St. George Utah Real Estate

Distressed Sales, Home Ownership, Inflation Trap & The Four Horsemen of Real Estate, St George Conclusions

2009-05-27T08:18:00.000-07:00

Real estate in St George Utah seems to be picking up. But while it is perceived by many a realtor, we question why some would want to stay sitting on the fence. The reluctance may be understandable when you look at the national scene. The economic roller coaster continues. Several factors are involved in this mixture, which we evaluate below. Then we summarize with commentary involving the "Four Horsemen of Real Estate", termed by Dennis Torres. Only the 'fourth horseman' is made of iron and like a freight train, although in the distance, is coming right at us- it is called inflation that comes from the weakening dollar. High interest rates accompany inflation.

Distressed Sales

Distressed sales makeup 45 to 50 percent of home sales. The passage of economic stimulus legislation offers hope for market stabilization.

Home Ownership

Home ownership now a days is like raising children. Minor or major tantrums are overlooked by the overall long-term gains in good character development. OK, not a good analogy sometimes, but it works good in theory and in practice overall. To counter my dose of optimism with realism, the National Association or Realtors (NAR) recently analyzed Federal Reserve data and resoundingly show how home-equity snapshots paint a bright picture. My reporting comes from an article titled, "Homeownership Still Pays", by Robert Freedman out of Realtor magazine.

First, home ownership wealth exceeds that of renters by a factor of 50-to-1, the main difference being home equity, of course. What it doesn't say is that earnings also come from working, not just leveraging appreciation in ones home. However, the rest of the article does speak to home equity gains, which is where our real focus is.

Second, even with household's who have owned only since 2003, home equity gains are the rule rather than the exception.

One may ask, how can it be the rule when we've had huge widespread depreciation. Well, if you bought in the middle yes, but ride it out and even in hard hit areas, overall the 10, 15, and 20 years outlook has uniformly enjoyed strong equity gains despite the recent downturn. So much so, are even the 5 year gains across America, that home ownership as a rule, is still a viable and better served ambition over renting. Freedman summarizes, "The data clearly shows that home ownership remains the biggest store of wealth for the typical household, even when markets are buffeted by some admittedly very rocky years."

One argument central to reporting on the economy, that I will take and have gleaned is thus: The housing market, most industries, and the economy are cyclical.

Another consideration bolstering ownership might be the fact that the commodities market involving construction materials to include finishing products has not depreciated, such that value in the materials inside homes sustain themselves.

Now or perhaps in the near future, if the dollar weakens more, it may take more of it (the dollars) to equal that value. Getting that attached number right given inflation may become more a matter of pricing and valueing what is there, rather than a matter of home shoppers speculating on the market, given higher interest rates.

Here in St George Utah, although many distressed sales congregate down in the lower price ranges, I've seen a lot of first time home buyer activity with product being sold, lead to inventory or options shrinking. I'd like to predict that many of these lower price range homes, even older homes, will come to hold there value well, such that even -fixer upper- will begin to become a friendly term again.

If you need a good St George home loan suggestion on qualifying and at what price range I do suggest consulting first before waisting time looking at too many homes. Even some multiple-home investors have become surprised by new governing guidelines, in not qualifying, although it has been made much easier for first time home buyers.

Inflation Trap & The Four Horsemen of Real Estate

Inflation
Lawrence Yun, Chief Economist for the NAR, in an article titled "Efforts to Spur Growth Can Backfire", cites how people are buying less, such that government action to ease the "credit crisis" or loosen stagnation and restore consumer confidence is warranted. However, the Feds infusion of money..., although Yun does not explain how, except to ...explain it like a gas pump- that "if the pump stays open for too long, the result will be upward pressure on prices".

Feeding into our cyclical idea, he does cite history saying that in the 1970's and early 1980's property values rose in tandem with consumer price inflation. Also, while property owners would be clear winners, ultimately buyers will lose because high inflation automatically brings high interest rates. Wait, because nobody wins if consumers can't buy that home of yours because the cost of money is at too high a price or high interest payments. Yun believes that inflation is not inevitable. On the other hand a lot of the government spending is long-term debt, he says. Hello, has anybody checked the national debt lately?

National Debt
The national debt is a conundrum that Frontline with PBS tried to tackle with interviewing several experts on the subject in March of 2009. The special was titled "Ten Trillion and Counting". One noteworthy concern, Paul O'Neill says, we have a bigger problem of $53 Trillion in unfunded liabilities like Medicare and Social Security that is floated debt that the government could possibly default or reneg and send us into what he calls, 'making this last financial crisis look like child's play'. The below is a more moderate response from the same program.

Maya MacGuineas, President of the Committee for a Responsible Federal Budget says:

We know that, right now, if you look forward, the U.S. is on an unsustainable path. What you don't know is when our creditors ... will say, "No more." And that could come at any moment, just like the bursting of the housing bubble almost seemed to come out of thin air. Nothing really seemed to trigger it.
... Is there a chance that our standard of living would decline if this problem were to continue to grow?
The Congressional Budget Office recently came out with a report that says if we stay on the path that we're on right now, our economy will start to shrink. That was almost inconceivable a few years ago. ... The main problem is that we've promised away so much of our economy. We've made all these promises through future programs that we will put our resources here or here or here. That means we've taken away the flexibility from our budget, and we've precommitted resources in ways that will not help grow the economy. And younger generations of workers are really going to pay the price on that.

Weakening of the Dollar
The major concern of many national economists is that the government can't continue to print trillions of dollars to pay for wars and various industry bailouts without devaluing the worth of the dollar.

The Four Horsemen of Real Estate
In the June 2009 addition of Realtor magazine I find one article, by Dennis Terres (Pepperdine University's real estate strategies director of real estate operations) very intriguing. He predicted the downturn in the market and its severity, almost to a "T", when we know many did and would have scoffed. Central to his argument was that the housing market is cyclical. Dennis almost hauntingly pursues his 'cyclical argument' conclusion to another end, saying that he also thinks we are overdue for rampant inflation. Dennis describes this lead up in terms of four horsemen after the four horsemen of the apocalypse.

The collapse of the sub-prime loan market followed by losses in the prime mortgage market. 2008 saw an 81% increase of foreclosures over 2007. Economic stimulus legislation offers hope for stabilization.
High unemployment, to the tune of 8.9% in April 2009- the highest level in 25 years. No jobs equals, consumers less likely to pay bills, including mortgages.
Consumer debt. U.S. consumers carry $900 billion in credit card debt alone, according to the Federal Reserve.
Rampant inflation. This is still on the horizon, but many believe it is inevitable. Accompanying inflation are high interest rates.

Conclusions

I guess this would all be a hodge podge without some kind of conclusion and this is kind of my predictions. My predictions will follow Dennis Torres', that we will have a period of stagnation as to real estate prices. I believe it to be a bit shorter than his predicted 3 to 5 years. After which we will see prices climb again and a brief scenario of prosperity. Then I think we will see a weakening of the dollar to become more pronounced leading to rampant inflation. To say it more moderately and to repeat using Maya MacGuineas, President of the Committee for a Responsible Federal Budget, "...we've precommitted resources in ways that will not help grow the economy. And younger generations of workers are really going to pay the price on that. "

The implications on the housing market will be, I believe, to ascertain where value really lies, that home ownership while cyclical, overall contains its own value that proves useful to building some equity or wealth, although accompanying higher prices on a weakened dollar, none the less equals real value. As such, before interest rates rise, if it were me, I'd get in now, while interest rates are low and also in utilizing the next couple years to find a 'permanent' home because it might become awfully expensive to move later, altering your interest rate and payment schedule, being drastically higher.

