St. George Utah Real Estate

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St George Real Estate - Tipsy Economic Climate - Local Inventory Decreases

noreply@blogger.com (Brian Habel) — Tue, 20 Apr 2010 03:49:00 +0000

St George Real Estate has seen a bit of spike in foreclosure sales and many short sales are being gobbled up at least with offers on them. Real Estate tid bits on the horizon and economic factors will most likely show forth an unpredictably volatile market.

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.

The Tax Credit incentive dies the death this April 30th and it is not too late to take the plunge before that date, if you haven't already. You only need get a offer signed and under contract on something by then and have it Close by June 30th, 2010.

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.

Interest Rates Notification

noreply@blogger.com (Brian Habel) — Mon, 29 Mar 2010 16:42:00 +0000

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.

St George Utah Real Estate - Some Sluggishness

noreply@blogger.com (Brian Habel) — Wed, 03 Mar 2010 00:15:00 +0000

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.

St George Utah Real Estate

noreply@blogger.com (Brian Habel) — Fri, 05 Feb 2010 01:48:00 +0000

When you look at St George Utah Real Estate values over this last year it is important to consider how it is that the influx of Short Sales and Foreclosures has had a direct and dramatic affect on values. How and in what way the values increase, decrease or stay the same may may have a lot to do with whether or not the inventory of short sales and foreclosures dissipates.

With some return of sales and activities across the nation and with some indications of the inventory or supply levels leveling off or decreasing, one could speculate that a return of activity and values is on the horizon if not already present for some places in the country. While St George has felt some return of activity and particularly realtors and title people that look at the numbers, have been optimistic, still a lot will be yet determined by foreclosures and short sales, if the supply decreases or if as a persistence of supply takes place. We believe that it is already tapering off some, but it is not completely clear yet as to the amount of short sales and foreclosures that may still persist some throughout this year.

A few months back a large title company here, at least one of their statisticians pointed to how there already is indication of a downard slope of Notice of Defaults. What notice of defaults are, is that when somebody is first having problems making their house payments and default on them, this tends to be the start of a possible short sale or foreclosure.

We also believe here at St George Utah Real Estate, that unemployment percentages and interest rates will also feed into this short sale and foreclosure supply equation. If you feel this has been informative in helping you stay ahead of the pack and in getting in on a purchase now, while the tax credit for existing and first time buyers, then please give Brian a call.

St George Utah Real Estate - Invest in Your Active Lifestyle

noreply@blogger.com (Brian Habel) — Wed, 27 Jan 2010 04:47:00 +0000

If you invest in your St George Utah real estate, you will be impressed with what kind of active lifestyle you can begin living no matter your age. Now, for all you retirees or young bucks, I say- Go for the Ironman Gusto. It is the Ford Ironman St. George race of a lifetime that is coming up on May 1, 2010. Now, in case you are ambitious, you can do it! You can swim 2.4 miles, bike 112 miles, and then run 26.2 miles. Not a problem! Yes, you can do it- all in one day. You thought the St George marathon was ambitious? Try piling on top of it that 'little' bike ride and do a couple laps in the pool, right? Right! I say hats off to all you literally impressive specimens in spirit if not body. Either way iron is a really good metaphor to reveal the deep down truth of these people being truly the Ironman of our next decade. Yet, it is amazing how many truly stellar and real fighters we have entering this race. Each year it seems to grow and 2010 looks to be another amazing year. You probably knew that you can register even for the next years Ironman shortly after the race. After that, will you call me up and come buy your St George Utah real estate with Brian? Woo, what a day!

In other news, Hurricane city revenue is down 13%.

If you'd like to search for St George Utah Retirement Communities, after going there, you can do the Quick Search listed down in those paragraphs OR go to the home page by clicking on the banner and run the Advanced Property Search and click on Inclusions and Features option and you'll see the sub-option that says Adult Communities. Click that and then configure any other criteria you may want to limit your search by, such as price. If you ever need a good recommendation in pre-qualifying for how much you want to select up to for your price range see our preffered St George Utah lenders.

noreply@blogger.com (Brian Habel) — Sun, 17 Jan 2010 06:50:00 +0000

St George Real Estate

The following information is given regarding interest rates from a local lender:

Hello, I wanted to give you an update on where the rates have been at this past week. The national average for the past week on a 30 yr fixed mortgage is 5.06% with a .7% discount point and for a 15 yr fixed mortgage it is 4.45% with a .6% discount point. Our rates for today on a 30 yr fixed mortgage are as follows: *4.875% with .5 discount point *5% with no discount points.

