St George Utah Real Estate - Market , Buyer Tax Credit Only Worsened Things
St George Utah real estate has experienced a bit of increase in sales and activities surrounding the buyer tax credit. Now that it is gone, sales are down. It is argued now that the buyer tax credit did not help the market, but only served to worsen it. Just last week, the NAHB Housing Market Index came in worse than thought and shows housing to be at a seventeen month low. Now, if the buyer tax credit stands not as a booster, but its own blip on the radar screen, it only served to possibly raise prices a bit on real estate or give sellers the wrong idea, through short term increase in sales and demand, when in reality those prices have to be reset down to reality meeting the dilapidated shape of the housing market values. In other words, a void or softer period in the market now exists, potentially pointing towards billions of dollars wasted. Building Permits and Housing Starts were also lower than expected.
If you will check out our latest real estate update regarding St George Ut real estate market statistics, a decline is noticed, where we have a lower amount of sales now. This appears to confirm that what is being said for the national real estate market, is also true for our local St George Utah real estate market.
One syndication article I get says, that the bottom line is that the labor market is the foundational bedrock of our economy and infers that job growth is the most sustainable way for our [real estate] market to recover. Initial Claims, a leading indicator for the health of the labor market is being pushed in the wrong direction. Just how then, the various factors of the real estate market pricing affecting the labor market or how the labor market is affecting the real estate market is explored in our new article called "Is This a Good or Bad Market?". The anti-business regulatory environment is at least partly to blame for deficiencies in the labor market.
Interest Rates Could Rise Real Soon
Home loan rates are at historic low levels. If one thing can really sway things it is inflation, which is said to be on the horizon, the arch enemy of Bonds and home loan rates. Both the Producer and Consumer Price Indexes were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly. Now could be just about the best time to buy.