For retirees, I'd get in now, before house prices go up, where you think you'll secure that final resting place AND I think St George retirement communities are a good place for that. If this article has been of some value to your thoughts toward this, I'd hope to have won your business to be your area St George Realtor of choice.

The thing I'd have people hear about the St George Real Estate Market is this, and I admit it is subjective experience at this point, even as one realtor to anothers predictions can vary in the same city, as well as individual experience, but I do think that the choices on the market are becoming slimmer for either finding that really good deal or even in finding that home or town home that is agreeably fitting ones preferences.

Some troubled waters include how to negotiate the all-complicated Short Sales, "mirages in the desert" (the lower prices are not real), that are inundating the market. Response times to hear back on your offer typically range from 2 to 4 months. Knowing which banks are good and which are bad for getting a Short Sale done, can prove invaluable. While very few fit that category of good now, I think that it will slowly expand as they 'have to' (boy it has always been relative to them and their schedule) get better at it IF they want to compete, mainly because realtors have listed legion, in the ACTIVE for sale market. Foreclosures or REO Bank Homes are much easier to deal with in getting a response to ones offer, usually within 48 hours. We provide a comprehensive list and email updates on area St George Foreclosures. Don't miss out and sign up here to get your 'individually tailored' list now. Or you can shop for all St George Homes for Sale.

National and Local St George Utah Real Estate Update

2009-05-05T11:23:00.000-07:00

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.

How do Property Taxes work for the St George Utah area?

2009-04-09T15:17:00.000-07:00

How do Property Taxes work for the St George Utah area? Well, I recently emailed a buyer regarding it and here is what I wrote:

The tax rate is as approximately, .55% (or a 1/2%)per year if it is your primary residence and about double that if you are not (1%). Now, I'm not sure about what values they get derided off of because people were complaining about too much taxation when the values of their homes went down and they were going off estimated values much higher than the new values would be. Some I've heard submit for new value, don't know if that is what can be or is done at the time of the sale or not or if it goes off when it was yearly assessed at a particular time.

I just got off the phone with the Assessor's office to get the full scoop as I've often wondered. My above information is correct. But the house values are not generally reappraised or in other words, reassessed, at the time of sale. Rather, they are off the assessed values off what the county has on record for assessments Jan 1 of each year. So, homeowners do need to... can bring in escrow statement in showing value and depending on the time it is brought in..., taxes reassessments preliminary deadline closes middle of May, so if you brought it in before that time, it could be assessed towards this year. Taxes are due at the end of November, for that prior year- paid in arrears. If people want to pay monthly they can contact the Treasures office and arrange that with a coupon book.

Public notice is given to all St George homes and property owners at the end of July what the taxes are or will be assessed at that year. This can precipitate complaints or petitions in what is subsequently a Board of Equalization that meets at end of Aug and beginning of Sept. So, if a home owner had it appraised it in June (or yes if there has been a sale or a couple comparables on their street sold, could petition at that time), then could go into the Board of Equalization for a look at it, and they could reassess regarding it.

Have a Great Day,
Brian Habel
RE/MAX First Realty
Office: (435) 634-5479
Cell: (435) 632-0250
Home Office: (435) 634-9845
All the Listings: www.SoUtah.com

Stimulus Package Details 2009

2009-03-09T08:44:00.000-07:00

Economic Stimulus Package 2009

The following information below details briefly some great incentives that are being offered to buy this year of 2009. For official news and getting it from the source you can visit FinancialStability.gov regarding Obama Administration’s strategy to strengthen our economy.

$8,000 Tax Credit for Home Buyers
The following was reported by a very reputable Lender (call him for more info):

EXCITING NEWS!
It is true! There is an $8,000.00 refundable tax credit for anyone who has not owned a home in the previous three years, who buys a home between January 1, 2009 and November 30,2009. This means that when you file your taxes you will get an additional $8,000.00 with your refund. If you owed taxes your taxes will be reduced by $8,000.00 and if there is any left over you will receive it in the form of a tax refund. MORE GOOD NEWS! The $8,000.00 does not have to be paid back provided that you keep the home for at least three years! There are some income limits and the amount will be reduced if you file jointly and make more than $150,000.00 per year or file singly and make more than $75,000.00. Please call me with any questions. Locally you may call at 674-1090 or toll free at 877-674-1090. You can email me at stevestout@sgimortgage.net
PLEASE REMEMBER! Interest rates have been inching up since the 8th day of January. They are still historically low but notwithstanding all of the government's efforts, the rates are going up slowly but consistently.
Happy House Hunting!

Home Owner Affordability and Stability Plan

Another item that can be important toward forestalling the predicament that some home owners find themselves is part of the stimulus package. It is aimed at making payments affordable for those that would normally be having trouble with their interest rates jumping to troublesome variable rates that leave them incapable of making their payments and being forced to move and give the home back to the bank in a loss.

Current rules have made it difficult for families who own less than 20% equity in their homes- they have had a difficult time taking advantage of historically low interest rates. People who have conforming loans that are guaranteed by Fannie Mae and Freddie Mac are those whom this initiative pertains to. This new plan enables them to move to a new loan for up to 105% of their homes value. This could help lessen the number of foreclosures here in the St George Utah Real Estate market.

Higher Non-Jumbo Loan Amounts Extended

Below are some key points about this higher loan limit extension, announced by the Fair Housing Finance Agency:

The non-jumbo, middle tier of home loans begins at loan amounts greater than $417,000 for single-unit homes.
The top end for this tier is $729,750 for single-unit homes.
The rates for these loans will again be slightly higher than conforming loan rates, but less expensive than the standard "jumbo" loan rates.
This higher limit on the non-jumbo tier is available in 250 counties across the United States. (I don't think it applies to Washington County- call Steve Stout at (435) 467-1090 to check and find out for sure.)

Stimulus Funds for Utah - Utah Housing Corporation $6000 Credit for Buyer’s

Preferred Lender, Steve Stout has sent this update regarding Utah Real Estate on March 18, 2009:

Hello – I just wanted to give you some information regarding the new Utah Housing Corporation $6000 credit for buyer’s. This is part of the stimulus funds and the state of Utah was given 10 million dollars for this purpose. This $6000 credit is for NEW homes that are unoccupied and never lived in. There are income limitations at $75000 yearly for single people and $150000 yearly for joint. It is not limited to first time home buyers. It is in addition to the $8000 tax credit that is now available for first time home buyers. It is not official yet but this is what we know so far.
More info to come……..

Thanks,
Steve Stout

To update Steve has since told me that it is on the desk of the governor to sign, so as soon as he signs it (SO IT IS NOT IN EFFECT YET). It will be available to buyers as if buying for their primary residence only, to occupy within 30 days after purchase. For official news you can visit the official Utah Housing Corp. page governing requirements. Locally, for the St George Utah area, Steve Stout with SGI mortgage is equiped to make sure you take advantage of these incentives at the time of your purchase.

Initial St George Utah Real Estate Predictions for 2009

2009-01-05T14:35:00.000-08:00

Our local St George market has been hit with a little kick-up of buyer interest and activity from my subjective viewpoint in talking to several realtor's and in getting their views on it. One realtor showed property every day through the holidays except Christmas day. Another one who brought a buyer offer on a home I had listed and that I ended up selling through him as the buyers agent, spoke about a huge increase in what he had been seeing in home buyer interests, although harder still to get buyers to commit to something.

