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        <title>St George Utah Real Estate Blog</title>
        <link>http://www.stgeorgeutproperty.com/blog/</link>
        <description>Find news and information pertaining to the St George Utah real estate market.  Paula Smith of ReMax First offers news and updates with relevant market statistics and analysis.   </description>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/3-tips-for-purchasing-a-home-that-has-been-foreclosed.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/3-tips-for-purchasing-a-home-that-has-been-foreclosed.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>3 Tips For Purchasing a Home That Has Been Foreclosed</title>
            <description> <![CDATA[ 
Like most areas, the foreclosure market remains high in St George. 
Buyers often feel as though they can achieve their best deal by 
purchasing a foreclosed home. While this can be true, it is not always 
the case. If you are in the market to buy a new home, here are 3 tips 
for purchasing a home that has been foreclosed in St George Utah.


Use a Qualified Buyers Agent


Using
 a local, qualified buyer's agent is a critical step when purchasing a 
foreclosed home. Using a local agent can be beneficial for understanding
 the possible history of the particular home. One problem with 
purchasing a foreclosed home is that there are NO sellers disclosures. 
You will purchase this home without knowing any history about it. A good
 buyer's agent will typically try to pull the history from an old MLS 
listing, which could provide some detail into the past status of the 
home. For instance, once I checked the history and found that a few 
years back an agent had noted "settling issues on the rear of the home".
 Since there were currently no obvious signs of settling, we were able 
to hire qualified individuals to investigate this concern. Also, a local
 agent will have insight to specific neighborhoods and possible 
concerns. Buyer's agents are aware with industry standards and what will
 likely be accepted on a written contract. I cannot tell you how many 
buyers I've encountered who had no idea they could have a home warranty 
included in their transaction.


Hire a Home Inspector


This
 is not the time to call your friends dad who did construction for 20 
years to come and "inspect" your potential home. Sure, they can come and
 offer their opinion, but now more than ever, it is imperative to hire 
professionals to really check the home. Again, you have NO history on 
this home. Keep in mind there is probably a reason why the former owners
 walked away. It can also be an alert if there was no prior listing 
history, meaning the former owners did not try to sell it prior to 
walking away. Sometimes this is because they know something is seriously
 wrong with the property and they would rather walk than to face the 
next buyer and tell them all of the issues. Now is the time to hire a 
HVAC technician, plumber, and a roofer to offer their professional 
opinion for the key components of the home. If the property has been 
abandoned for any length of time, this can add to the problems that may 
not be visibly obvious.


Financially Prepare for the Unknown


Almost
 always there will be something discovered after closing that may have 
been missed on the home inspections or that was unable to be tested (for
 instance, you cannot test the AC in the winter). Homes that have been 
sitting abandoned for any length of time will almost always develop some
 issues. Sprinkler lines may have busted, pipes may have corroded, or 
there could be some acts of sabotage from the prior owner. One home I 
sold, I happened to be present during the home inspection. This 
inspector was extremely thorough (which is crucial) and as he was 
running the dishwasher I noticed some water on the ground. We stopped 
the dishwasher and he discovered a very small hole in the p-trap of the 
pipe under the sink. This small hole (about the size of a drill bit) was
 located on the backside, so it was undetectable during visual 
inspection. Clearly a disgruntled homeowner who is upset with the bank 
can do some serious damage to a home in very inconspicuous ways. 
Unfortunately the former owners directed aggression at the bank, 
typically only causes the new (innocent) homeowner to be caught in the 
crosshairs. Have some available cash ready for issues that can arise 
after closing. Be prepared for the unknown.


Purchasing a 
foreclosed home in St George Utah can be a great way to save some money,
 however keep in mind that you will have to exercise increased due 
diligence with any foreclosure purchase, which can add to the expenses. 
An undetected problem after closing could very easily erase every cent 
of that "savings" and even turn out to be more costly. If you are 
considering a home in the St George Utah area, contact Paula Smith of 
ReMax First Realty www.StGeorgeUTproperty.com, here you can also view current market reports and statistics that depict our current foreclosure conditions.  Looking for a list of ALL St George Utah listed Foreclosures?  Find a free foreclosure list updated daily here:  St George Utah Foreclosures list
 ]]> </description>
            <pubDate>Wed, 02 May 2012 13:26:47 -0500</pubDate>
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            <guid>http://www.stgeorgeutproperty.com/blog/whats-a-short-sale-short-sale-real-estate-explained.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/whats-a-short-sale-short-sale-real-estate-explained.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>What’s a Short Sale?  Short Sale Real Estate Explained</title>
            <description> <![CDATA[ 
What is a short sale? 
What is the short sale process in St George Utah?  Can I get a better deal on a St George short sale
property?  Short sales and Foreclosures
are NOT the same thing. In “short” a short sale is when a homeowner is facing
financial stress and they are attempting to sell the home for less than they
own on their loan.  While it is the
homeowner who is actually selling the home (the homeowner still owns the
property) it is the bank or mortgage provider(s) that will make the final decision
on IF and for HOW MUCH they will accept. 
Typically here on our St George MLS, short sale listings may be noted as
“third party approval required”.  A
Foreclosure is when the bank has taken the home from the homeowner and now the
BANK is selling the home (also known as REO). 