St George Real Estate seems to be picking up some for the St George area. I am noticing realtors phone voice mails are full and still some surging of the foreclosures is imminent and possibly clearing the system by the end of the year. For more information please don't hesitate to contact us.

Real Estate Recovery - St George Real Estate

noreply@blogger.com (Brian Habel) — Wed, 30 Dec 2009 04:57:00 +0000

Real Estate

National real estate sales showed signs of recovery from November sales. The National Association of Realtors said real estate sales rose 7.4 percent. This was more than expected. Pete Flint with Trulia.com reports, "Things are stabilizing".

Now of course, the new home buyer tax incentive that was first reported to end in November helped boost these numbers. None the less, the government initiatives, like this program that is now extended to even existing home owners who relocate, has helped to stabilize things. Even so, the high unemployment rate of 10% with employers continuing to cut jobs, is not helping, especially since 14 percent of homeowners are now struggling either to make their mortgage payments or are in foreclosure.

The Federal Reserve recently pledged to keep interest rates low so that the recovery can gain traction. President Obama, after meeting with community banks recently said that businesses will now be able to start growing and hiring again if they can get the investing credit that they need.

Homeowners who have lived in their current properties for at least five years can, now claim a tax credit of up to $6,500 if they relocate. Buyers must sign a purchase agreement by April 30 in order to qualify.

St George Real Estate

In Utah or the Salt Lake area, unemployment rates continue to be lower than the national average. The economy, for the most part, continues to be strong. The St George Real Estate Market continues to stabilize even though the inventory levels involving Short Sales and Foreclosures remains relatively high. Some consensus among Realtors and a lot of buyers seems to be that the exceptional deals are almost gone while we enter the longer phase of good deals still being available. This window may be shortened given the fact that interest rates are slowly, but recently steadily, seeming to rise.

Real estate has traditionally over time held its value, and if you are like minded in thinking that now would be a good time to get into the St George Real Estate Market, than for heavens sake, give Brian a call today at 435-634-5479.

Utah Real Estate - Home Sales, Prices & Interest Rates

noreply@blogger.com (Brian Habel) — Mon, 21 Dec 2009 17:07:00 +0000

Utah Home Sales

In Utah, real estate sales were up 2% for the third quarter of the year compared to the year before. Along the Wasatch front, home sales were up 25% in October over the previous years month of October. On the national level, for the last nine consecutive months pending home sales have been on the rise.

Utah Real Estate Prices

The director of the University of Utah's Bureau of Housing and Economic Development, James Wood, at a meeting of the Utah Association of REALTORS Convention, said that he believes housing prices for Utah reached their low point and bottomed in the first quarter of this year of 2009.

Nationally speaking there seems to be consensus among economists that housing sales have reached a bottom. However, the views are varied regarding the degree of stabilization with some saying that the bottom for prices may continue as long as into mid-2010. Mark Zandi, chief economist and co-founder of Moody's Economy.com who originally forecasted the bottom of prices this year and now projects them into mid-2010, says that the Obama administration's loan modification plan delayed a number of foreclosures that are likely to hit the market next spring, extending the price drops. You can read all about the Utah & St George Real Estate Neighborhood Stabilization Program Reform Act in our previous blog post. Whether this has anything to do with it or not, Zandi is pointing to the way in which we slow foreclosures happening, are of course having repercussions in extending the time it takes for home prices to completely stop declining. Most economist are connecting the bottom of house prices, as being closely tied to the share of distressed home sales declining.

St George Real Estate
Prices in Southwest Utah, namely, the St George real estate area market, has historically seen a quick spike in prices, with a drastic windfall of price depreciation. As such, many locals believe prices have reached a bottom and in some neighborhoods price appreciation, or at least rebounding of prices, has been felt. Statistics for the Washington County Utah area have shown some decrease in Notice of Defaults, which are the pending notices of buyers that are not being able to make their house payments any more- the prelude to our St George foreclosures and subsequent depreciation of home prices.

Utah Interest Rates

Utah home buyers have enjoyed low interest rates over the last year. This has been impacted largely by the Fed with their Mortgage Backed Security (MBS) purchase program... the program that has helped keep home loan rates low for much of the last year. Just this last week the Fed has announced that this program will end on March 31, 2010. What are the implications of this?

It's Economics 101... when Bond prices start to decrease from the diminishing demand of the Fed's purchases, home loan rates will naturally be likely to increase.