St George Utah Real Estate Predictions for 2009
A recent prediction on the 2009 market was sent to me by my Lender, Steve Stout with SGI mortgage who has been doing mortgages for 15 years, and does not lack for business. He remarked to me, 'that these Wells Fargo analysts usually know what they are talking about'. It basically said that some pent up buyer demand is awaiting and that the only thing really forestalling a pick up in buyer activity is when the government dragged out for so long deliberations in bringing excessive attention to "the bail out", and that otherwise it was a huge factor dampening buyer confidence. But with the return of good interest rates and the likes, they predict that the housing industry, will be a goodly part of the impetus for restoring 'consumerism' (as in helping to spur on the economy at large) starting mid 2009. This is one prediction reportedly from Wells Fargo and some subjective viewpoints based on some research, here from the desk of Brian Habel.

That being said, could it not just be the very best time to buy? Prices have reached an all time low following one of the greatest amped up building and housing cycles represented fervently here in our local St George market.

Feel free to visit my site and shop all the listings at St George Utah Real Estate. Let me, Brian, represent your interests. Remember, it is the 'red carpet' when you buy and no burden is put on the Seller or Buyer by having your own agent. With realtor commissions, the listing agent splits his/her commission on all MLS properties from all the real estate companies. Either that or you as the buyer will most likely have the same agent that represents the seller, representing you- then the listing agent pockets both sides. Did you know that? Why would you do that in a market like this when the buyers and their interests have the clout? Plus, you might as well utilize that 3rd party negotiation set-up, provided you for free in the system, as you can often heighten better terms for yourself all around as the buyer. Besides, you will need a realtor to show you all the listings you are interested in, not just the one with the sign in yard. Feel free to contact me, as I can blissfully say without hitch- I'm free! Learn about Brian, your St George Realtor and see testimonials.

New and Existing Home Sale Projections - St George Real Estate Correctly Valued

2008-11-03T13:15:00.000-08:00

Economic.com gives us some insight as to where we may be headed as far as real estate sales and values are concerned. First of all, here in St George Utah, home prices are calculated as "Correctly Valued" as to price to income and rent ratios. The following graphs on St George Ut Real Estate Market Statistics will predict that the bottom has arrived for both new and existing home sales and as well as the predicted climb out of that bottom in appreciation of values.

The New St George Regional Airport

2008-10-15T10:43:00.000-07:00

The new St George Regional Airport will be an economic catalyst for so many businesses and its arrival is planned for around Nov. 1, 2110. The new airport will likely attract companies looking for a place to land. The current St George airport creates nearly 1,000 jobs and brings in nearly 30 million to the local economy. The new airport manager was reported in a recent article from Utah Business magazine entitled Taking Flight as saying, "This airport will be able to accommodate aircraft, freight, cargo service...these are integral elements in the community". The new runway will be 9,300 square feet, larger than the current one at 6,600 sqauare feet, in order for larger aircraft to land. The new airport will serve as an anchor to Southern Utah's and St George Transportation system.

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

2008-09-29T07:45:00.000-07:00

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.

Variables Interacting to Create the Current Real Estate Scene Nationally and Locally in St George,Utah

2008-08-05T12:11:00.000-07:00

Housing and Economic Recovery Act of 2008

President Bush signed a massive housing bill on July 30, 2008. The Housing and Economic Recovery Act of 2008, this promises to help thousands of struggling homeowners and stabilize the financial market. One of the bill’s key provisions gives first time home buyers a $7,500 dollar-for-dollar tax credit. This should become available to residences on or after April 9, 2008 and before July 1, 2009.

Another piece is that at the end of August 2008 there will be no 3rd party down-payment loan assistant programs that will be able to kick in and rescue that portion of being able to help some buyers get into a home. I'm not sure how broadly or how many this affects because whenever I came across these types of programs I thought they were a loop hole to get around requirements, but none the less were legal and as such have been viable ways of getting into a home. If you're doing that, you better do it quick because it is about to end. I think if that was my only way to have gotten into a home, I might have considered it myself. At last, I think my premonitions about it being a way to get around the requirement, might have been right when it comes to Congress having voted it out. I believe the Act enacts these changes and to the jumbo loan limit discussed below, starting Oct. 1, 2008.

Jumbo Loan Limit as Applied to St George Utah
Now, a deterrent for buying more expensive homes for many home buyers has been the fact that when buyers lend money over $417,000 they take a hit on the interest rate being higher. Well, another part of the Act of 2008, permanently increases the cap guaranteed by Fannie and Freddie on the size of mortgages, to a maximum of $625,500 from $417,000. Previously, this jumbo limit was only applied to certain parts of the country and while northern Utah has been getting the benefits, Washington County has not been, but has remained at 417K. Having it this low may have helped to bring prices down, so the benefits can be looked upon as relative to whom we'd like to give them to, the buyer or seller. However, this legislation will make mortgages more affordable in those upper price ranges. This might have the affect of curbing some of these homes out and away from foreclosure when the mortgages are now more affordable on them.

(For example, I have a beautiful home in Heritage Fields listed for a builder whose price hovers possibly just out of reach of the prior limit and I know the Seller is going to be glad as this was pressuring him earlier to perhaps have to drop it a good 50K to make it feasible for a loan in this market. That would have forced him into foreclosure he believes as he already is selling it for 50K below what it took to build it. The house is upgraded to the hilt and the best looking house in its class, but even then few buyers swim by ever in that price category that can seriously afford a home that expensive, although the activity has doubled on it for some reason. It has 3229 SF, custom travertine, inlaid marble and granite galore, 2 story with each 10 foot ceilings, 6 bedroom and 5 bath, listed now at $469,900.)

To have this increase by a couple hundred thousand or so, this could be the biggest boost to bigger and more pricey home buying here locally. Previously, these higher-end homes have reached an all time low in demand, leaving many builders and some sellers in stagnation if not in dire straits. This stimulus could also become an indicator for remedial affordability in the category of jumbo home loan ownership.

These are only parts of what The Housing and Economic Recovery Act of 2008 covers as an overall stimulus package signed in by Pres. Bush and passed by Congress. To see what else the Act covers see this CNNMoney.com article on The Housing and Economic Recovery Act of 2008.

Banks Toughen Terms on Loans

According to the Wall Street Journal, banks are imposing tougher lending terms across the board for both consumers and businesses. Banks are being tougher on credit score requirements and are reducing credit limits on card loans. Home equity lines of credit have also been tightened, as reported by 70% of the banks queried. 60% tightened standards for prime mortgages and 75% for nontraditional and sub prime mortgages. 80% tightened Commercial lending standards.

St George Mortgages

Locally, for St George Mortgage and Lending needs, I've relied heavily on Steve Stout with SGI mortgage as a source for top notch professional advice with a real good bead and pulse on the market and also consultation for many buyers. He told me that for people he's tried to pre-qualify for shopping for a house, they've needed to not only show good credit, but that they've needed to also show the cash flow income to substantiate what they are trying to do. Off that he is able to help people set realistic price ranges to shop in. Why find out later and waist all your precious time?

With 15 years in the business I not only find him experienced and knowledgeable, but he is also about the nicest and most decent guy I've ever met. If you want him, you can have his number: (435) 467-1090. If he helps you, pay attention as a few times he really nails it on the head. I first turned onto him when meeting him at a Closing [table]. This was back when he looked to me like he might be driving a tractor (as if I ever thought that, just that he was speaking it different than what everyone else was saying) or a horse (as in being a real live cowboy). I couldn't tell which at first when he did his old shake the head thing when talking on the subject of "option loans for everyone". I've since learned he is a real live root en toot en cowboy. Call if you think I'm just ad libbing and you can discern for yourself. And those mortgage professionals make more on those option loans, you know that don't you? Mortgage loans are not one size fits all. But if you want it from the 'horses mouth', for straight shooting, give Steve a call.

