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ST. George UT Distressed Properties & Short Sale Information
What Created the Housing Crisis?
Distressed properties and short sale properties are coming more available in the St. George UT area. A few years ago the value of homes drastically increased, allowing people to leverage, borrow, or even sell their homes at prices that were about twice what they were previously worth. There are several reasons for the dramatic increase, and there has been a lot of finger pointing associated with the situation. Unfortunately determining who caused the problem doesn’t help anyone that was affected when the bubble popped. When the housing market corrected itself, thousands of people were negatively impacted, and most homeowners found themselves “upside down” with their mortgages. This is a term that means the appraised value of the home is less, sometimes much less, than what the person actually owes on their home. The amount of Distressed properties & Short Sales in the St George UT Real Estate market are have greatly reduced this last year. If you are interested in receiving updates about the Real Estate market in St George, I will be happy to send you our monthly update, on the values of real estate in St George.
What is a Short Sale?
A short sale is a process a home owner can use to relieve themselves of a home that has lost value putting themselves in a position of owing more on their home than it is worth. The Short Sale is not an easy process and will negatively impact the credit score of the person going through it. When the home is sold at the lower adjusted rate, the amount of money left owing is called the deficiency. The negative impact on a persons credit with the short sale is not as drastic as a bankruptcy. It is important to understand that a short sale will be reported, and will negatively affect a persons credit rating. For many people a ding on their credit is worth the lower house payment, and the reduction in stress in their lives. Like distressed properties in the St George real estate market, there are not many short sales left in the real estate market in St George.
Where Can I Find Short Sale or Distressed Properties in St. George UT?
In St George UT Real Estate market, and in the Southern Utah market in general, the number of short sales have been greatly reduced over the last few months. The banks have done a good job in controlling the number of short sales on the market at any given time. This has allowed the inventory of short sale properties in the St George Real Estate market to diminish without totally devastating the market. Currently in Southern Utah the number of short sale properties are very limited. As of the writing of this article, there were only 14 short sale properties, and 5 HUD listing available. Most of the short sale homes in the local real estate market in St George enter the market with an order pending on them. Finding a short sale property to purchase can be very tricky, and using a professional real estate agent is highly recommended. Investing in a short sale property could create more problems than benefits is the purchaser does not know what they are doing.
If you have been waiting for real estate in the St George market to improve, your wait may be over. The October report from the Utah Association of Realtors indicates that there has been a steady increase in real estate prices in southern Utah over the last 6 months. The inventory of homes available is shrinking. This reduction in supply also includes reductions in short sales, and REO (bank owned) properties for sale. As with anything, when the supply is reduced the demand, or (price) goes up. This means that it is a better time to sell a home than it has been in the last few years. This seems to be a local trend as northern Utah still seems to be unchanged. Southern Utah, and our St George real estate market is more in line with trends in Las Vegas and California. Las Vegas prices have also been steadily rising.The trick for most people is to sell their home while the prices are up, but not up so far they won’t be able to buy another one. If you are looking for distressed properties in the St George real estate market I would be happy to help you.
As mentioned above St George real estate prices are moving upward. In case you have not been following the St George real estate, and national real estate trend in the last few years, you may not be aware that about 6 years ago real estate prices skyrocketed to a super inflated point that could not be sustained. About 2 years ago the market corrected itself and real estate prices came tumbling drastically down. In many cases the prices were much lower than they were before the market jumped up. This situation left many people in a situation known as “upside down” in their home value. This simply means that they owed more on their home than it was worth. This situation was coupled with a recession, and many people were not making as much money as they had previously made. In many cases people were unable to keep their homes. Some had to take out bankruptcy,while others were pushed into a short sale. We will explain short sales and foreclosures later in much greater detail. While this may seem redundant to some, we explain this for young people that may just be entering the real estate arena. There are still some deals in the real estate market in St George, but they can be hard to find.
We Can Help
If you are interested in a short sale, give us a call we will be happy to provide information about homes that are currently listed in a short sale status. Real Estate in the St George area can difficult to navigate without the help of a real estate professional. I would be happy to help you with any of your St George Real Estate needs.