Bottom Line
The bottom line is that with all the tax credits available for buying, with interest rates being perhaps unsustainabley low, that buying Utah real estate now or this coming Spring of 2010 may be the very best time to buy before interest rates go up.

Utah & St George Real Estate Neighborhood Stabilization Program Reform Act

noreply@blogger.com (Brian Habel) — Fri, 04 Dec 2009 22:25:00 +0000

St George Utah Foreclosures - Neighborhood Stabilization

I'd like to detail how it is that an alternate view from our last blog post, where the rate or concern of St George Utah foreclosures is put forth through the Utah Neighborhood Stabilization Program of which counties are suffering the most in Utah. The allocated budget for Utah is $177,989,900 to be allocated.

The following is taken from http://www.opencongress.org/:

5/21/2009--Introduced. Neighborhood Stabilization Program Reform Act of 2009 - Amends the Housing and Economic Recovery Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, to revise requirements for the use by state and local governments of emergency assistance provided to them for the redevelopment of abandoned and foreclosed homes and residential properties.

The allocated budget for Utah is $177,989,900. The following is taken from The Utah Housing and Community Development Website at http://housing.utah.gov/documents/NSPFinalActionPlan.pdf in which they cite Utah's need and Washington Counties need:
The low number of potential buyers who can afford or qualify for home mortgages, and the high number of households losing their homes, has created pressure on the overall rental market…The decrease in affordable rental housing puts Utah’s low-income households at risk…Although the foreclosure crisis is felt statewide, the crisis is more pronounced in five of the most populous counties: Salt Lake, Weber, Washington, Davis and Utah…Emphasis will be on stabilizing neighborhoods that have been most affected by the foreclosure crisis. The majority of funding will focus on land banks/trusts and on redevelopment. A portion of NSP funds will be used to revitalize foreclosed properties and make them available to families including homeless families. It is the State of Utah’s goal to provide safe, affordable housing and improve the quality of life for low-to moderate income persons and families.
Thus, it is apparent that Utah state or the Utah Division of Housing and Community Development (HCD) has ranked Washington County Utah as one of the populas areas needing help. I do not know much on how these funds will be allocated,but it is apparent they intend to target the areas of most need or in low income housing segments. This is although many of the foreclosures have been in the higher price ranges, they still hope to affect the lower income earners segment that are being forced out of housing and with low availability of rentals, now doubling the homeless shelters numbers. HCD administers eleven community-targeted
programs and the four HUD programs.

The housing plan does say that funds will be allocated by most need and while we don't know which areas are hardest hit, they do say most emphasis will be on Salt Lake county with the most population being affected.

St George Real Estate

Here in the St George Real Estate area market, Apple Valley to be exact, I know of one rural HUD home that mysteriously was taken off the market, where in the listing agent told me, that when these homes become about half of what the appraised value was, they take them off the market to give the community or city the opportunity to buy the home first for any of their low income assistance programs. This particular home went back on at a reduced price and was immediately sold to the highest bidder. Investors had to wait 5 days before bidding on that property, as it was exclusively available to primary home owners- buyers who intended to occupy it.

Another instance here in the St George area, in Washington, Utah actually, I recently helped a younger couple put under contract a new construction build job. However, at first, the land owners and developers were challenged surpassed loan limits of the bank that also had ownership, that initially constrained that land owner/developer from getting new construction funding. During the buyer refusing to get the construction loan a change came about with the bank that reportedly loan limits of the bank that had a stake in the property, that the limits had been extended now allowing them to fund the project. This may be part of the government getting involved to help spur on development, but maybe it was just part of economics playing out.

This real estate update is part of our way of wanting to keep you informed on the market. Feel free to go to our website for more statistics for the local St George Ut Real Estate market. Fee; free to contact me, Brian, your local St George realtor anytime to help handle your real estate needs.

noreply@blogger.com (Brian Habel) — Wed, 25 Nov 2009 16:28:00 +0000

First Time Home Buyer Tax Credit Extended for the St George Area!

The federal $8,000 tax credit has been extended, not just 'in time' for the first time home buyers, but also previous home owners now qualify for a tax credit of $6,500. So, prices are at an all time low and it is an excellent time to buy St George Real Estate. The details of the tax credit are as follows: The first time home buyer’s eligibility has been extended for income limits being up to $125,000 and for married couples up to $250,000. The first time home buyer definition extends to not having owned within the last three years. Previous home owners are defined as those who have owned 5 out of the last 8 years. Both groups must identify the property and sign a contract prior to April 30 and close on that purchase prior to June 30, 2010.