Real Estate Projections for the Washington County Housing Market

Is the Washington County Housing Market Stabilizing? That is a great question. According to the total sales in June 2008 (to include homes, lots, and commercial), it has had a slight decline from December, 2007 to March, 2008 and is now in a slightly upward growth pattern. Job growth in Southern Utah has been on a slight decline up to the end of last year. Since the first of this year the job market has been on a slight, but steady increase.

Generation Y

The Generation Y buyer is 26, 3 years younger than the Generation X or baby-boomer buyer. Generation Y is born roughly 1965 to 1978 and represent a very Internet Generation, Echo Boomers, Nexters and the Digital Generation. Also they are the MySpace and Facebook generation. Favorable rates make it easier in a buyers market to facilitate research for these people. They are also confident in their buying habits and are, and will be, buying homes. They are OK with getting away from the big back yard, they look for newer and low maintenance, are more environmentally conscious and look for permanence on the outside of the structure, while maintaining more flexibility for renovating on the inside to evolve with technology.

Foreclosed Homes and Notice of Defaults in St George, Utah

Here locally, St George Utah Foreclosures are slightly increasing. Notice of defaults, of people that are reported as not making their house payments, has remained steady of about 180 per month. The implications from a realtor perspective for me, have been that with some price niches or outlying areas (like fast paced subdivisions that overbuilt and had inflated pricing), it is increasingly more difficult to think about having a home your putting an offer on actually meet appraisal. In those niches or outlying areas, not only is there relatively few comparable sales (has to be within the last 6 months) to base value off of, but of those few existing comparables, if all are short sales or bank sales, then the law of conservativeness reigns supreme for appraisers and banks, irregardless of equality of perceived value transferring outside that subdivision to the market at large. To think about how to get a home under contract to appraise at what you currently have as an agreed upon purchase price then could be difficult. In some new outlying areas, where price rush appreciation was the rule of the day, then parallel subdivision price point comparables are becoming scarce enough to push prices even further downward. Implications for many Realtors are that they will not just anxiously "list" a home anymore. Rather, they will take only [to sell], "saleable listings".

Renters More Reluctant to Buy

Mark Obrinsky, chief economist with the National Multi Housing Council (NMHC), reports a significant slowing of outflow of renters into home ownership. Of the survey respondents giving information relating such, 80% report a decrease in the number of renters leaving to become homeowners. The survey indicated that more renters were moving out of investor-owned properties and into professionally managed buildings, much of which was forced by investors giving up the properties to foreclosure.

National vs. Utah vs. Southern Utah Real Estate Forecast

About 50% of homes nationally are selling in an appreciation cycle, which might indicate about that much being sold after or in depreciation mode. Overall, Utah Real Estate appreciation has fared pretty good in comparison to the national scene. However, Southern Utah Real Estate has not fared as well, so our forecast on the market then is also a mixed one. It really will depend on what part of the market. Mortgage requirements are being tightened, although more people are becoming eligible at the same time, particularly the first time buyer segment. In California, for the First Time Buyer the percent of home buyers who can afford a home jumped from 26 to 44 percent for this same time a year ago. The index is based off an adjustable interest rate of 5.65 and assumes a 10% down payment.

On the other hand, a lot could depend on the overwhelming nature of reticence on the market with so many foreclosures that do not necessarily ear mark confidence in buying as well as fears of homes not appreciating when you buy them. This can help to stave off a lot of people. On the other hand, because so many that could have bought, have held off, perhaps we've reached a bottom that could turn the tide. Our projection at SoUtah.com will be that we really kind of got out of sorts with inflated appreciation and enamored with speculators and investors, such that the working class opportunities may not be large enough to compensate with the needed money in the system to support it all. On another note, if people are freed up to move again, there could be enough enamoring again with our area, to help pick us up. Chief economist Lawrence Young has said with the National Association of Realtors (NAR), that while the market is flattening now, he anticipates some improvements in the last part of the year. With St George Real Estate, we might normally expect the same thing, except that some price range niches that have not seen enough action to retain anything but Short Sale or Bank Foreclosure sold comparables. This may still suppress prices enough to forestall any type of noticeable change.

Even still, I've always thought that it is as good a time to buy in St George, although as selectively as one can do, that even so, it will take a good couple of years to pull off any type of goodly appreciation on it, at any rate. So, why wait, in my mind, because it will tend upward because of our location in the Midwest. As I think where we are location wise, and how many people there are in other parts, like in Arizona and California, not to mention "Snowbirds", that might become more inclined to have a decent place either to retire or to raise a family, I think about calling it safe. These things do matter and will increasingly matter to make St George Utah a more and more attractive place to live!

If you've liked this blog update and could use a great agent now or in the future or a good lender recommendation or even if for a resource for friends, please go to my real estate website and save me in your favorites now. Thank You! ~Brian

Southern Utah Real Estate

2008-07-07T10:22:00.000-07:00

Southern Utah Real Estate

Our Southern Utah real estate has not experienced as hard a hit as say Las Vegas Nevada or other parts of the country. In other words, although prices have had to readjust from heightened appreciation gains, some of the highest in the nation, the reasons for settling to the St George and Cedar City area are not typically marked with Buyers intents to get rich quick. Rather they are looking for a better quality of life and to settle in this area. This overall temperament for the area really ought not to be underestimated at least in terms of projections toward future in migration to the area. Southern Utah has also not been hit like other parts with as many foreclosures, although they are far more than anyone have imagined. Bottom line for the future market is that, although things are slowed, it has not completely "dried up the lake". While our mobility for sellers being able to move has been hit and our ability to move properties, we still have some vitality that will carry us through- all is not doom an gloom.

St George Utah Real Estate, Mortgage, Forclosure News, Internet Traffic, St George Utah Retirement Trend

2008-06-19T09:43:00.000-07:00

St George Utah Real Estate

St George real estate values are somewhat stale. Oh to elaborate is to speculate and to speculate is to perception. Can it get any more infallible than that. Indeed the human factors influencing buying are all over the place. Some general news nationally regarding new jobs, average incomes, increase in population etc. all could point to better house values ahead. But combine it with the current flow of transactions which are way down, foreclosures staying steady on the horizon, although not increasing a whole lot, new housing comparable solds on the market at lower values and it is a mixture conglomerate of hodge podge.

One indicator I find locally leads me to believe at least a slight break in the stale movement of homes here in the Greater St George area. And that is I have heard several reports from realtor's on short sale homes, that where as few offers on them existed before, now they have multiple offers. People have got to be anxious too, to get into a home at a decent price. So, as these Short Sales and REO Bank homes drop in price, I think a kicker is evident below it all, and that is that there are quite a bit of buyers that would prefer to change their current situation if prices come into a line-up that indicate 'not losing' on the situation. Kind of a far off example, a California builder offers the incentive that if homes ever get sold for a lower price in the same development, they will refund previous buyers the difference and this has sold three times as many homes in the first two weeks, than in the prior three months combined.

St George Utah Lenders

St George Lenders are really reeling with what to do about the situation with interest rates going higher. My local Lender whom I refer as very reputable, competitive and experienced indicated to me that business was able to maintain somewhat in the recent past because of all the people needing to refinance off of their coming-due option or now, variable higher interest loans. However, this may not be offsetting enough for St George Lenders because as the interest rates have gone higher now, fewer may not see it as viable an option it once was.

