Monday, March 29, 2010

Interest Rates Notification

St George Utah Real Estate Interest Rates Notification

We wanted everyone to know- interest rates are going to go up, not making it any more affordable to buy a St George Utah home for sale.

As part of the government stimulus package to stabilize the housing market, the Federal Reserve has been buying up Mortgage Backed Securities (MBS). However, they have stopped doing that and have announced several times that they would be pulling out of the business of manipulating them and becoming now, instead, a seller. The announcement is that on March 31, 2010, they will remove the demand they have been creating as buyers and will instead become a seller of MBS, putting more supply into the market. This in turn will have the natural effect of pushing Bond prices lower and therefore home loan rates will go higher.

Word to the wise, for those on the precipice of buying anyway, do not procrastinate buying your home soon. We wanted you to know the news, to keep you informed, so that you could feel as comfortable as a baby in a blanket toward moving ahead now, in purchasing your St George Utah Real Estate.
It is not very often that what is going to happen to interest rates is as predictable as they are now. Go to Brian's current blog on Active Rain network for Brian's St George Utah real estate market predictions.

Tuesday, March 02, 2010

St George Utah Real Estate - Some Sluggishness

St George Utah Real Estate Market Trend

I just wanted to give an update on the St George Utah Real Estate market, on the most recent numbers rendered through February 2010, that I've noticed. As somewhat expected, January and February 2010 have a little bit of a slump to them. See the graph below.

This is a little bit of surprise I think to a lot of agents because a flurry of activity has been noticed. I have, pretty much, the most real estate traffic on my website of anyone I know right now, and the numbers of people hitting the website went up considerably. So, it is safe to say, that while a flood of activity has been present, it was not enough for many of them to "pull the trigger", so to speak, on an actual purchase, at least in January or February of 2010. However, as I talked recently with other Realtors across the country regarding increased activity due to the Buyer Tax Credit Incentive, it could be that many of the "heated molecules" could just well enough be like the "popcorn popping" because we all know the buyer has to identify something by April 30, 2010. Brush up on who qualifies for the home buyer tax credit incentive 2010.

Now, this is just me, but if I was a buyer, I would not wait one minute, because every day that gets closer, I predict that the closer we get, perhaps the less good deals that will still be available. It really does not take rocket science if you are a realtor to figure it out. Right now, even with pretty good inventory levels, it seems like there is only one or two real good "cherries" in each price bracket that is ripe for the picking. Doesn't take long when the heat is on for them to get "picked" folks. So, word to the wise, don't put it off IF you are going to get in on a piece of St George Utah real estate. Please call me now at (435) 674-3600!

As you will notice, in the graph above, the number of Solds in January and February of 2010 is a little less, than what we have been doing. On the opposite side, the number of New Listings really went up in January. However, if you will notice that a more noticeable pattern may exist generally speaking, in a down market, that last January's New Listings seemed to shoot up too and then a lot less in February too. Since that time, active listings inventory, has been trailing off a bit.

The last quarter of 2009 marked the lowest inventory levels as to the ratio of actives that were selling- the sold rate to actives, of listings on the market- see chart below under Months Inventory.

St George Area Absorption Rate
Basically, there is a table below that does show how much inventory as to projected sold rates of how long that inventory would take to empty the market. Please realize that the function of the last column of inventory has to do with absorption of that current months rates of actives to selling ratio. January and February are therefore probably skewed a bit, as months that are slower than normal. At very least, we have talked about how that seems to be a pattern now, as to last year as well. We hope that this has been an informative update on the St George area real estate market. If it has, please use Brian and call him any ole time. We also have some general trend info and links available on our St George Ut Real Estate stats page.