August 2014 Market Report
The August 2014 Market Report for St George area Real Estate is continually evolving and fluid in the way the market is moving. In August, new listings were down, closed sales were down, and the median sales price was down. Inventory increased by almost 18%, and building permits were down by nearly 40%. This is a great signal for anyone looking to invest in real estate. When inventory is high sellers are typically competing with other sellers to sell their home. This creates a favorable circumstance for buyers.
Another important factor in the equation is the continued lower interest rates that are hovering around 4%. Real estate in St George has historically been a great investment. Give me a call if you are interested in finding an investment property. If you are trying to build a retirement portfolio, real estate is a great tool to building wealth. Even though the St George Real Estate market has slowed a bit, history shows that it has always bounced back. As with any investment it is wise to buy low and sell high. In real estate a nice rental can provide tax benefits along with a continual flow of income. If you are interested in purchasing a rental, but are not excited about becoming a landlord, there are ways around that. A good property management company can take care of your investment, and make sure that only qualified renters live in your rental. I can recommend some great property management companies, if you don’t know of any.
When looking for a rental it is good to make sure rentals are allowed in the area you are looking at. If the home you are considering buying is in an HOA or a home owners association, obtain a copy of their CCR’s (covenants conditions and restrictions) to make sure rentals are allowed. Some locations allow rentals after a year of ownership, while others have a waiting list with a limited number of rentals allowed. This may sound harsh, but too many rentals in a given area will actually diminish the value of your investment. As with any investment it is a good idea to meet with your financial planner or CPA to determine if a rental is a good idea for you or not.
In summary if you are looking for a way to build your retirement you should take a look at obtaining a rental property to help.