When a listing agent is attempting to sell a home for a
homeowner as a short sale, it would make the most sense for the agent to
contact the bank and predetermine “how much” the bank will consider accepting
on the property.  Seems simple.  Not so! 
The bank typically will NOT talk to anyone until an offer to purchase
has been received.  So the quickest way
for the listing agent and homeowner to receive an offer is to price is VERY
well.  It’s supposed to be priced at fair
market value, but often they price them down right ridiculously low in an efforts
to achieve an offer (usually they will get multiple offers).  Once they have the offer, the bank will begin
the process.  Keep in mind, the seller
must actually qualify for a short sale. 
Sellers cannot just “decide” they will sell it for less than they owe,
there have to be conditions met and proof of financial distress (sometimes this
is not realized until well into the process creating one of several reasons why
short sales may not “close”).  


All of these buyers see this wonderful home at an amazing
price, nothing compares!  They have high
hopes they can purchase this home for a price close to this listing price.  Savvy buyers sometimes feel they can even offer
a bit lower (since they’ve read articles online that suggest sellers will take
less than asking price).  So the buyer
makes an offer (typically 5-7 buyers make an offer) and they are thrilled when
the owner accepts the offer.  FYI the
owner will usually accept any offer; remember this is only the first step to
begin the process.  Several buyers will
go into a backup position (due to the typically lower price, multiple offers
are usually received). Now the next phase begins and the listing agent (or
short sale company they have hired to facilitate the transaction) can begin
working with the bank on an approval.  This
is when the transaction may read “Under Review” or “only back up offers
accepted”.  The buyer(s) will wait
patiently for a response from the bank; 95% of the time the bank will counter
back at a higher price.  Say you found a
home for $200,000 and you made a full price offer (because homes you saw like
this, were priced more like $230,000), typically an initial offer can take
40-60 days to hear anything, however I’ve seen them take as long as 3 months to
hear back.  


THE COUNTER or THE BANK RESPONSE


So you’ve been patiently waiting for 3 months with your fingers
crossed on your $200,000 offer and the bank finally comes back with a
counter.  They want $230,000.  A $30,000 counter stuns the first buyer and
they walk away, same with buyers 2, 3, 4, 5, and 6.  So now, the listing agent puts the house back
on the market.  It’s still listed at
$200,000 but now reads “bank approved price”. 
It’s true, the bank DID approve “a” price…but they approved $230,000 not
$200,000.  A whole new crop of hopeful
buyers see this home and think there is a good chance they can get this home
for a great price and since it’s already “approved” the process should go much
quicker.  No one wants to pay $230,000 so
the listing agent will explain to the new crop of buyers how the bank countered
at $230,000 but all 6 buyers walked, so they are taking new offers to send back
to the bank hoping to get the bank to come down from their $230,000
counter.  After all…it’s been a few
months.  And so the process starts
again.  


Sometimes the bank will counter for an amount that is
acceptable, IF the listing was offered at a fair price.  Closing a short sale home IS possible, it
just takes an extreme amount of patience and low expectations.  Buyers have to understand that they are not
going to get a $230,000 home for $199,000—it just isn’t going to happen.  Homes are selling for great prices BUT…they
are almost ALL selling for FAIR MARKET VALUE (or close to it).  Occasionally, a bank will counter for a price
even higher than fair market value.  More
often than not, a short sale home will end up going through foreclosure and the
short sale will have been unsuccessful.   A typical successful short sale will usually
take 3-6 months to close.  Keep in mind,
there are so many people involved in a short sale process.  If the homeowners “gives up” and leaves town,
or changes their mind at wanting to proceed (happens all of the time) then the
process comes to a halt.  The homeowner
not only has to qualify for the short sale, but they also must remain
involved.  While it’s not ultimately
their decision on how much the home will sell for (the bank decides how much
they will accept) it is still THEIR home so they must sign all paperwork and be
present for closing.   


So if you’re are looking for the deal of the century, to buy
a home worth $250,000 for $199,000….it’s just not going to happen here in St.
George.  You can achieve a decent price
on a great home, but typically the “deal” is no better than a standard
transaction where you have a motivated seller. 
Actually, I’ve achieved better deals with a motivated seller who
understands they are competing with banks and they drop the price to get it
sold quickly. 


So Why Bother With A Short Sale?