St George Utah Foreclosures

St George foreclosures are still happening at about the same rate from my observations, without looking at the stats. Notice of default stats have been going strong, so I'm assuming from that and the Short Sales I've put offers on that they still exist at about the same rate. I have noticed that foreclosures and short sales in the low 300's have decreased from a former time. While I've noticed foreclosures and Short Sales above the 400K mark increase. Remember, while the jumbo loan rate has increased up into the 700K range up in the northern part of Utah, Southern Utah has by Federal government stipulation, been left at 416K. Well, the jumbo loan interest rates are higher, making the loan that much more unaffordable for that customer base.

Nation wide foreclosures reveal a dip in the number of foreclosure filings from January to February. Not a significant variance when they are projected to continue. Nevada, California and Florida continued to show the highest number of foreclosure filings during the same period.

Real Estate Internet Traffic

Traffic on real estate web sites has gone up since January, according to Internet data collector Comscore.com- an overall 28% gain!

St George Utah Retirement Trend

A St George Utah retirement trend seems significant with our local Sun River builder showing steady building compared to the rest of the builders and is the top builder if not next to the top here in St George Utah. This would seem to depict that, while hustle and bustle 'bee workers' will not and do not transfer much among beehives, our 'humming' retirees are still coming on strong. The retirement industry is going strong here, I would say. Although let me couch that into some context, noting lots of resales looming also in the Sun River community. Now is a good time to take your pick. The development center does have new models to chose from.

What is pretty cool about Sun River too is that competing with adult communities nationwide, SunRiver St. George earned a silver award from the National Association of Home Builders for the design of its new clubhouse and Riverwalk Grill. The award was presented at the association’s May meeting in New Orleans, honoring SunRiver’s achievement in the category of “Best Facility under 5,000 Square Feet.”
Designed by Frank Fisher, the new clubhouse, with its expansive views of the community’s golf course and the mountains beyond, has quickly become a popular gathering place for residents and non-residents alike. Visitors to the grill can dine in the elegantly appointed main dining room, the more intimate bar area, or outdoors on a patio cooled in the summer by a misting system. The adjacent pro shop offers a full line of golf equipment and accessories and golf and casual clothing.

REMEMBER, if you plan on making a move, I am Brian Habel, here in St George Utah and I would love to represent you as your St George realtor of choice! Thank you!!!

St George Real Estate Yearly Appreciation Rate

2008-05-29T13:09:00.000-07:00

Statistics for the St George and Utah area involving percentage apreciation rates were just compiled by the Office of Federal Housing Enterprise Oversight. For last year, 4th quarter 2006 to fourth quarter 2007, the appreciation rate for St George Real Estate was -3.65%, where as Salt Lake City Utah was +5.39%, Logan Utah was +6%, Provo and Orem Utah was +6.76% and Ogden-Clearfiled Utah was +6.64%.

St George Utah real estate appreciation rates over the last 5 years equates to +73.07% versus about 50% for northern Utah.

St George has a fair share of Short Sales and REO Bank Foreclosures, which is helping to keep prices even or down.

Also, a divergant amount of homes above the bulk loan interest rates, which are above loan amounts right around $416,000, are slow movers versus the rest of the market feeling a slight pick up in sales. (This observation is somewhat subjective and comes from shopping with buyers in those price ranges and asking experience of RE/MAX First Realty agents).

We hope you appreciate these updates on the market and will use Brian Habel with RE/MAX First Realty when it comes time to buy or sell your next home here in the St George real estate area.

For a good article featuring some of these same statistics as well as some other helpful up to date information, goto Utah Homes Still Appreciating.

Utah Real Estate Market

2008-02-29T14:57:00.000-08:00

Utah Real Estate

I used to report that Utah Home sales were the last frontier where huge home appreciation rates were not experienced yet, such that lots of investors and home buyers could come and make a go of it. Well, along with that I think that the 'Wasatch mountain range' really did have a 'shield affect' for lots of Utah from a lot of this yo-yo like market the rest of the nation has been experienceing. Even now, they hold off as 'conservative' with housing prices being held down along with the rest of the nation. When I heard that Utah boasted one of the better appreciation rates I decided to try and do some research. But the following information taken from the Desert Morning News, Feb. 15, 2008, left me really a wondering about that.

Sales of existing homes in Utah dropped 33.8 percent in the fourth quarter of 2007, compared to the fourth-quarter of 2006, mirroring decreases in much of the rest of the nation, according to a report released Thursday by the National Association of Realtors.
The median sale price of existing homes in the Salt Lake City area also showed a drop at the end of 2007. While sale prices for the year were up 2.5 percent overall, they decreased 7.13 percent from the third quarter to the fourth quarter of 2007.
The median sale price of a home in the Salt Lake area in the fourth quarter was $229,100, down from a median sale price of $246,700 in the third quarter.
Utah Association of Realtors president Dave Mansell said even though sales are down, there is still cautious demand in the marketplace in Utah. "People are holding back because they're afraid the market is going to fall on its face," he said. "They're hearing Florida, California and Las Vegas are seeing these huge drops in prices, and they think it's coming here."
But Utah will likely avoid major problems, he said, because the state's economy is strong and the housing market has not been vulnerable in the ways other areas have been.
"Historically, we haven't had the same market swings," he said. "We don't go up as fast, and we don't fall as fast or as far, so it's much more stable." Sales of existing homes fell in 45 states during the October-December quarter, with metropolitan areas showing growing weakness, the national report said. The fourth-quarter data from the National Association of Realtors underscore the breadth of the housing market's slump.
Prices have fallen more than 10 percent since their July 2006 peak, in the worst U.S. housing slump in 26 years, as the number of unsold homes has grown and prospective homeowners have had a tougher time getting home loans.

Global Factors - U.S. Housing Demand

There are a few looming factors that in paraphrasing Chief Economists of NAR, will make it just a matter of time before the housing market becomes an engine for the economy, rather than a drag for the economy. First off interest rates were dramatically cut in January by the Federal Reserve. Also, home prices are projected to stay lower. Secondly, the job growth has far outperformed housing. Typically we will see one new buyer for every 2 new jobs created, but that has not been the case for some time. So, with home prices being down and job growth having been high, new buyers have the wherewithal to buy. The guess is that they are waiting for rates and housing prices to fall even more. Another third major factor mounting demand, would be the increase in population numbers that will help fuel more new construction and even resale demand.

St George Real Estate

The local Southern Utah real estate scene has some complex factors weighing in on the scene. One, we used to have a lot of Californians and Las Vegas buyers and that segment has all but wained. When you take such a major segment away and when you still have some persistence in home values, with not too much drop being experienced along with all the Short Sales, one begins to wonder if the illustrious appeal from the immigration doesn't just generalize to a broader spectrum from the entire U.S. and to the more northern region of Utah as well as into the state of Idaho. Retirees, both from the northern regions (too cold up there) and south, are contributing as well.

The areas homogeny contains a large mix of Mormon or LDS population in those more localized Utah and southern Idaho regions and this contributes at least in a moderate flow of immigration to this area. But the attraction to the area is much more diverse now with the the intrinsic appeal of being geographically centrally located, in the mild climate area and more accessible to both the north and south mid-west. Also appealing is the geologic red rock formations and general sandstone color mystique of the area, boasting Zion National Park and Snow Canyon State Park, a stones throw away- this doesn't hurt the matter any.