Economic Stimulus Package- Is it working?

Well proponents of the stimulus package point to rising housing prices as bringing stabilization to the previous tail spin of our economy. They say that the extension allows the second half of 2010 demand, to get a boost up front, with later payoffs in stabilization in 2010.

Nay say-ers of the stimulus package say that the stimulus package did not induce enough buyers who were not already going to buy anyway, to purchase. Further, the original intention was to have first time home buyers purchase regular re-sale homes or new construction where as many ended up purchasing foreclosures or short sales, often from home owners who intended not to repurchase. However, this may have minimized the cascading foreclosure affects segment of the market. So, further extending of the tax credit is hoped to shore up the existing normal resale and new construction segment of the market to offer the 'more balanced' approach toward stabilization.

Implications for the St George Real Estate Market

Implications for the St George real estate market could be positive toward the aim of necessitating more regular re-sales or new sales precisely because the notice of defaults, or pre-foreclosure or short sale types of scenarios are becoming less frequent in the midst of sustained sales. So, as the supply of the Foreclosures and Short Sale homes gets depleted, yet demand for buying sustains, then it follows that more purchases will be common among the new homes and regular re-sale market. This will tend to help a new scenario of regular resale homes to occupy the sold segment of homes. These in turn help represent the comparable sales used to represent new pricing on homes entering the active sales market, thus helping non-distressed sellers regain preeminence in setting price in the market place once again. The background for how this process has affected the St George area home sales is explained below.

Three Stages of the Foreclosure Market- St George Real Estate Affected

Some of these assumptions are based on a pattern that has shown some relevancy before- the three stages of the foreclosure market. First, let it be noted that a “Notice of Default” is the first signs of possible foreclosure where a buyer no longer can continue to make house payments. So, the very first stage of the foreclosure cycle has been that, resold St George Utah foreclosures set lower pricing and this helped create a “back draft” to push many more homes into foreclosure. This first part did show increasing numbers of Notice of Defaults that has been tracked by title companies here in St George. We, as Realtors, get these notice of defaults as public information, and thus for us, are as potential sellers.

Real Estate numbers and statistics in the St George area have already shown this first stage where in the number of defaults increased, with sales just being higher than notice of defaults. As these notice of defaults already took a plateau, stage two, virtually March through June of 2009, here in the St George area, the number of sales equated to be about the same as the number of defaults. Then the third stage seems to be evolutionarily showing itself currently, where in the number of defaults has started to go down with a significant jump down in August, while the number of sales have sustained or at least appears to be sustaining more proportionately higher. There seems to be a pattern set in the fall of 2009 here in the St George area, where in the first sign of Notice of Defaults are bumping lower, while sales are proportionately higher. This has the effect of also beginning to work on existing traditional sales and inventory in the market being sold. This presents a new spectrum of sold homes, thus comparable solds research helping to help set precedence for future pricing of active for sale homes.

St George Utah Home Values- 2010

How fast this product (new resale homes to sell) will dump onto the market could help influence St George house prices, how low prices will retain (with increased supply) or as in the tax credit giving buyers some bite onto sellers, the uptake of sellers (supply dumping onto the market) may lag behind demand brought on buyers taking advantage a tax credit. The net affect could make 2010 a moderately good year while influencing consumer confidence toward spending and some will then generalize it to the rest of the economy returning to some spending, thus normalcy toward increasing production jobs etc. This is the hope engendered by the Stimulus Package. Not all agree upon the methods as to the overall affect being a good one or not, or as to it being illusory, thus disagreeing to a 'bail out'.

The purpose of this article has been to discuss the intentions and affects of the stimulus package and the reality of some of the statistics for the St George area and not to argue for or against the stimulus package.

Bottom Line
One local title company statistician points towards the kind of opportunity this all provides for buying in the St George area. Some of these conclusions were alluded to as follows: that great deals will be gone in 4 months, but that good deals will continue for some time thereafter. Real estate activity will get considerably better over the next 18 months. Pricing is at its bottom with a few exceptions. REO or foreclosure companies are not pricing their properties as aggressively as they have been in the past. Finally, a good maxim for those who are thinking of investing into a piece of real estate, St George Utah, 'At the intersection of home prices and interest rates lies incredible opportunity'.