The advantage to making an offer on a short sale can vary
for particular situations.  If you are
looking to purchase a home, but you are not ready to close for a few months
then a short sale could be an option.  If
you are very patient and find a great home, chances are other buyers also competing
for that home will give up.  If you
realize that the home will sell for close to fair market value, and you make a fair
price offer, then there is a possibility you can close.  Short sales are great for investors who are
not looking for their “dream home”. 
Throw out an offer and if they get it, great…if not…try another.  You can obtain a decent deal on a short sale,
but again, that can be achieved with any motivated seller and a buyers agent savvy
in negotiations.  If you are looking for buyer’s
agent, contact Paula Smith ReMax First St George.  Want to see all MLS listed short sales in St George for sale?  Visit:  http://www.stgeorgeutproperty.com/StGeorge_Short_Sale_Property.php  This page will show you homes listed by ReMax St George, as well as all other brokerages and agents in town.  
 ]]> </description>
            <pubDate>Wed, 18 Apr 2012 11:00:17 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/spring-2012-st-george-real-estate-statistics.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/spring-2012-st-george-real-estate-statistics.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>Spring 2012 St George Real Estate Statistics</title>
            <description> <![CDATA[ 
Welcome SPRING! 
Things are warming up, the tulips are in bloom, and once again it's time
to take a look at how things are shaping up in the St George Utah real estate
market.  This real estate statistics blog
will focus on the Greater St George area as well as some attention on the Sun
River St George real estate market.  This will include homes listed by ReMax First St George as well as all other local brokerages.  For
those of you keeping an eye on Sun River, I think you'll find this report
interesting.  I'll be including a link to
all recently sold SunRiver homes that have closed since January.  This will be beneficial for those who may
already have their Sun River home listed or those who are considering listing
your Sun River home, to gain perspective on exactly what is selling. 


Homes That Have Sold in St George


Since January 1, 2012 there have been 571 YTD homes that
have SOLD in the Greater St. George area. 
As a comparison for this same period last year, we sold 605 homes.  Of the 571 sold this year, 191 were of
distressed status (short sale or foreclosure) this means that 33% of the homes
sold were of distressed status.  Back to the
comparison for the same time last year there were 254 distressed sales (so of
the 605 sold last year 41.9% were of distressed status).  Another key element and a necessary ingredient
for market stabilization is the number of homes on the inventory.  Below is a multi-year snap shot illustrating
our favorable conditions.  





You can see that the number of active listings continues to
be on the decline and the months in inventory is on the lower side of the scale
as well.  Making our way through the
inventory will pave the way for the laws of supply and demand to kick in,
allowing stabilization and potentially appreciation.  This should not be confused with an expected
overnight boom, I believe those days to be over.  The process will be slow and gradual and of
course other elements in our world can easily upset this very fragile and volatile
market, and can completely change at any moment.  The optimism comes from the fact that we have
had several months of good (stable) sales, reduced inventory, and we are making
our way through the distressed inventory.


SUN RIVER ST GEORGE REAL ESTATE


Here is the latest on SunRiver St George.  As of today, there are currently 74 ACTIVE
homes for sale in Sunriver.  Of  these 74, there are 7 of distressed
status.  This is actually an all time
high (at least as far as I've been tracking, which is a few years).  Most of these distressed sales are Short
Sales in Sun River, so there is a possibility they can become
foreclosures.  YTD there have been 20
homes sold in Sun River.  Want to see
what homes have sold in Sunriver?  Send me an email and I'll forward the link.  Currently there are 10 homes pending. 


It seems that the
homes that are selling at the moment, are view homes (homes that back to open
space and offer a view) or homes in the lower price point (below
$200,000).  Although the number of
distressed homes is up in Sun River, it should also be considered that the size
of this community is of around 1500 homes--so in comparison to St George
proper, the number is distressed homes is practically non-existent.  It will be interesting to continue to monitor
however, and determine if the trend will continue.  This can force prices in a downward trend for
Sunriver (having to compete with distressed sales) and they have had the luxury
of maintaining a higher price point in comparison with surrounding areas
outside of Sunriver.  While the prices
have dropped within Sun River, the price per square foot has always been higher
than that of comparable homes outside of the community.


Thinking of listing your Sun River home?  Give me a call for a free market
evaluation.  Thinking of purchasing a
home in Sun River?  I've got a couple of
GREAT listings--both are open floor plans offering the desirable 2 bedroom plus
a den.  One has a 3 car garage and the
other has a 2 1/2 car garage with a casita. 
Check them out here:  SunRiver Homes For Sale


Thank you for taking the time to read these types of reports.  If you would like a more personalized report, or if you have a market question--please contact Paula Smith.  If you are thinking of buying or selling in the St George area, I would appreciate the opportunity of be of assistance.  Thank you, have a wonderful day.
 ]]> </description>
            <pubDate>Tue, 10 Apr 2012 11:04:35 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-year-end-real-estate-market-report-2011.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-year-end-real-estate-market-report-2011.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Year End Real Estate Market Report 2011</title>
            <description> <![CDATA[ 
The 2011 St. George year end real estate market report is finally
finished.  In this report, I'll
illustrate the current conditions and compare to years past. I'll also take a
look at area specific markets and try to determine a pattern.  I'll also gaze into my crystal ball and offer
my St George real estate market predictions to those readers who actually make
it to the end of the report.


