National Economic News - "Tipsy" Tid Bit Clips - Affecting the Local St George Market
The Securities and Exchange Commission (SEC) recently charged Goldman Sachs financial giant with fraud. Knowingly making fraudulent deals surrounding sub-prime mortgages while obtaining insurance or bets against them, that they would 'go south', allowed them to become richer in the process- what has been called Collateralized Debt Obligations. These allegations caused Stocks to plunge lower, which had the trade off of bonds being in demand and being bought, helping home loan rates to improve.
Speculated high points in the economy are being downplayed. For instance, there is speculation that improvements in a business bottom line may be due to having laid off workers, thus possibly contributing to a worse problem. It is speculated that inflation has been overly downplayed in order to keep government incentivized lending and interest rates lower.
There is some good news lately on the housing front with new housing starts increasing. Yet it might be overrated with anxious builders speculating too much on demand. It is hoped that housing starts will be more in relation to demand and not increase supply on an already supply oriented market.
It is suspected that the Existing Home Sales Report will also bring some positive news.
St George Real Estate
In St George, I think some investors are surprised at how unavailable some of the inventory they are looking at really is, when it consists of many short sales perhaps, that look RATHER to be tied up with offers on them. This can contribute to making the rest of regular inventory look not as attractive. Bank Foreclosures are lapped up in the beginning month if they are decent deals. Some strategy actually seems for the bank/listing agent to price it competitively enough to spur on a "bidding war" (couple offers to multiple offers). They try to get just the right level of low price to get lucky with it.
Go For It- Brian's Hot Deals!
On the other side, many buyers shy away when that is what other buyers thought too and the one or two that did go toe-to-toe, may have found that it was not pushed up that far in price, even in the "bidding war" and actually made out pretty decently. This is keeping prices down in the comparable's along with more short sales that are going through. As such, the serious buyer is advised to get onto Brian's Hottest Weekly Deals list if they'd like to participate in being educated about where and how fast some of these new hot deals do and can go, in order to participate in getting one of these good deals yourself.
Remember that generally bad economic news improves the stable investment into bonds and thus helps home loan rates, where as good economic news promotes investments the other way and leads to worsening interest rates. Many think that interest rates are bound to go up and as such, variables towards making your loan affordable, might lead to this time, now, being as good as ever to get in on buying St George Real Estate.