The Real Estate Market Is Still Hot
Real Estate Market Is Still Hot
Good news the St George Real Estate Market is still Hot. Real estate sales in St George are up 37% over the same time last year. Buyers are still a little cautious due to the uncertainty of the economy. That being said, 37% is a very large increase. Some people are worried that we may be entering a bubble like the one we have just recovered from. Those who have been in the industry watching the trends for years say that the growth that we are experiencing now is different from the terrible bubble that popped a few years ago. The country as a whole seems to be pulling out of deficit real estate values that left so many people in financial straits. The increase in real estate values is not being inflated by Wall Street, but more by true demand. When St George real estate values went south many builders stopped building, allowing demand to consume much of the inventory. This “market correction” was difficult for many people and the increases we see now are much more sustainable.
Of course no one has a crystal ball, nor can anyone guarantee what will happen going forward. It does seem like a great time to buy a home. The reason I say this is that interest rates are still historically low. Sure they have come up from the 3% levels of the past few months but, think back over the last 10-15 years about what the lowest interest rates have been. It used to be we were excited to refinance a house because the rates dropped into the 6% range. With rates in the St George Real Estate market still in the 4% range the timing could not be better. Inventory is still lower that it has been, but with every tick upward in the interest rate buyers choices will also be slipping away. What I mean is, if a buyer is qualified for a $200,000 home at 4.5% they may only be able to qualify for a $180,000 home at 5%. These figures are hypothetical, but illustrate the point I am trying to make.
If you have been waiting on the sidelines for the real estate market to come back, it has. Some buyers wonder, “how come I miss all of the good deals”? It might because good deals are usually not easy to spot. Like anything, investing in, or purchasing real estate in the St George area is not easy for someone that only participates a few times in their life. Using a real estate professional may save you thousands. Since our main focus is the real estate market, and that is what we do every day, it makes sense to let us help you. Using an agent to help you buy a home is especially a no brainer, as the seller pays for our commission. So if you are looking for real estate in St George, Washington County , or Southern Utah in general give me a call I can help!