St George Real Estate 2010 vs. 2011


Take a look at this Yearly Market Comparison (Greater St.
George Residential only).  This shows
that our sales are up 7.1% over last year and also shows that the median
Sale Price is DOWN 5.4%.  In a
quick comparison looking at 2009 to 2010 we had an increase of 14% in sold
homes and the Median Sale Price had dropped 11.5%.  So, our sales are still up and our prices are
still on the decline--however it IS getting better.  It's also interesting to note the Number of
New Listings in 2009 to 2010 was almost the same (with a difference of only 8 homes) and comparing 2010 to 2011 we
are down 11.1% (a difference of almost
500 homes).  This is good, we are
still selling homes and our inventory is reducing, a formula necessary for
stabilization.





Foreclosure Market Statistics in St George


The St. George Utah foreclosure market will continue to be a hot topic
through the rest of 2012.  It's sort of
the steering of our proverbial market ship. 
So let's get into the facts: 
According to Jared Plewe of Title Guarantee (a local title company here
in St George) foreclosures are on the downward trend for 2011 noting  there were 997 LESS notice of defaults (NOD) filed in 2011 than 2010 (notice of defaults are step one in the
foreclosure process).  There were a
total of 1165 Foreclosures in 2011
as compared to 1515 in 2010
(interestingly there were 51 in 2006). 
This is for ALL of Washington County for ALL property types.  As of today (1-23-12) the MLS is showing 62
ACTIVE REO (foreclosure) homes, 57 PENDING, and 752 SOLD in 2011.  So by my calculations this leaves about 25%
of the foreclosed homes unaccounted for (banks holding inventory?)--there is a
margin of error on these calculations (some of the sold homes will have been foreclosed
from 2010 inventory).  I did speak to a
local bank who has been holding some foreclosed LAND.  So many parcels were subdivided during the
"boom" but by the time they came out of the process and were ready to
be sold--St. George hit "bust". 
Land lots hit the inventory by the hundreds at a time when only a handful
were selling.  


On a brighter side, it
does appear building is making a comeback and developers are on the prowl for
some of these lots.  They've been able to
scoop up large parcels for a fraction of the price.  Several builders are doing very well and
selling out build jobs on entire subdivisions. 
This is wonderful for the economy as it is putting people back to work
and buyers are enjoying the customization ability for new construction.  St George Residential building permits were at:
 368
pulled in 2011 as compared to: 284
pulled in 2010; 234 pulled in 2009,
261 pulled in 2008 and 867 pulled at the end of the boom in 2007 (an astonishing 2,048 pulled in 2004 which was our peek over the past
decade).  Still, the resale market
will offer more bang for the buck.  It's
just getting more a more difficult to find the coveted "turnkey" home
at an excellent price (without fierce competition).  Builders are becoming competitive with their
pricing, however they have scaled back on quality and have gone 2000 on us,
with "back to basics" on finishing work (laminate, linoleum etc...).  Hey we won't complain, laminate has come a
long way!  Besides, you can still select
granite and stainless steel--you'll just pay a premium for it.


SunRiver St George Market Conditions


Sun River is a premier adult community in St George.  We have inquires by the thousands from buyers
who are considering relocation to Sun River. 
Although this is only a subdivision within St George, we treat it at a
sort of "mini city" as the area has very different market conditions
and cannot be compared with St George proper. 
Prices and comparables are in their own league, and can really on be
compared to other homes in SunRiver.  So let's
take a look at what's going on:  as of
TODAY there are 57 ACTIVE homes (which has been fairly consistent over the past
several months) 3 of these are Short Sales and 1 is a foreclosure (which means
a total of 4 homes are of distressed status). 
This number is higher than years past, as typically there is only ever 1
or 2 homes of distressed status.  This
number is still considered EXCELLENT when compared to neighboring St. George,
or the rest of the nation for that matter. 
10 homes are pending.  107 homes
were sold in SunRiver for 2011 as compared to 87 in 2010. I've got a couple of fabulous
SunRiver homes for sale, be sure to check out my Sun River St George Real
Estate page to find ALL MLS listed Sun River homes.


Crystal Ball Predictions, by Paula Smith RE/MAX First


Thank you for reading my blog, you're either a trooper for
going over all of the above information or you just skipped it to read my
predictions--either way--I'm humbled by the fact that anyone takes the time to
read my report and I appreciate all of my readers and clients.  


