30 Year Loan Rates Down

Freddie Mac announced this week that interest rates on 30 year, fixed rate mortgages are at one full point lower than they were one year ago. This week the rate averaged at 4.78%. Freddie Mac has tracked such averaged since the early 1970's.

Last year at this time the average interest rate was 5.97%. And for the first time since 1991 the 15 year fixed rate was 4.29%. This is down from 4.32% last week. Rates also dropped for five year fixed rate mortgage loans.

Because of the Federal Reserves $1.5 trillion to buy mortgage-backed securities and make lending more available the rates have come down. Economists say that when mortgage interest rates drop below 5% is when we see the real estate market pick up. This recent lowering of the rates can't do anything but help the real estate market rebound.

Between low mortgage rates and the tax credits right now prices have begun to stabilize throughout the country.

If you are interested in taking advantage of these low interest rates and/or the tax credits being offered to home buyers right now please contact us! We would love to help you find what you need or find a realtor that can help you!

Delinquent Mortgages Reach All Time High - Affordable Housing Market

The Mortgage Banker's National Delinquency Survey revealed that in 10% of mortgages on 1-4 unit dwellings are in foreclosure. This is a 2.6% increase since just last year. Without seasonal adjustment, this puts the total number of mortgages in foreclosure at a record high of more than 14%.

Some banking professionals are blaming the unemployment rate for this record high. It was also revealed that most of the loans in foreclosure right now are prime fixed rate mortgages.

Most analysts and home builders aren't making too much of the new numbers because they believe that the market goes in and out of season and they think that we will pull out of this "slump".

On a lighter note, homes are at their most affordable in years. CNN Money states that the median income of families is about $64,000 per year and that if Americans used 28% of their income on housing they could afford 70% of the homes on the market in the third quarter. This is great news for those that just assumed they would never be able to afford a home. Last year at this same time only 56%.

If you are looking to relocate and think you may be interested in the Southern Utah area, we have many great values! Contact us today for more information!

Federal Housing Tax Credit

It was great when we got the Federal Housing Tax Credit put in place and due to that certain real estate markets were able to start rebuilding. Now the Feds approved the extension of this tax credit ($8,000 for first time home buyers) and they also authorized a $6,500 tax credit for repeat home buyers. This is a great opportunity for so many people.

Here are a few key points to remember about these credits.

1. The $8,000 first time home buyer credit is for the purchase of a primary residence.
2. The first time home must be purchased between January 1, 2009 and April 30, 2010.
3. If you purchase after November 6, 2009 you will have an income limit of $125,000/yr. if you are single. $225,000 per married couple that file jointly.
4. For repeat buyers the income limits are $75,000 for single and $150,000 for married filing jointly.
5. The first time buyer credit is equal to 10% of the value of the home, up to $8,000.
6. Any home qualifies for the first time buyer credit as long as it is valued under $800,000.
7. These credits do not apply when you are purchasing a relatives property, an ancestors property, property of your in-laws, etc. No familial interaction is approved.
8. The credit is refundable. What this means is that even if you don't have withholding enough on your return to offset this, you still take it and you will be cut a check for the applicable amount as part of your tax return.
9. These credits also apply to people who have hired a contractor to build a home for them rather than buy an already existing home.
10. If you purchased a home after April 2008 but before January 2009 you do qualify for these credits but you may qualify for other credits.

These are just a few of the most talked about issues regarding the tax credit. You can find a lot of information at the site: federalhousingtaxcredit.com.

If you have further questions about how this can work for you please contact us and we will be glad to help you in any way that we can.

Federal Guidelines on Commercial Loan Modifications

According to an article by the Associated Press yesterday approximately $500 billion in commercial real estate loans will come due annually for the next few years. This is why federal regulators want banks to be more accurate when analyzing their potential losses when doing commercial real estate loan modifications.

The FDIC, the Federal Reserve and the Office of Thrift Supervision released new rules this past week. The main point was that it would be wise to be "prudent" in modifying homes for the benefit of both the bank and the borrower that is creditworthy.

For those creditworthy individuals who have restructured their commercial loans they will not be considered "high-risk" just because the value of the property has dropped below what the original purchase price was. For banks that follow the correct procedures they will be safe from scrutiny. These agencies claim that they will take a "balanced approach" when looking at the risk management practices of the bank they are looking into.

This past week we saw 106 bank failures and we haven't seen that many since 1992. The real estate loans that have gone bad as well as the recession are what is being blamed for this number.

