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Real Estate: Warren Buffett Says You Should Buy Some. NOW.

by Jeremy Larkin

Warren Buffet says we should buy Real Estate. Now. 

If you haven't already watched the video, I'll tell you something that you probably already know, that they shared in this video: A really great way to learn how to build wealth, or become a professional rugby player, or maybe a world-class tight rope walker....is to listen to those who have already done it. Well. 

I can't comment on the national markets, but I can say without any hesitation that St. George Real Estate is turning the corner. Let's take luxury home enclave Stone Cliff for example: 3 years ago there were 50 or more properties for sale, you couldn't give em' away. Fast forward to 2012. I was told by an inside source that in the past 3 weeks, including the 2 weeks of the 2012 St. George Parade of Homes, that the Stone Cliff Developers ALONE (not including private Sellers), sold 10 lots, 3 custom home build jobs, the model home, and the actual Parade home was sold prior to the parade. That's a MAJOR shift!

St. George housing has never been more affordable...EVER. Nor has national housing. In a CNBC interview this week Buffett said, "​If I had a way to buy a couple of hundred thousand (THOUSAND!) single family homes right now, I would load up on em'."

​He went on to say, that buying a home is a way to actually "short" the market, also explaining that there are more households being created that HOUSES, and that the balance will come back into alignment in the future. Not only that, leaving your money doing NOTHING does NOTHING. It just, well "sits." 

Well there you have it. ​You didn't hear it from me, you heard it from Warren Buffett. And of course we'll make it easy for you to find that home in St. George. Link: FANTASTICALLY fantastic St. George Home Home Search.

Can Increased FHA Loan Limits Help Washington County Sellers?

by Jeremy Larkin

I've been away a few days and apologize for not getting this info up quicker.  This is fantastic news for residents of any county in the Nation, and specifically for Washington County buyers.  For a complete list of limits for all Utah counties, click here: https://entp.hud.gov/idapp/html/hicostlook.cfm

The FHA was established in 1934 to help borrowers, particularly those with low incomes, purchase homes by guaranteeing banks that those loans would be repaid should the borrower default. But the agency's loan limits have generally lagged behind those of Freddie Mac and Fannie Mae and as home prices climbed dramatically and lenders with looser underwriting standards proliferated the agency became less and less of a player in the mortgage market.

As a matter of fact, FHA insured loans have been mentioned as a possible escape hatch for borrowers who may be unable to make payments on their current adjustable rate mortgages when their interest rates reset over the next year, but that plan has its' challenges.

FHA financing is NOT the same as subprime financing.  It provides financing to borrowers with some credit issues and lower down payments, but it requires documentation of income and strives to prevent “payment shock” where a buyer jumps from a low rental payment to a high mortgage payment

This is good stuff, and in addition to the benefit of current mortgage rates (which I commented on HERE), this will allow many more buyers to realize the dream of home ownership in 2008. 

As a specialist in working with expired listings, I have been asked multiple times in recent weeks, "can this increase help sellers in Washington County?" The jury is still out. The real challenge lies in the fact that according to Lawrence Yun, chief Economist for NAR, as many of 80% of today's Buyers are also SELLERS trying to sell their current home before being able to buy. Ouch.

I better start out with the following disclaimer: I KNOW you are all thinking, "but Jeremy, of course you want us to buy now....you're a dirty Realtor!".....

And yes, you'd THINK that was the case, but I'd like to hope that I'm above car salesman-like sales tactics, and if you are thinking about buying Washington County Real Estate for investment or to live in long term, you'd better pay attention to this post, and in more detail, the Time Magazine Article titled "Ignore the Headlines...."

On one hand I can't see this market not declining further, yet John D. Rockefeller made the following logic famous when he said: "The way to make money is to buy when blood is running in the streets."  And running it is!

Allow me to share the following excerpt from the article:

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be.

To make matters worse, you'll have just spent 1 more year in a place you don't like! 

Here it is - read it and give me your thoughts!

http://www.time.com/time/magazine/article/0,9171,1713483,00.html 

 

 

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Photo of Jeremy Larkin - The Larkin Group Real Estate
Jeremy Larkin - The Larkin Group
Keller Williams Realty
50 E 100 S, Suite 300
St. George UT 84770
435.767.9886
Fax: 435-359-5085

St. George Real Estate - Your premier destination for St. George,Utah Real Estate Listings, Home Values, MLS Search, REO/Foreclosure Info &  St. George Real Estate Statistics.  Serving St. George, Santa Clara, Ivins, Washington, Hurricane, LaVerkin, Toquerville & more! Specializing in REO/foreclosure properties, frustrated Sellers, First-Time home buyers, and Investors. Looking for the most LOCAL St. George, Utah real estate information available? Your search is over!