This is to mention that the area is becoming much more homogenized with influx from all various parts of the country. We at SoUtah.com believe that these factors all add up for a quick one to one-and-a-half year turn around of the market to normal appreciation rates from 6 to 9% again. In the mean time, many smart buyers will have found a niche property or two for investment or retirement ends. We also project that values, although maybe dropping marginally, will maintain mostly at flat levels or will not extend to be a huge drop, and in the main price range under 300K may turn sooner vs. later to actual appreciation of home values once again.

St George real estate is always going to fall victim, as in 'the new decade holder for being the fastest growing micro-macropolitan area in the nation', to the mere fact of location, location, location. We haven't even began to talk retiree dialect. Some have asked, when stumbling onto St George, Utah, 'Why in the heck would I retire in the desert when I can have the best of that weather and of the more scenic country side, along with more things to do, not to mention the solid family and community values one gets a sense of, when living here. Also, combine that with the quaint artsy-ness of the place and the culture that is here? Along the main I-15, blink and you miss it, just like life! Soon and all the kids will be out of the nest for me (5 kids, oldest is 12)- check out your St George Realtor. Pretty much this is also the only place you can go for a quick search of St George Utah Retirement Communities.

St George Utah

2008-01-31T13:26:00.000-08:00

St George
St George is a wonderful place to live!... IF you are a realtor with a bunch of REO bank sales in your queue. Never mind my huge bias of it is a heavenly place to live.

Combine this... St George Real Estate Sales
Your St George Utah real estate market update comes from some pretty good background or listening-in, on the local statistics experts. I use that word "experts" with caution, because we know nobody holds a "crystal ball". Take that into consideration when we talk about the following, OK? Can I start by saying I'm going to be couching every thing in the phrase of "combine this..."?

Basically, we have felt a slight pick up, some yes, but mostly on the REO bank sale front. Combine this with an article off MSN that reported the bank sales not to be letting up with the option loans still making its rounds through the next year- interest rates changing on people from fixed to variable higher rates, thus more foreclosures possible. Yet, as of today I see some segment of a lot less REO homes on, that I have ease dropped on office activity in seeing a surge of buyer activity regarding. On the other hand, combine it with St George not lacking in the supply or inventory, on the market, category. On the other hand 'back at you', I thought I heard that we are hedging changing the pace toward downward, to sale faster than they come on (what must go up there, must come down to) to start us back to a more normal supply (way far off). However, the catch is that supply is anticipated to come on perhaps even stronger throughout the year. Go back and combine this with the foreclosure market, at least giving enough comparables to show lower pricing. That being said, you'd think it is possible to see lowering of prices. That is very possible by this time next year.

Combine that... FHA Loans & Interest Rates
Yet, I have felt in my office a surge of activity, and we are the largest producing office, so you would think that could be a big enough pulse maybe to tell something about here and now. Combine that with the idea of buying activity could be expected to come back stronger perhaps because you can't keep it back forever. Uh, how about this area being centrally located. Combine that with 'way good' all time low interest rates. Combine that with FHA, or federally backed loans becoming easier for people to get with new reforms. Before option loans in 2000, FHA accounted for 25% of loans- that's huge. So, it could come back in to help in a significant way-- so says chief economist Yung at the National Association of Realtors. Already, minor changes to the FHA program, making them easier to apply for and obtain have been incorporated, but the significant changes are anticipated to come around beginning of summer or later- you know congress. Forclosures however, have the ability to offset everything in bringing prices down and supply up. Combine all the factors, listening to the stats people especially, and I predict a market that will be flat to somewhat depreciating. Homes could continue to suffer some depnding on area, especially if in higher price brackets, and the fact of new construction being the one key variable unknown impacting a lot of that 'stuff'.

Good News If you are the Buyer
The good news for buyers may be that enough REO bank sales can pull on houses to sale below perceived market value. So as almost always, selective buying or "it was a deal" kind of buying, should be OK to find and do. Perhaps the best lesson is for the Seller- 'don't be greedy, it may cost you in the long run.' If you would like no nonsense, "don't care if it offends you" advice on how to price your home to get top dollar out, give me a call. Besides, have you ever seen how much exposure we are giving our Sellers on our St George real estate home page?!

2008 A Normal Market - Steadying Picture

2007-12-29T09:47:00.000-08:00

Economists agree that home sales (new and existing) will bottom out in 2008, somewhere in the second or third quarter. While we've kind of been in that scenario already, it is quite a different thing for forecasters to go on the record stating a clear demarcation for appreciation again. So, local markets may vary, but nationally, because of underlying health issues involving the U.S. economy, there is a projected 'line in the sand' coming, stemming an unprecedented historical decline in housing prices.

In certain areas where there has been fantastic appreciation in the past, causing more of a bubble bursting situation, one can relatively project before old pre-appreciative spiked sales prices, given a homes average typical appreciation of 4 to 5% a year, where things ought to be now. It mostly lines up with a bit of slowing still projected through 2008.

Some variance of predictions exists between Chief economist Yun with the National Association of Realtors (NAR) and economist Douglas Duncan with the Mortgage Bankers Association (MBA). Yun asserts that while lending is more stringent in their requirements, he still believes that the pool of qualifying buyers is larger than believed saying, "This slowdown has never been about the underlying fundamentals of the economy... Consumers have the means to buy, but they've lacked the confidence. Once they see sales and prices stabilizing, they'll be back in the market." Conversely, with access to loosely written credit closed off, Duncan asserts, "you're likely to see continuing decline in the house prices and buyers sitting on the sidelines."

Economists say that tighter underwriting is exactly what the market needs right now. But Yun believes that the pool of ready buyers will still be larger than believed because they will have more financing options such as federally backed loans, specifically FHA loans. He recounts that FHA loans had a 20 percent share of the market in 2000 before the growth of sub prime lenders and if Congress passes reforms making them easier to obtain, which it is doing, then it can capture that share again.

I called one of my local St George Lenders, Steve Stout with SGI Mortgage to ask him about FHA reform passing and he told me that it hasn't done so yet, like anticipated. He also detailed how that he already supplies the FHA lending options as a lender. He clarified that the reform making FHA more of an option to people is not so much the requirements they have, but in outsourcing the availability of the program itself to all the different mortgage lenders there are, although reforming requirements is arguably a needed big part of it as well.

Alan Greenspan, former Federal Reserve Chairman, in speeches last year, gave a less than one in three for chances that the economy would slip into recession this year, which is the only thing that could quell a return to normalcy in the housing market. Even the Mortgage Bankers Association, sees a persistent growing of the economy through the first three quarters of the year as a basis for home buying ramping up into the end of 2008 and beginning of 2009. The key factor of how the housing is also dragging or won't be dragging on the economy is also thus taken into account in their models.

The commercial real estate is poised for continued solid performance across sectors this year. The tightening lending standards in the commercial sector have been taking place over time relegating commercial to a more normal and traditional scenario involving income investing. In other words, commercial owners plan to make more money from cash flow rather than appreciation. I can help if you need help regarding St George Commercial Real Estate.

Overall, 2008 is the year of return and not continuing decline... a year of return to normalcy.

If you'd like Brian to keep his eyes and ears peeled for you to help take advantage of good deals which equate to buying right, just give him a call or visit us on our website at St George Real Estate.

St George Real Estate - National vs. Local Market Conditions and Projections 2008

2007-12-18T09:34:00.000-08:00

National Scene 2008
The National real estate scene has seen characteristic turns in the market that correspond with interest rates, such that predictions into 2008 on existing-home sales is projected to trend gradually and only modestly upwards according to the National Association of Realtors (NAR). They point to a recent mortgage disruption that peaked in August leaving the fall-out of lower home sales in September and October 2006. Since mortgage rates have improved the existing-home sales are expected to improve slightly to stable over the next couple of months. Because home sales have been significantly less in 2007, however, as compared with 2006, a Pending Home Sales forward-looking indicator index, helps project that the broad trend over the coming year of 2008, while a gradual rise in existing-home sales, will only be modestly higher than 2007, according to Yun, chief economist with the NAR. A recovery of new home sales is unlikely before 2009.

