Housing market reports, news, statistics, and opinions are brought to you by Paula Smith Red Rock Real Estate
If you’re searching for a St George Utah condo with a view, look no further. This private end unit in Blackrock is a gated community in St George, and this is a private location offers a stellar view of the Sunbrook Golf Course and our red mountains. You’re going to be inspired the moment you walk through the door and see the panoramic views from over sized back patio. These red mountain views are what people travel here to witness, and you can enjoy them from the comfort of your new home; from your living room, patio, master bedroom and the guestroom.
October 2017 St George Utah Real Estate Market Report
Fall is upon us and it’s been a wonderful break in the temperatures. Our mornings have been crisp and our afternoons warm, leaving something everyone can enjoy. Hopefully you’re outside doing something around our beautiful town. I know the St George Marathon is currently underway, what a perfect time for our many athletes to partake in this race. If you’re out driving around town, you’ll likely encounter a few detours and our restaurants may become busier than usual, welcome racers and fans and we hope everyone will enjoy St George.View More
What is a “reverse mortgage” loan (or HECM) and why would I ever do that? It’s a popular question on a very common loan here in the St George, Utah area and probably most popular in Sunriver (our larger active adult community). Allow me to preface this by stating that I am an real estate agent here in St George and Sunriver, and I am NOT a loan professional, this is only an article written based on my knowledge and experience having had many clients, as well as family utilize this loan. The examples I’ll use below are only basic examples and no way apply to any particular circumstances.
A reverse mortgage can be obtained by anyone 62+. If one spouse is younger than 62 years old, a reverse mortgage can still be obtained, it will just require a bit more of a down payment, since the actual down payment is calculated on the age of the younger spouse (to obtain an exact amount you must speak to a loan professional). The short story is (for those who won’t make it through this lengthy article) is you will put around 50% down and you will not have any payments so long as you remain living in the home. The only thing you’ll be paying is HOA, taxes, and insurance (and of course typical home maintenance & utilities). What you WON'T be paying, is a loan payment. I’ll elaborate a bit more, further on.
Again, the short story is….everyone wants to spend $250,000 for a new home, so they’ll have money left for things they’d like to do (or simply have money for emergency or cash on hand). Once we begin searching for homes, the available homes in this price point are typically not checking off all of the “wants” for the buyer. The typical “want” list is more like: 1600+sqft, private backyard, view, newer, 3 car garage, upgrades…. Well….those homes are usually closer to $400,000 (or more, depending on specifics). So what’s a buyer to do? They only want to spend in the $200’s but they want to have the home in the $400’s. This is when the Reverse Mortgage comes into play. The buyer can have the $400,000 home and put their $200,000 down…viola! They got the home they wanted for the price they wanted to pay.
This is the biggest misconception of these loans. The government won’t just “take” your home. Yes, it’s a government loan, but so is any loan. Fannie, Freddie, FHA, VA….it’s all the same. So long as you’re living in the home, the home is yours. Now if you try to move to another home and rent out the Reverse Mortgage home, yes…your home will be sold…BUT….it’s not like this happens overnight without your knowledge—leaving you with nothing. You own the home. If you want to sell it—go right ahead. You’ll be paying off the loan (just as you would any other loan) and you’ll keep any proceeds left over. It’s discouraged to do a Reverse Mortgage loan only to turn around and sell it only because it’s a more expensive loan to have (but you’ll have all of the figures LONG before you sign any documents). The point of this, is that you CAN sell it—it’s your home! The government wont “take” it. If you move from it, they will step in and begin the process to sell it. When the last remaining original spouse passes away, that spouse can still leave the home to a beneficiary, which they can utilize the first year to sort through effects. After a year, the bank will step in and assign a real estate agent to list the home for sale. Once the home is sold, the bank loan will be paid off and if there are any remaining proceeds, it will be sent to the beneficiary(s). If, for example, the economy has declined into a low and the home loan payoff is $250,000 and the home is only worth $200,000; then the beneficiary may utilize the first year, then once it’s sold they will walk away. They will not be billed for the difference.
How does the loan work?
