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"St.George Real Estate Inventory SHRINKING? Did he use the terms “St. George Real Estate” and “Bidding wars” in the same sentence? I thought St. George real estate was experiencing a BUYER's market!?!?" 

Well we are…. technically. Yes, we mentioned St. George Real Estate and Bidding Wars in the same sentence, and NO it’s not late 2005. 

Available St. George Real Estate inventory has been shrinking…by 29% since this same time last year. Simply, St. George real estate is "stuck" between a Buyer and Seller market. 

In our November Larkin Group St. George Real Estate newsletter we discussed the fact that Southern Utah housing had DRAMATICALLY improved over the past year or so. On the heels of that newsletter the Salt Lake Tribune ran a piece outlining the improvement of St. George real estate and decrease​ in St. George real estate inventory. Article: St. George Housing Market Showing Signs of Recovery. 

Bidding wars…really? In the past 7 days, the Larkin Group has received a total of 12 offers between 3 different listings. 6 on one, 3 on another, 3 on yet another. Bear in mind that the first two homes mentioned had been on the market less than one week…. ONE WEEK!  It's shades of the 2005 St. George real estate boom, only the bidding wars are now happening because

a.     St. George housing is so affordable, and

b.     Available St. George real estate inventory is shrinking

Specifically, 8.28 months of St. George real estate inventory were available as of December 5th, whereas 11.14 months of St. George housing inventory were available 1 year ago at this time. 

What's in store for St. George real estate? I guess we don’t exactly know. Currently,  inventory is shrinking, which is creating bidding wars, which is stabilizing housing values, which will eventually INCREASE property values, we just don't know ​when. 

Frankly, St. George real estate has NEVER been more affordable. This isn't just St. George Realtor-talk, a. k. a. “cheerleading” as some would refer to it. This is a mathematical, economical, HISTORICALLY PROVABLE reality. Despite unemployment figures, St. George real estate is as cheap as its’ been in years based on incomes of those employed, and mortgage interest rates are at their lowest point…ever. This equates to affordable St. George real estate.

For St. George Home BUYERS: Be prepared for a competitive offering situation and stop freaking out about this fact. Just because you have to pay MORE than the list price doesn’t mean you’re overpaying. If Costco put $200 North Face parkas on the floor for $50.....how many would they sell? ALL OF THEM. Would someone ask for a discount? Most would be ecstatic about getting them at that price!

For St. George Home SELLERS: YES you can sell your home in this market. The Larkin Group has managed to sell over 150 listings in 2011 alone. You can do so in 120 days or less. This isn’t about giving your home away either. It’s about properly pricing and preparing your home for sale based on what the Washington County housing market will support.

Stay tuned for more on the continuing saga of St. George real estate inventory. 

 

 

Bidding Wars?! A Tale of 2 Real Estate Markets

by Jeremy Larkin

"But Jeremy, I offered above full list price and STILL got beat out! What gives?

If I had $5 for every Buyer who has been shocked (and dismayed) about having to "compete" for homes in this so-called "Buyer's" market, I'd have a nice little vacation fund built up.

Today we talk about

  • the "Tale of 2 Markets", those listings that are "in" the market, and those that are "out" of the market;
  • why Buyers are getting into bidding wars in St. George, Utah as well as other Western markets,
  • and also why Sellers have to get in the "critical 20%" if they are going to sell.

Below this video is a copy of the chart I discuss in the video. Enjoy!

 

Lipstick Needed for Pig - September Sales Figures are in!

by Jeremy Larkin

Look, I'm not going to sugarcoat this: Sales were down in September, the Economy is a mess and the Media isn't helping in any way shape or form. This is what Washington County Real Estate Sales have looked like for the past 3 months:

  New Listings Active Listings Sold Listings Months Inventory
Sep/2008 768 6,292 183 34.38
Aug/2008 818 6,403 227 28.21
Jul/2008 935 6,501 232 28.02

That last column is what we call the "absorption rate." 28 months of inventory was not good. 34 months of inventory is LESS good.

The flip side?

  • Credit actually IS available and we continue to see people buy and sell homes.
  • There are so many good stories out there, but nobody is telling them.

We just sold a home for 3 sisters from Idaho. They had held this condo in their family for many years and made a nifty profit. They were REALLY happy and it was closed and recorded just 38 days after it hit the market.

We assisted another young couple get into their first home last month and they are tickled pink. It was a bank-owned property, priced extremely well, and it got them out of a small apartment.

Then there is another family living in my immediate neighborhood whose' house is under contract to close sometime next week. They have owned it for 3-4 years, will take a nice little profit, use it to pay off some debt, then rent a larger home for a while preparing to buy again down the road.

I understand it is tough right now...BOY do I understand it. However, there really are good things happening for some people, housing values are getting back in line for the "everyman" and tremendous opportunities are surfacing for investors.

When all else fails I count my blessings every day to have a wonderful wife, 4 hilarious little kids and for every chance I get to enjoy the simple pleasure of pedaling and suffering on my mountain bike or road bike.

If you have any good, OR bad stories to tell about this market is affecting you, send them on over.

 

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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

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