St George Utah Real Estate
As far as St George Utah goes- one local guru has gone on the record to say that he thinks things will pick up early spring.

Here on the local scene, home sales in periphery locations, even Hurricane, have suffered the most. Normally we would get our spill over of buyers into the more rural locations, perhaps from Californians looking to get back to a more rural simple existence and out of suburbia. In my limited view, we are closely tied to the national scene, such that when the coast lines free up, then we also tend to get back to a normal market. I think the highly affected rural areas are symptomatically the first responders and indicators of the future. One system affects another and right now Sellers in the more rural areas are mostly hanging onto their equity, rather than giving it away. Who might could blame them? In other words, if they were responding with significant price reductions, than we could forsee it in our future more centrally located in the Greater St George area.

It appears to me that while transactions are down there is and has been, for some time, a pretty good resistance by home owners to NOT lower prices, such that speculation buyers have had to halt activities for longer than they have wanted to in desperate hopes that prices would drop even more. I suspect that some of that will go on into the new year with some wondering if the winter will put the "freeze" enough on the sellers to come down even more. St George is still an attractive place and other non-speculative buyers are and will be buying and creating enough activity, to keep sellers sustained in their activities to try to maintain value... in my opinion.

In other words, if you as a buyer are waiting, I do not think it will be for an opportunity corrsponding with the market at large that you will avail yourself of, so much more than in waiting for that right opportunity that one can 'normally' find. However, this view is being challenged still, by all the Bank REO sales and short sales that seem to be receiving some numbers and flow, in terms of a large number of porportionate properties that are "moving" at this time.

This is your eye on the St George Real Estate market coming to you from the desk of Brian Habel, your St George Utah realtor. Be sure to visit my website and use my advanced property search provided through the Home Buyers Scouting Report- you will be glad you did. My many users, over 60 buyers, are currently enjoying the aerial photography of listings (I hope you've learned about the "Birds Eye View" from clicking on Map Views) and a way to save and track your favorite properties with email updates and being notified of any changes, such as a price change, addition of a photo or if the status changes to Under Contract, etc.

Southern Utah Home Buying Guide

2007-10-19T11:58:00.000-07:00

Not long after I have ventured to say that our St George Ut real estate values will be alright, I found this Southern Utah Home Buying Facts Guide in my realtor box. It is most persuasive with a lot of facts pointing to- 'this is a good time to buy'. I think it will offer you some of the solace and 'get off the armchair' type of information you might need to get going and buy something. OK, it's obvious that I'm a realtor who is a realtor looking to win your business. I see my colleagues whose professions are just as much seeking for equilibrium. We will weather the storm. The art of sales has only to do with pursuing conversations and then finding out if we are a good fit for each other or not.

If I was St George, Utah, I'd be meeting you more than half way to ask, might it be a good time for you to buy? Feel free to check Brian Habel with REMAX out at St George Realtor. I offer a buying service at my St George Utah real estate page that gives you aerial photography of all the listings and way to keep track of your favorites in a property notebook. Oh, and if your are from out of town, you can find out where all the shopping, restaurants, libraries, airports, and schools are, with respect to where each individual listing is, that you are looking at on the map. There is nothing like it on the Internet- it is well worth the... no obligation, very secure sign-up, with all your information being kept confidential to a preferred lender and myself.

Utah Real Estate

2007-10-17T13:28:00.000-07:00

Utah real estate will be OK. As a result, because St George real estate has usually faired better than the rest of the state with more growth per capita, then it also ought to be OK. These summations come in the wake of a recent visit by a national real estate expert, Peter Linneman, to Utah's NAI Utah Real Estate and Economic Summit this last Tuesday, of October 16, 2007. Here are some comments from him and privelaged information concerning the future of Utah Real Estate:

“I don’t see any chance of a [national] recession in a coming year,” he said. “We don’t have supply that we can’t absorb.”

A widely-published economist, Linneman is the founding chair of the Wharton School of Business real estate department at the University of Pennsylvania and was also recently named one of the most 25 influential people in real estate by Realtor magazine.

Many buyers panic unnecessarily about the local residential real estate market when they see national media reporting a plummet in housing prices, Linneman said. While growth in Utah’s real estate market has slowed, standing inventory will be filled in the next six to 14 months. The U.S. economy is doing exactly what it should be doing, he said.

“All areas…are doing normal, except housing, which is doing less than normal, which is what it should be doing to get back on track,” Linneman said.

The real estate market is not booming as it was a few years ago, but it’s not crashing, Linneman said. Growth is down, but prices are fine, a common misunderstanding, Linneman said. Growth in the sector is slowing, which is a normal, necessary outcome after the spike of the past three years. Real estate continues to appreciate at a normal rate of 1.3 percent annually, which is a healthier, more sustainable pace than the country has previously experienced.

“The housing sector should be weak,” he said. “If the housing sector were still doing well, we’d be setting ourselves up for a bigger problem.”

Currently, 450,000 homes sit unoccupied across the nation, Linneman said. However, 25 percent are located in southern and central Florida and an additional 25 percent in Phoenix, Las Vegas and southern California. The rest are scattered fairly evenly across the United States.

“You know what that says about the rest of the housing market? It’s not in bad shape,” Linneman said. “That doesn’t mean there isn’t a little excess, but that excess gets used up in months, not years.”

Contrary to many reports, the national economy is still performing well, he said, and will continue to do so during the upcoming year. More than 89,000 new jobs were added nationally in August, according to Linneman. Looking beyond the data, Linneman said key indicators of a strong economy are airports, hotels and restaurants, all of which are bustling.

“People do not go on big holidays when the economy is in bad shape; you don’t send six employees to a conference when the economy is in bad shape,” he said.

Linneman predicted a slight recession in 2009 and 2010, largely due to the introduction of a new presidential administration, which will lead buyers to pause as they see what decisions the new president will make. He counseled commercial real estate developers to be cautious about how much speculation space they bring online in 2009 and 2010, because a recession could lead to less job growth and slower business expansion.

Utah’s economy also continues to experience growth, and the quality of life in the state is a key driver, said Jason Perry, executive director of the Governor’s Office of Economic Development, who also spoke at the event.

“By all key indicators, we have the hottest economy that exists right now,” Perry said.

According to a report from the Utah Department of Workforce Service released Tuesday, employment growth was 4.4 percent and 53,500 jobs were added during September in the state. Unemployment remains at a historic low of 2.7 percent.

“We are competitive with any state for bringing business into the state,” Perry said.

Because of this strong performance, Utah has been able to attract larger, more prestigious companies as possible move-ins. Perry mentioned a potential relocation deal with manufacturer Procter & Gamble, which would bring 1,300 jobs into the area.

“There is reason to be very optimistic about our future,” he said. “Things are happening here in the state of Utah.”

Housing Projections - Soul Projections

2007-09-07T08:12:00.000-07:00

Housing Projections
The National Association of Realtors (NAR) indexes pending sales and follows seasonal patterns of sales and as such they report that pending sales of existing homes decreased at a seasonally adjusted annual rate of 12.2% to 89.9 in July from June's 102.4. Signed contracts for previously owned homes, was 16.1% below the level of July 2006. The NAR reports that the index shows existing-home sales are likely to decline in coming months as mortgage disruptions work through the housing market.