I believe 2012 will play out very similar to 2011.  I think our inventory will continue to decline,
and our Foreclosure activity will also stabilize.  As we make our way through the inventory, the
laws of supply and demand will surly kick in, which could make for an
interesting possibility for a spike (appreciation).  We have had a couple of these spikes on
select homes and neighborhoods already, so it's not totally out of the question
for this to continue.  We DO have buyers,
and the competition among them can be insane. 
The most sought after price range continues to be the $200,000 to
$250,000 range, however take a look at the stability among most price ranges as
depicted below (sold Residential Greater St George)





If you have a home in GOOD condition (free from needed
repair) priced well, clean, offering neutral tones, and a marketing expert to
list it (If you need a reference, consider the author of this post) then you've
got a recipe to get your home sold quick. 
On a couple of my listings in 2011 we were able to achieve multiple
offers resulting in:  at or ABOVE asking
price.  For sellers who dare to test the
market with higher prices, I'm sorry to say you will not achieve the results
you desire.  The days of "let them
make us an offer" are out and buyers seem to gravitate to the more
thrilling aspect of a lower price and jumping on the bidding wagon.  


Thank you again to all of my clients who have helped me to
elevate my career.  Without you placing
your trust in me, I would not have the business I've built.  Each client is a pillar to my foundation and
it will always be my intention to never lose sight of that.  


It should also go without saying that I do not actually own
a crystal ball, and my predictions are just that...predictions.  This blog is my opinion about the market
based on facts, knowledge, and good ol' history (and a wee bit of
speculation).  Cheers to an even better
2012!  Contact Paula Smith of RE/MAX
First if you are considering buying or selling. 
View all MLS listed homes on my website:  http://www.stgeorgeutproperty.com/idx
 ]]> </description>
            <pubDate>Mon, 23 Jan 2012 15:07:54 -0600</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-statistics-november-2011.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-statistics-november-2011.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St. George Real Estate Market Statistics November 2011</title>
            <description> <![CDATA[ 
I've neglected the housing statistics for so long, that even
I am excited to find out what's going on the in the St. George real estate
market.  Thanks Brian for the push I
needed to get this information up to date.


Let's take a look at the general stats for greater St.
George residential as of November 15, 2011:


ACTIVE: 1,171 of the 1,171 "active" 295 homes are
distressed which equates to 25% of our inventory is of distressed status (short
sale or foreclosure).


SOLD:  249 (from
10/1/11 through 11/14/11).  Of the 249
SOLD homes, 78 sold homes were of distressed status which equates to 31% of the sold homes were of distressed status.


Hurricane Utah Real Estate Market Conditions


Hurricane has been badly neglected on these posts, let's
take a look at how our neighbors are doing.


ACTIVE:  214  of the 214 active (residential) homes there
are 66 homes of distressed status (or 30% of the listed inventory is of distressed status)


SOLD:  44 (from 10/1/11
through 11/14/11).  Of the 44 sold homes,
there were 16 distressed sales (or 36% of the sold homes were of distressed status)


St George Utah Residential Year To Date Market Conditions


Let's take a sneak peak at the year end and year over year
comparable sales.  Typically I post these in January,
but let's see how things are stacking up:





We are closing the gap between the RED line (active
inventory) and the BLACK line (sold home) which is necessary for market
stabilization (queue supply and demand!). 
This 2 year review shows gradual, consistent  stabilization.   





 


So here is another of my favorite charts, I
like to call it "what's selling". 
This will show the price range of the 249 homes that were sold to gain
perspective on the most sought after price range for most recent buyers.


 


 


If you have specific market information you'd like to see,
feel free to email and I'll work in into my next post. 


I've got a few new listings! 
For you SUN RIVER ST. GEORGE RESALE buyers, I have a 3 bedroom 3 bath (with
CASITA), and 2 really great FULLY FURNISHED homes that are UNDER $180,000.  I've got one in Santa Clara that has 4
bedrooms and a great view for $199,000. 
Find them all listed here: FEATURED LISTINGS



or for ALL Sun River St George homes for sale click here:


SUN RIVER HOMES FOR SALE


for ALL MLS listed Santa Clara Utah homes for sale visit this link:


SANTA CLARA UTAH HOMES FOR SALE
 ]]> </description>
            <pubDate>Tue, 15 Nov 2011 12:46:08 -0600</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-foreclosure-statistics-september-2011.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-foreclosure-statistics-september-2011.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Foreclosure Statistics September 2011</title>
            <description> <![CDATA[ 
Foreclosure activity and market conditions continue to be a
hot topic here in St. George.   It’s a
condition that affects buyers, sellers, and residents.  There is something going on, a glimmer of
light at the end of the tunnel.  It’s
still too early to officially call it “stabilization”…it could end up being a
train!  It does appear however, that our
St George real estate market may be stabilizing a bit. 


Here are the facts: 
New construction=UP!  More permits
were pulled last month than in any month since October of 2007.  Great news there.  


Notice of Defaults filed: 
up a slight bit in comparison to the prior 3 months, but down
considerably compared to the past 3 YEARS. 
Almost half as many compared to our peak year of 2009.


