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2016-01-20 21:13:38
Is Now a Good Time to Buy a Home?

 

 

January 20th, 2016

Is now a good time to buy a home in St George?

 

St George Realtor

        Timing the real estate market is a bit like throwing your money down on a roulette table in Vegas. Where that wheel will land is anyone’s guess. The same can be said for the real estate market: when will it hit its peak or bottom? Interestingly, the only way to know if real estate prices have hit their high or low point is when they begin rising or falling.  Take a closer look at some of the same economic trends that the experts keep an eye on when forecasting housing market trends.  

Jobs: The national unemployment rate is one indicator of what might happen in the housing market. When rates are low, folks feel confident about spending money. More buyers in the market means more competition, causing prices to rise.

In the 'Whats up Down South Expo' this past weekend at the Dixie Center,
Lecia Langston, our regional economist with the Utah Department of
Workforce Services, said the county can expect to see a steady rate
of job growth as the market continues to stabilize.

Unemployed folks typically don’t buy houses. People that are worried about losing their jobs don’t either. During times of high unemployment, home prices fall because there are more homes for sale than buyers in the market.

Lt. Gov. Spencer Cox touched on the topic at the Expo and
said Utah’s unemployment rate is currently at 3.6 percent,
which is below the national average of 5.6 percent. 

Inventory: The number of homes on the market – known as the “inventory” in real estate lingo – is another indicator of the direction the housing market may take. A smaller inventory leads to more competition among buyers. Again it’s the supply and demand theory – when demand outpaces supply, prices rise.

The absorption rate used to determine how much inventory there is in Washington County, has lowered significantly since the beginning of 2015 which means, as stated above, that prices at this time in the market are increasing.

The average sales price of homes last month in Washington County was around $262,000 

New Housing Starts: Developers generally don’t build new homes during a down economy. When they decide it’s time to jump back into the market, prices typically begin trending upwards. It seems obvious that the counties developers and contractors are not slowing down anytime soon. There are many new developments and much building going on in and surrounding St George. It seems we will continue to see steady growth for our wonderful community!

This is great news for the overall housing market and the economy but, if you’re timing the market, it should be a stark reminder to you to get off the sidelines and buy now.

Although gambling at the roulette table is fun, gambling on how much you’ll pay for a house every month may end up being quite painful. Pay attention to economic indicators and talk to your agent about which direction the market is headed.

 

Contact me to help you buy your own piece of Southern Utah!

          -Tanya Smith

 
Blog Archive
2016-02-03 23:02:13
The Home-Buying Wish List

2016-01-20 21:13:38
Is Now a Good Time to Buy a Home?


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