Status of the Southern Utah or St. George area Market

First of all, this is my opinion. I am not the number one agent in St. George, and I do not profess to know everything about our market, but this is how I feel about it, and why.

I believe the major influences in our market are macro influences. In other words, the things that are affecting us are affecting everyone. In speaking with a friend that is far more educated than am I about this recently, the biggest pressures we have on our economy right now are the following:

1. Politics: Lots of folks are in a standstill while they see how this turns out. Meanwhile, interest rates are creeping up.

2. Energy Costs: Back in 2005, when the market was good, I went to St. George Ford and bought a beautiful brand new F-250 diesel truck. My family wants to go camping on Beaver Mountain this weekend. Let’s see 120 Miles each way, pulling a trailer - 10 miles to the gallon (x) $4.80 a gallon... Need I say more?

3. Debt: Some of us are so in debt, we couldn't borrow a peanut butter sandwich. Most loans right now, not counting FHA, which is becoming a very popular option these days, are requiring a minimum of 10-20% down. My guess is if the average American has about $8,000-$12,000 in credit card debt, it is going to be tough to save up the $20,000-$50,000 to get into a house.

What does all of this mean if you want/need to sell your home?

If you don't have to sell in the next 18 months, great, don’t. If you don't have to sell today, but you might have to any time in the next couple of months, by all means get it on the market now. Interest rates are ticking up, and there are no indicators to me that say it is going to be any better soon.

Wait a minute, I want to buy a home!

I think a good deal now is a good deal always. Though we may not be at the very bottom of the pond, I think we are in the murky mud just before your foot stops. Don't get lured into thinking that REOs (Bank Owned), short sells are going to be the key to your success. I am finding most REOs are priced just barley under market, (with some exceptions, right Mr. S?) and by the time you fix them up, you could have stayed with a more conventional deal, had fewer headaches, more negotiating power, and less to fix up.

Short sells, though I list and sell them myself, are only successful about a 35% of the time as a national estimated statistic. (I do a little better than that, thankfully). I believe a good ole' fashion seller, selling for at, or just below "market value" is your best bet, unless you have time to wait on a short sell, or the time, money, skills and ability to bring an REO up to speed.
That being said, you truly can get a great deal, once in a while on an REO, or short sell, it just takes more time, and you have less negotiating power in the process. It's more of a take it or leave it proposition, and they are always sold as-is with no warranties.

That's what I think. Feel free to chime in. I would appreciate your thoughts to be posted right on the blog rather than via email. Thanks for doing that.

As always, if you want to search the MLS or have specific questions about Southern Utah or St. George Utah real estate, let me know. I will be happy to get them answered. You can always get more information at www. joelangston.com