Market News
Fixed mortgage rates fall to record lows
WASHINGTON – Fixed mortgage rates have fallen to historic lows for a fourth week and are likely to fall further.
Freddie Mac says the average interest rate on a 30-year fixed mortgage fell to 4.01% this week from 4.09% a week ago. This week's rate is the lowest since 1951.
The average rate on a 15-year fixed mortgage ticked down to 3.28%. Economists say that's the lowest ever for that loan.
Mortgage rates tend to track the yield on 10-year Treasury notes. Rates could fall further after the Federal Reserve announced last week that it would try to push long-term rates down further.
The Local Market
The local St. George real estate market continues to be a great investment for buyers. Sales are moving up while inventory is moving down. The hottest segment of the market is properties under $300,000 which comprise nearly 90% of the properties sold. Of this segment properties under $200,000 continue to be red hot with many properties being sold above the list price with multiple offers.
As of October 1, 2011, there were only 643 single family homes and 162 condo/townhomes available for sale under $300,000 in the Greater St. George area.
As of October 19, 2011, there were only 550 single family homes and 150 condo/townhomes available for sale under $300,000 in the Greater St. George area. That is an inventory decrease of 13% in less than 3 weeks!!
As of November 28, 2011, there were only 472 single family homes and 158 condo/townhomes available for sale under $300,000 in the Greater St. George area. That is a 27% decrease in single family homes from October 1, 2011 while condos held steady.
As of December 13, 2011, there were only 452 single family homes and 155 condo/townhomes available for sale under $300,000 in the Greater St. George area. That is now a 30% decrease in single family homes from October 1, 2011 while condos have remained fairly steady.
As of January 16, 2012, there were only 447 single family homes and 147 condo/townhomes available for sale under $300,000 in the Greater St. George area. The inventory trend continues to move down putting pressures on prices as properties are selling faster and higher.
Earlier in November, St. George was just picked by Fiserv, who tracks real estate pricing throughout the country, to have the 6th greatest potential price appreciation in real estate over the next 18 months, with an expected increase of 12%.
With "Notices of Defaults and "Trustee Sales" declining to 2007 levels our real estate market is definitely on the upswing. Combined with historical lows in interest rates, now is the buying opportunity of a lifetime.
Contact us today so we can assist you in taking advantage of this opportunity.
Thank you!