Foreclosures:  Again,
up a bit as compared to last month but down considerably from the beginning of
this year and about half the amount from out peak.  Take a look at this awesome graph provided by
Equity Title in St. George (keep in mind, this is for the entire Washington County, not exclusive to St. George):





Are Homes Selling in St. George?


Yes they are!  It’s
getting difficult out there.   Our
inventory is shrinking and there are plenty of buyers out there searching for a
deal.  This is not so great for buyers,
having limited homes to choose from and often ending up in a bidding war for
the pristine, well priced home that is coveted by all buyers.  Supply and demand people…economics 101.  Inventory goes down, prices will go up.  As of today (September 10, 2011) we have 1188
homes listed in the greater St. George area (compare that to 1,601 active as of
May 2010).  Of the 1188 homes listed, 255
are of Short Sale Status and 51 are Foreclosures.  This means that 25% of our inventory is of
distressed status (compare that to 39%
in May 2010 and 30% in February 2011)
notice a trend there??


What SOLD in St. George Utah?


Since August 1, 2011 (about 40 days) we’ve sold 221 homes.  Of that number, 35 were short sales and 38
were foreclosures.  This means that 33%
of sold homes were of distressed status. 
Just for fun…I’m backtracking on my old blog from May 2010 again, and
noted that 39% of sold homes were of distressed status.  


So, let’s review the facts…The inventory is shrinking (about
10% lower over last year), the number of distressed property is reducing, the
number of sales remain the same, in fact YTD its actually about 3.8% higher
over last year.  What are also down are
prices.  We are still in a very mild
decline and YTD the average sold price is approximately 5% lower as compared to
last year (Greater St. George, residential). 
Building is up, another tool required for stabilization and a healing
job market.  While we certainly cannot
predict what will occur next, the pieces are in place to allow for
stabilization.  Investors are on the
prowl, snatching up rental property which will finally allow a break even with
a minimum down and expected rents.  If
they hold on to it long enough to allow prices to go back up, there is a much
better chance of banking profits…the low interest rates are great for the
mortgage but you sure won’t make anything with a traditional CD or savings.


Are you ready to buy or sell in St George?


I'd like to help.  Contact Paula Smith RE/MAX First in St. George Utah.  Not ready to talk yet?  Check out the inventory for all MLS listed homes in St. George.
 ]]> </description>
            <pubDate>Sun, 11 Sep 2011 09:40:37 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-report-for-july-2011.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-report-for-july-2011.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Utah real estate market report for July 2011</title>
            <description> <![CDATA[ 
This report will explore market conditions for St. George
including the St George foreclosure activity/REO inventory.  I will also include Sun River St George sold
homes and currently listed.  The
illustrations below are for Greater St. George residential as of 7-16-11.


How Many Homes Are For Sale in St George Utah?




Active Listed:  1208


Short Sale Active:  272


REO Active (foreclosed):  46


Total Percentage for Active Distressed: 
26%




How Many Homes Sold Last Month in St. George?


SOLD from 6-1-11 to 7-16-11




Sold:  347


Short Sales Sold:  51


REO Sold:  77


Total Percentage for SOLD Distressed: 
37%




Is the St George real estate market improving?


Take a look at the graph below. 
This illustrates how our Foreclosures are continuing to play an intricate
role in our housing market decline. 
Until the foreclosure activity subsides we will continue in our market
decline.  While the decline is NOT major,
it has been averaging approximately 11% each year over the past 2-3 years (this
is looking at Greater St George as a whole, not specific areas or home types).


2009 Median Sale Price= $186,000
2010 Median Sale Price= $177,000
2011 Median Sale Price (YTD)=  $167,000


 


Sellers are forced to compete with banks (REO’s) and banks are forced
to reduce their prices for a quick sale to remove the loss from their books.  This vicious circle drives prices lower.    On
the bright side…we are making our way through the inventory at a fairly rapid
pace.  Buyers have less to choose from
and the “turnkey” homes that are priced well are getting snatched up in a
matter of days.  Interest rates are still
low.  So, if you are considering holding
out on the market in an attempt to buy at the very bottom—I think we are
close.  My opinion is that the bigger
risk to the “fence sitters” is that rates can go up at any time, and the
inventory seems to be getting to the bottom of the barrel so these picked over
remaining homes require more work.  Banks
are also becoming more stringent on lending with even more regulations on the
horizon.  What a buyer saves on “price”
they will likely make up in “repairs”.  As
I've been saying for the past 2 years, so long as you intend to buy and STAY
for the next 5-7 years, you’ll probably be fine.  History has showed that once we hit bottom,
we have always rebound. 


Sun River Sold Homes


In Sun River St. George, our exclusive adult community, there are currently 62 homes ACTIVE, ONE is a short sale and ONE is a foreclosure.  11 homes sold in the past 45 days.
 ]]> </description>
            <pubDate>Sun, 17 Jul 2011 08:20:06 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-absorption-and-statistics.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-utah-real-estate-market-absorption-and-statistics.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Utah Real Estate Market Absorption and Statistics</title>
            <description> <![CDATA[ 
Here is a St. George Utah real estate market snap shot illustrating market absorption for residential property in St. George for May 2011 and a year to date analysis as well.