St George Utah

St George is situated along I-15 and is SW Utah's culture and business center. St George is a popular stop through tourist destination featuring red dirt and rock high desert landscape. It is also the gateway to Zion National Park where towering cliffs drop off exposing mother nature itself at work, with slot canyons with curvatures rolling forms of red and sandstone rock. The weather is partly why we have 'snow birds' and our St George Retirement Communities. This and other reasons, we think, positions St George as a premiere location for future demand and growth. We have the new St George regional airport coming on line real soon.

St George Real Estate Update - Clock Ticking on First-Time Home Buyer Tax Credit

noreply@blogger.com (Brian Habel) — Mon, 21 Sep 2009 16:14:00 +0000

St George Real Estate Update
St George real estate has perked up since March or April 2008, yet the pipeline seem to be so full of Short Sales and REO bank homes, that one wonders if house prices are dictating the "real" market as having really been curbed from falling. I think they have. From a realtor perspective I have seen less and less product on the market and little signs that buyers are going away. Nationally home prices have been slightly increasing since May with the glut of inventory on the market being scaled down. This really is the long of the short of it and uncertainty is on the horizon as to being watchful about inflation which would cause interest rates to rise.

Clock Ticking on First-Time Home Buyer Tax Credit
The clock is ticking on the first-time home buyer tax credit of $8,000. However, the odds that Congress will approve an extension are about 60 percent, estimates Jaret Seiberg, an analyst for the Washington Research Group.

The concern on Capital Hill is that the recession along with unemployment, and more stringent lending requirements lead the first time home buyer to have diminished interest and capacity. So, the widespread concern is that without the tax credit, home prices will begin falling again and reverse this year's gains in the housing market.

Indeed, coming up with that down payment or being able to pay their bill on time is what many a first time home buyer is worried about. The National Association of Realtors reports in July that about 3 out of 10 homes were snatched up by the first time home buyer, but that is down about 10% of what the previous 6 years reports for July.

Of course there are many critics of the first-time home buyer incentive that see it as a subsidy for people who don't need one. I've seen some of that... where a buyer is surprised or impressed after the fact of already wanting to purchase. However, others estimate that... the tax credit will draw about 400,000 buyers into the market this year, said Mark Zandi, chief economist for Moody's Economy.com, who supports extending the tax credit into at least the middle of next year.

The source for some of the above information came from mywire or the associated press here.

New Home Starts are Up
New home starts have had their first little pick up since June of 2008 after a long descent. Interest rates are holding down at 5 to 6% and with suspicions of inflation still looming large. Inflation is the archenemy of Bonds and home loan rates, so now, is as good a time as ever to invest into the market for the future. Most people do not know how easy it is to find out if they can pre-qualify for a St George mortgage.

Remember, if you can sustain home ownership investment, it is the best indicator, even through difficult markets, of wealth building. The commodoties market, with the materials valued in the home sustaining themselves, also tends to confirm this.

Remember there is a new Home Run 2 grant that also gives $4,000 on a new home or build job.

As always, I am here to aid and serve your bottom line when it comes time to buy or sell- please call me, Brian, your St George realtor, as I am every ready to help aid and secure your interests when it comes to your St George real estate needs for the area.

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

noreply@blogger.com (Brian Habel) — Wed, 27 May 2009 15:18:00 +0000

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

noreply@blogger.com (Brian Habel) — Tue, 05 May 2009 18:23:00 +0000

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?

noreply@blogger.com (Brian Habel) — Thu, 09 Apr 2009 22:17:00 +0000

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

noreply@blogger.com (Brian Habel) — Mon, 09 Mar 2009 15:44:00 +0000

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

noreply@blogger.com (Brian Habel) — Mon, 05 Jan 2009 22:35:00 +0000

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

noreply@blogger.com (Brian Habel) — Mon, 03 Nov 2008 21:15:00 +0000

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

noreply@blogger.com (Brian Habel) — Wed, 15 Oct 2008 17:43:00 +0000

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

noreply@blogger.com (Brian Habel) — Mon, 29 Sep 2008 14:45:00 +0000

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

noreply@blogger.com (Brian Habel) — Tue, 05 Aug 2008 19:11:00 +0000

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

noreply@blogger.com (Brian Habel) — Mon, 07 Jul 2008 17:22:00 +0000

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

noreply@blogger.com (Brian Habel) — Thu, 19 Jun 2008 16:43:00 +0000

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

noreply@blogger.com (Brian Habel) — Thu, 29 May 2008 20:09:00 +0000

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

noreply@blogger.com (Brian Habel) — Fri, 29 Feb 2008 22:57:00 +0000

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.