Here locally, St George Real Estate has mimicked what we hear on the national scene. One could also speculate, that even as the commercial sector is growing supporting a jobs growth economic base, that the illustrious influx of money like from: the baby-boomers, the second-home owners, and the California-like buyer who used to be able to get 'bank' on their home out there and come here to live in style, has been depleted by market conditions and has offset and curtailed any of the benefits that earlier 'leaked-out' fame may have brought us. The real benefit may be for the working class family that would like to continue to live, work AND purchase in St George Utah.

Soul Projections
How market conditions are, while shifty to perception, because it is harder to also get a loan now too, can be relative to whether you are the buyer or whether you are the seller. One should not always be duped by the luster and hype, when sales is merely the art of bringing out what is 'on the inside'. May we all 'shine' brighter- the congruence we 'would' make in the corollary.

St George Real Estate, Appraisals and Lending

2007-08-23T18:33:00.000-07:00

If you are a seller getting ready to sale your home, do not altogether rely on appraisals that often are going off past values and not being up on the somewhat declining market we've been in. Appraisals can be deceptive. Case in point. I have a listing right now that is a short-sale and the appraisal said the home was worth about 280K when the people moved in a year ago. They are now saling it at a loss of at least 60K. Banks are reeling.

And with thousands of mortgage banks and brokers threatened with extinction, lenders that embraced all kinds of risky loans two years ago are enforcing increasingly strict standards. They are refusing even to consider extending new credit to people who lack any equity in their homes.

Lenders have been tightening their standards for the past year in the face of rising defaults and growing jitters among the investors who provide funding for loans. That tightening has accelerated in the past two weeks as many lenders -- uncertain at what price they might be able to sell loans -- have stopped making all but the safest ones.

I heard that nearly half of the offer contracts entered into this last month ended up falling out. At very least, there has been an inordinate number and those that did fall out because of the inablilty to secure financing. So, if you need a good local Lender, I highly recommend Steve Stout with SGI mortgage because he is downright fair and very experienced running on 15 years in the business. And can I just say, you have to be experienced to work with the vascilating Lending market right now. I also have other recommended Lenders, along with Steve Stout's phone number on my site at St George Utah Lenders.

If you have real estate needs, we need to let you know about our special services. Namely, their is one shopping solution to beat them all. Enough said. It is called the Home Buyers Scouting Report. You can find it at St George Utah Real Estate. I might also say that we are just having/going through a makeover on our site that one might just find fanciful and our numbers are soaring in the search engines- we have a lot of repeat visitors.

St George Utah Real Estate

2007-08-14T13:34:00.000-07:00

Realtors whose frog legs are still left in the water, which are most, should be ashamed of themselves. It only takes one good look at realtor's activities outside oneself to see what is happening generally; to wake up and realize that the water temperature has been rising slowly. We are being cooked and therefore are cooking the Sellers we represent if we don't wake-up and get our prices in line with the demand. The tendency has been an actual declining market where chasing the market value price line downwards without getting your home onto that line equals less money out in the end. But don't tell anyone... this is what makes Brian Habel at RE/MAX First Realty, your St George Utah Realtor, much more likely to serve his Sellers better. Staying abreast of the market in order to protect his clients equity is what it is all about. Read ahead further for what may offset this decreasing downward trend that many a seller has been feeling.

Although, sales have been down and prices have been coming down to the tune of 1.5% depreciation per month, there is a fairly authoritative voice, for the national scene, telling us that home sales are expected to take a gradual improvement going into the end of 2007.

Lawrence Yun, the National Association of Realtors senior economist in his latest forecast has said, "Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year. It's important to keep in mind that all real estate is local, and many markets are expected to have higher sales and strengthening prices during the second half of this year."

If you should ever need any help with how to go about selling your St George Utah Real Estate, don't hesitate to give us a call.

2007 Market Data for the Nations Fastest Growing Area- St George Utah

2007-07-02T09:47:00.001-07:00

Recent data for the St George Utah area suggests that the market is in a slow down, marked yes by price reductions. This is a bit offset in pricing strategy, by a starting high trend, only to reduce to reality later. We have somewhat of a decline as a compensatory reaction for unbelievably high price appreciation in 2004 and 2005.

This data has some basis in realtor sold units, but I hold no responsibility as to reliability or guarantee anything.

Starting with Lot sales we have about 123 lot sales in May of 2007 vs. 159 in 2006. This is about the difference represented. 31% of lots sold below 150K with 16% of that below 60K; also 17% between 150K and 200K. The rest sold above that price marker.

For dwellings we had 479 transactions in May 2006 and 421 in May 2007 and this seems to be the depth below 2006 we are running at. Homes below 400K are what's moving per the inventory levels, meaning homes above that take fairly significantly longer per the amount of listings in that class, to move and sell. Average, but not median price of single family homes for 2007 is 324K, which is down from 2006's 334K, but way up overall-- a jump from176K in 2003.

An interesting tid bit is that in 2005 buyers originated or come from: 25% from CA and 9% in NV and 50% in UT, while in 2006 a marked difference of 63% from UT, 15% from CA and 5% from NV.

These are approximate figures and should in no wise be relied on. We hope this information helps and as always encourage you to use us when you buy or sell St George Utah real estate.

St George, Utah- Rated #1 Boomtown by Inc.com

2007-06-01T16:39:00.000-07:00

Inc.com just rated St George Utah as the #1 Boomtown 2007 in America. They used job growth as the number one factor toward economic vitality. Inc.com is not unfamiliar with ranking St George Ut as the best place to do business.

Future Demands for Water in Southern Utah- The Lake Powell Pipeline

2007-04-17T07:10:00.000-07:00

Some people have talked like that water will be a precious commodity that may significantly impact or retard growth once we have reached a certain size. While I am unable to comment authoritatively about these things, I can refer our readers to a project that is looking way forward and has started the wheels a moving already into delivering a future of prosperity and growth- The Lake Powell Pipeline project. Dennis J. Strong, P.E. Director, representing the Division of Water Resources, relates that the Boy Scouts motto of "Be Prepared" sums up the preparation being taken for St George Ut Real Estate and the area. Key facts relating to our needs and the project are:

Governor Jon Huntsman, Jr. signed the Lake Powell bill into law on May 3, 2006, opening the project for project feasibility studies.
Analysts predict Washington County alone could see a water demand of 174,000 acre-feet per year by 2039, an increase from the county's current demand of 45,000 acre-feet per year.
Studies should last till 2010 with the pipeline expected to be delivering water by 2020 after a 3-4 year construction period.
The pipeline will extend roughly 12 miles with a cost of approximately $370 million and $120 million to extend it to Cedar City. The pipeline would bring 70,000 acre-feet of water to Washington County, 10,000 acre feet of water to Kane County and 20,000 acre-feet to Iron County.

2000-2006 St George Spectacular - Fastest Growing Area in the Nation

2007-04-04T13:17:00.000-07:00

As of April 4, 2006 I am predicting that the new consensus numbers to be released shortly will rank St George, Utah as the fastest growing area in the Nation from 2000-2006. I heard it from a pretty reliable source that I cannot name and steal their thunder, let alone if I can actually know it was the source that they named. But take it from turtle, Brian Habel- these dessert preserves aren't all blowing sand; but shear carved out beautimous sandstone rock formations and color hewn vista, bluff and blue sky meets snow glazed Pine Valley mountain in April while boasting coasting shorts and T-Shirts out of winter. :-)