Our St. George market is changing.  While it's accurate to state that we have improved, noting that inventory is down and sales are up, it's to soon to determine if we have truly hit bottom and we are now in an upward trend, or if we are simply having a few great months fueled by low interest rates and rock bottom pricing.


May statistics showed (St. George Residential) a total of 1206 active, of which 239 were new listings, 142 sold listings, and 187 went pending.  Just to focus on the last two numbers, it's interesting to point out that a total of 329 homes sold/went pending and only 239 homes are new listings.   The widening of this gap is crucial for true stability and recovery.


Noting the same period last year (May 2010) there was a total of 1385 active, of which 216 new listings, 145 sold listings, and 115 went pending, notice here the gap being smaller.


For the St George Real Estate Market Percentage Seekers: 


2011:  A total of 1206 active and 329 homes sold/went pending= 27% homes sold (closed or got an offer)


2010:  A total of 1385 active and 260 home sold/went pending= 18% homes sold (closed or got an offer)


Again, a nice illustration of a market trending in an upward pattern.  Here's where things get ugly, specifically for sellers:


May 2009  MEDIAN SALE price:  $208,000


May 2010 MEDIAN SALE price:  $169,000


May 2011 MEDIAN SALE price:  $150,000


I've been noting an average yearly decline of about 12-15% per year, the numbers above follow a similar pattern.


What's the prediction for the St George Real Estate Market?


Ahhhh, my favorite question.  If only I knew for sure.  So here is my conclusion and opinion:  I can see that we are really burning through our inventory at a fast pace.  While home prices continue to decline, the "pick of the litter" homes are few and far between.  It's difficult to find what most buyers want:  a larger home, newer, $250,000 or less, and not in need of major repair.  When these types of homes come on the market at a great price--there are multiple offers sometimes within HOURS.  So buyers are forced to pick though the inventory that's left, and the only way buyers are willing to offer, is when the home comes with a nice price tag (unfortunately adding to the decline of prices).  So long as we continue to burn though this inventory, supply and demand will kick in following historical trends of elevated prices.  What could be lurking in the shadows however, may be a surplus of "shadow inventory" the banks have not yet released on the market (or have not yet foreclosed on).   I stand by what I've been saying for months:  so long as you plan to buy and STAY for a few years, you'll probably make out just fine.  If you think you may buy then sell in the short term, you may in fact end up selling "short". 


Should I sell my St George Home Now, or Wait for Market Improvement?


I do NOT believe that sellers should cling to the above opinion and hold off selling in hopes of achieving a higher price.  We are STILL in a downward trend, and will likely continue through the year mimicking patterns of the prior 3 years (12% per year for 3 years is a 36% decline).  So while stabilization is potentially on the horizon, I believe we will experience that stability for a few months before a GRADUAL upward trends begin.  So essentially, it could take another 12-18 months just to get back to where we are TODAY.  If you're not happy with the price your home will get today, then my opinion is you'd better plan to stay for quite some time.  If you need to move (and sell) within the next 12 months, then I suggest taking the hit now.  Hire an agent who will sell your home, not just list it.  That's another topic! 


If you are a home seller or buyer, I'd love to hear your questions or opinions!  Comment below and tell me what you see.  View all homes for sale in St George and Washington County:  St George Utah Real Estate
 ]]> </description>
            <pubDate>Sun, 05 Jun 2011 10:43:35 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/the-down-payment-saves-money.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/the-down-payment-saves-money.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>The Down Payment Saves Money</title>
            <description> <![CDATA[ 
Are you considering a home purchase in St George, Utah?  Here is some useful information regarding your down payment.  A down payment is the amount of money that a buyer puts down on the home they are purchasing. That is simple enough to understand.  However, the importance of a down payment goes beyond just that explanation.


Simply put, as an example, if a house costs $200,000 and the buyer puts down 10 percent, or $20,000 toward the purchase, they will need to be approved for a mortgage of $180,000.  The down payment basically lessens how much of a mortgage you need to take out.  This may be the difference between qualifying for a mortgage or not.


However, the benefits of making a large down payment are much more far reaching than simply a smaller mortgage.  As the buyer pays month after month, year after year, on that mortgage, the $20,000 down payment translates to a lot more money because it means less money in interest is being paid out on that mortgage. Interest does you, the home buyer, very little good.  Interest paid is just money out of your pocket with no return.


Down Payment Required for St George Home Purchase


That example doesn't apply to many traditional conventional loans which require a 20 percent down payment. Taking that into account, your $200,000 home with this larger down payment of $40,000 would mean a $160,000 mortgage.  At a 5 percent interest rate on a 15 year mortgage, that translates to about a $7,000 savings in interest alone.  Consider you'll also be paying about $100 less on a monthly payment basis, and your big down payment will soon pay for itself.  In other words, the bigger the down payment, the better off the home buyer will be years down the road.


