mean people should give their homes away . . . but it does mean that every sale has potential to impact our economy. As people get brave and make significant investments at seriously discounted prices, the wheels of our economy will be oiled once again.