So far this year the FDIC has paid $25 billion for failed banks. It is estimated that over the next four years the cost will be $100 billion. The FDIC plans to charge the banks that they insure in advance for the upcoming costs.

If you have questions about loan remodification or relocating to a specific area please contact us!

Midwest Home Resales Increase

This week the National Association of Realtors stated that home resales in the Midwest increased by 5.7% since last September. This is great news in this economy! The sale prices fell just 1% which made the area the lowest drop in the country. Pretty impressive.

Nationwide in the past year the home resales increased by 8% but prices fell about 8.5%. Fargo, North Dakota saw an astounding 23% increase in number of sales. The article points out the North Dakota's unemployment was also one of the lowest in the nation. Indianapolis holds the highest price gain in the nation for the past few months.

The article points out the the recent tax credit has helped with the numbers this year. Some believe that the only way to keep the real estate market up is to try to keep the number of unsold homes down to a minimum.

While there are many theories on what the market needs to completely rebound it is hard to say for sure. Some areas such as St. George have dipped in value slightly but this dip has helped some buyers find a way to buy the homes that are needed. In this area the number of homes on the market keeps going down because people have started purchased again. Our area is very desirable because of the number of jobs, city planning, so many outdoor activities, a family friendly environment, incredible arts offered and more. Our park system and trails alone are attractive to many who enjoy being outdoors all year.

If you would like more information on the St. George area or any surrounding area please contact us! We would be more than happy to get you the information that you need.

Tuacahn Overview

Tuacahn Amphitheatre is nestled in the Tuacahn Canyon of Ivins, Utah. This wonderful venue is just minutes from St. George and offers an outdoor spectacular like no other. Forget what you have seen of amphitheatres that only host acoustic events or orchestras, this amphitheatre is geared for everything from the acoustic event to the show that needs major special effects.

The theatre department has everything from a live orchestra for most shows, elaborate costume department to a great prop and set design department. The theatre often uses live animals in their plays that are extremely well trained. The staff in the box office and all of the ushers are extremely helpful and kind. There is a wonderful gift shop as well as concessions.

For those who are interested in a whole evening of fun you can join other guests for a pre show dinner and entertainment. This year the pre show dinner was done by Golden Corral.

Right now through the end of the month Tuacahn is featuring the Halloween show "Thriller" which is a great musical event. At Christmas they generally have a live nativity, caroling, train rides and amazing lights for the whole family to enjoy. The live nativity is free and the train ride is for a nominal fee.

Throughout the year Tuacahn hosts concerts. They have previously welcomed groups such as Foreigner, America, the Beach Boys, and many more. As for shows they are going to have Tarzan (the Disney show), Cats and Crazy for You this upcoming season. In the past they have had Annie Get Your Gun, Cinderella, Aida, Les Miserables and many, many more.

We invite you to come enjoy our wonderful theatre in the desert under our clear skies. When you fall in love with our area be sure to contact us for a relocation packet and information on local real estate.

Huntsman World Senior Games

It's that time again when the St. George area hosts the Hunstman World Senior Games. This inspirational event is a boon for the area and St. George provides a beautiful back drop for the participants. There are not many places where you get to complete a triathlon with lava rock, red hills, green trees, ample sunshine and perfect temperatures.

The Huntsman World Senior Games has been happening since 1987. Daisy and John H. Morgan, Jr. were the founders of this international sports event for men and women over 55 years of age. The games hold 26 events in a two week period of time. The preparation is handled by a team of people that work year round and then during the games we have over 2,000 volunteers come out to help support and run the games. The sheer number of volunteers willing to make this happen is awe inspiring.

The Huntsman World Senior Games is about more than the competitions involved. There are events that promote health and well being, knowledge, research and more. These events raise awareness and even provide health screenings for different diseases and cancers.

On top of all of this there is wonderful entertainment and other functions held for the participants and community. There is a sense of unity and group effort that comes into play that is hard to replicate. While the competition is fierce, the fun is what is focused on. The participants are happy for each other and their is a great air of encouragement.

During these two weeks in October (this year it is October 5th-17th) it can be a challenge to get a hotel room so if you want to come be sure to book early! It is very much worth the trip to come and participate or just be an observer and supporter.

As most people do, you are bound to fall in love with this beautiful and friendly community. These games and other events bring out the best in our people. If you find that you may want to live here full time or just have a seasonal home or vacation retreat please click here for a relocation packet. This is free of charge and there is no obligation. We simply want to share our area and help you decide whether or not St. George and its surrounding areas are a good fit for you!