Usually home buyers who already own a home have equity in the current home to use as a down payment for a new home. So, these second time home buyers utilize conventional loan products tailored to owners with equity.  Some of these loans may only require a 5 to 10 percent down payment.  However, as you can see, it is to the home buyer's best interest to bump that up whenever possible.


St George Utah First Time Buyer


Of course, many St. George Utah first time home buyers are young people who may not have had the time to save up such a large down payment.  For these home buyers, there are loan products available that are more conducive to a smaller down payment.  These unconventional loan products include well known names such as the FHA or VA loans.  Many of these loans have down payments as low as 3.5 percent.


There are also community and state programs that make it their business to sell the idea of home ownership as a way to add value to the region.  These loan programs make it easier for a first time home buyer to come up with a down payment.  Improving the value of property throughout the community is the strategy behind these unconventional loan programs.  However, even these programs better serve the home buyer who has a larger pot of their own money to put down.


St George Utah Buyers Agent


Step one in a home search should always be to talk to a loan officer about all your options regarding a required down payment, then choose the program that is best for you.  Your ultimate goal is to save the most money when the mortgage comes to a close.  Work out the figures and you'll agree the bigger the down payment you can afford, the more you'll have in your pocket when you burn those mortgage papers.  Your next step will be to work with a trusted buyers agent who can assist you with evaluating properties and offer objective opinions suited to your specific criteria.  Paula Smith is a St George Utah Buyers Agent, contact me today to begin your St George real estate search!  You can find all St George MLS listed property on my website:  St George Utah Real Estate
 ]]> </description>
            <pubDate>Sun, 15 May 2011 08:18:07 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-conditions-recap.html</guid>
            <link>http://www.stgeorgeutproperty.com/blog/st-george-real-estate-market-conditions-recap.html</link>
            <author>paula@stgeorgeutproperty.com (Paula Smith)</author>
            <title>St George Real Estate Market Conditions Recap</title>
            <description> <![CDATA[ 
How is the real estate market in St George?  Is there still a lot of foreclosure activity
in St George?  Do you think the market
has stabilized in Saint George?  Has
there been any improvement for the real estate market?  What do you think will happen in the next 1-3
years in St. George real estate? 


These are my “daily questions” from most St George Utah real
estate buyers and sellers.  I’ll try to
address the current market conditions and offer my opinion for that last question
too.


It’s important to note that for the third straight month,
Notice of Defaults (NOD) is down.  NOD’s
are sent out “pre-foreclosure”.  It’s
when the homeowners are behind in their payments and it is the first step the
bank takes to start the foreclosure proceedings.  Not all NOD’s will become actual foreclosures,
however many will.  It’s also interesting
to note that we are also down in comparison with the past TWO years!  This could be a sign of stabilization.  Actual foreclosures for the first three
months is comparable in numbers to last year, here are the total actual numbers
in Washington County:  





Let’s take a look at homes that have sold in the Greater St
George area as well as the SunRiver market conditions.  March 1, 2011 to April 28, 2011 (Greater St.
George, single family homes) there were a total of 298 sold as compared to 346
for the same period in 2010.  Of the 298
sold home, 127 were of distressed status (short sale or foreclosure) which
means 42% of homes sold were distressed property as compared to 46% for the
same period in 2010.  SunRiver had a
total of 15 homes sold during this period compared with 19 sold same period
last year.  Of the 15 homes sold only ONE
was of distressed status.  This is
typical for Sunriver, having few if any, distressed sales.  By the way, I’ve got a new Sunriver listing
(shameless plug) please check it out here: http://www.stgeorgeutproperty.com/listing/cms/15/



Currently, there are 1654 homes ACTIVE in Greater St. George
and 254 have gone under contract (pending) since March 1st.   Below are a few graphs that will break down
the statistics by price range for those of you specific number chasers.   My opinion is that the market seems to be
improving a bit.  It will take a few
months of monitoring to determine if this is just a mild “peak” before an
impending “low” or if in fact we are on the road to recovery.  If the home is priced well, and in decent condition,
we are getting multiple offers in a matter of days—sometimes HOURS.  


If you are a buyer who likes to “think before
you act” then you will find yourself thinking about an awful lot of homes!  You must act quickly if you find a home you
like.  If you are not already working
with a buyer’s agent, consider doing so. 
You will realize that as a buyer, you are protected with our Purchase
Contract and you will have plenty of time to be sure the home you acted so
quickly on, is (or is not) the perfect home. 
Contact Paula Smith if you are interested in Buyer representation.  If you have a home you’d like me to list and
include in one of my shameless plugs—give me a call!



 ]]> </description>
            <pubDate>Thu, 28 Apr 2011 10:45:00 -0500</pubDate>
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