St George Real Estate Market Influences
Some St George market influences are: milder weather, location in the mid-west, national park like setting, tourism, culture, low-crime rate, golfing or other recreational activities, scenery, retirement and second home destination, commercial industry, employment and the people.
What are the factors that have gone into our current real estate values having fluctuated so much?
First, let me say that a typical home sellers St George home value has been influenced possibly by investing mentality, unrest (easily changing employment) or artificial demand with home buyers and perhaps a slump-y local economy facilitating job creation or additions. This can help turn home buyers into investors, possibly looking to move more often to get a return by "flipping" their home. One would hope that the flow of human resources of skilled labor is not too influenced by "this" ulterior method for "making" money. We have all learned that it is artificial to be making too much money off our homes, but only as they relate to our place and conveniences for living and working.
Location, Location, Location- St George Utah
St George Job Market - Can we attract worker bees?
Relocation or home sales are largely dictated by the job markets allocation of human resource supply and demand for skilled laborers to move into these St George area locations.
Over-Insurgence of Construction Workers in St George
The problem in St George is that we had an over insurgence of construction skilled labor and not a proportionate amount of the myriad of other disciplines and trade working class, moving in here. The problems are further compounded when the overabundant and 'jobless new construction workers' are now having their homes foreclosed upon. This niche supply or demand for these workers has dried up. Even the fact of St George Utah real estate and St George's illustrious location and desirability- this has not been enough, initially, to rebound prices.
However, the new St George Regional Airport is anticipated to infuse the area with new vitality that will encourage a well spring of new industry and jobs.
Regulatory Environment
Why is this large swinging of price variation and unpredictable recovery overall bad for the St George housing market? Well, job growth and development is fueled by actual progress, not inflated progress or to include government anti-business regulatory environment. My dad, a veteran Realtor, said it best when he said, "Let the market correct itself and government stay out of it, it will self correct on its own." This is of course is how real estate supply and demand works.
Best Use of St George Resources
Best use of resources has to do with available human resources. If new available human resource cannot have freedom of movement, which the government tried to help with, then theoretically, the best use of resources was and is not available. If it was, it was to heighten and improve that businesses bottom line or the economy, bringing innovation to new business. On the flip side St George has some lost opportunity cost from not being more stable in our price fluctuations. This can stifle the synergy between that otherwise interplay of resources.
The fact that the St George city planners have been building out our infrastructure and working effectively in this area and in respect to the new regional airport. This is projected to increase St George business and flow of some product and services. Originally the new airport was expected to accommodate larger passenger airplanes. A spill over affect of encouraging free market flow of products and services could play into St George's recovery. Las Vegas only two hours south has played a major role for dissemination and flow of products to the west. Perhaps St George will just have some associative attention and luster brought into the area with being more known by businesses because of our new run way capacities.
St George does have an influx of dollars by second home owners and retirees that generally will spend money here. However, it appears we also need a mixture of worker bees and St George jobs to help temper real estate values from out pacing real economic demand.
Nationally the Housing Market Affecting the Job Market and Visa Versa
Think about it, if people can't move-about, through getting relocation needs met, then our economy is inhibited. They will have greater difficulty finding that right opening for themselves in that particular skilled job emphasis or just being able to make it happen, to help harness value and monetary income, both for themselves and the good of that company and for the development of our economy.
Another factor I had not thought about before comes for the notion that I've assumed that employers have new jobs for workers, but they cannot get that worker to relocate because of housing relocation problems. However, perhaps what is happening more when we think about things persisting as they are with unemployment, is that perhaps there are fewer job creations available. Maybe this is because of the market and economy not being good overall inhibiting employers to innovate and create.
This has been an explanation of real estate supply and demand and how possible influences of greed, the huge fluctuations of home prices and government regulation has not been good for our St George real estate market, but that the general good appeal of the area has attracted future stabilization.