So, in a traditional forward loan, you make monthly payments and part of those payments goes to principal (to pay down the loan) and the rest goes toward interest. In a reverse loan, you’re not paying anything—however the interests will accrue each month. You’ll know the interest rate from the very beginning, so this won’t be a surprise. As an example, perhaps you’ll start out with a reverse mortgage loan of $200,000 and you live for 15 years, then you pass away and leave the home to your family, or beneficiary. Maybe the loan payoff is now $290,000 (again…I’m totally pulling all of these figures out of thin air—nothing has actually been calculated) and the home is worth $400,000. So your beneficiary can use the first year to sort through your things, estate sales, whatever they need to do….the home is sold, the loan is paid, and the beneficiary will receive a proceeds for the difference (less the payoff and real estate transfer fees). Yes, the loan will essentially get larger each month, but that is because you’re not paying anything over the life of the loan.
What type of home can I do a reverse mortgage loan on?
The answer is simple…any home! You can do a reverse mortgage on any home that meets FHA guidelines. The home has to be appraised, just like with any other loan. The biggest misconception I’ve found is that buyers believe they must do the reverse mortgage loan when they first buy the home—if they don’t, they cannot obtain the reverse mortgage loan. This is NOT the case. You can do a reverse mortgage any time you want to. Maybe you’re thinking of moving to St George, Utah but you’re not sure if you’re going to like it. You may consider purchasing a home with a traditional loan (or cash) and then once you decide you want to stay forever (most people do!) then you can apply for the reverse mortgage loan then. Here is a link with more information on a reverse mortgage loan.
If you’re interested in purchasing a home in St George, contact Paula Smith with Red Rock Real Estate today. I can assist you with all aspects of your purchase and put you in contact with a reputable reverse mortgage lender.
This is our June 2017 St George Utah housing market analysis, for the Greater St George area; which includes: St George, Santa Clara, Ivins, and Washington. The stats will also include Sunriver (as well as communities like Little Valley and Washington Fields). I’ll also do a separate report specific to Sunriver within this post.
Time is moving fast, so is the St George Utah real estate market. As of today, there are 734 homes for sale in St George Utah (and greater St George area). This number has been on the steady decline, and an obvious sign to the shift into the “sellers market”. Only two years ago (May 2015) there were 1,303 active homes listed, and one year ago there were 1,065 homes for sale in St George. In two years, we are seeing a 43% decrease in inventory. As for SOLD homes in St George, our year to date (YTD) ending May 31, 2017 was: 1492. Comparing this with 2015 we are about 16% higher (YTD) and comparing last year we are almost 9% higher. We’ve had our typical spike for May and typically another will occur in August. Here is a 2 year comparison.
Sunriver is no different than the rest of the St George Utah housing market. Inventory remains low and prices continue to trend upwards. I personally set a record last year on one of my listings, having one of the smaller available floor plans selling for the highest amount during that time. And recently, I personally sold the very last home priced under $200,000 (two months ago). I’m not expecting to see the “under $200,000” price point again in Sunriver in the near future. As of today, there are 51 homes available for sale in Sunriver, of these—17 are “spec” homes (or new construction). This means that there are only 34 resale homes available in Sunriver. It’s a sought after community, well priced homes having the upgrades that buyers are looking for will sell in a matter of days (sometimes hours!). Here is a market snapshot of the past 2 years specific to Sunriver.
I just did some updating on my website—let me know what you think! Feedback is important, I’d like to provide a user friendly and appealing website. If you’re looking for other statistics for the real estate market or homes sold in St George, Contact Paula Smith and let me know what you’d like to see. I’ve sold the last of my available listings, so I’m ready to list your home. If you’re thinking of buying, reach out—I want to help.
233 W. Mojave Heights Drive St George, UT 84790
Garage: 2.5 Car
Square Footage: 1,700
1763 W. Amethyst Garden Circle
St George, UT 84790
PLUS OFFICE (or Den)
Garage: 3 Car
Square Footage: 2,352
Welcome to 2017, I suspect we will be in for an interesting real estate market ride this year. In this report, let’s take a look at the year end report for the St George, Utah real estate housing market. I’ll include market statistics and information assessing our Southern Utah real estate, and sold homes for 2016 as well as offering my opinions for what to expect in 2017. Let’s begin by showing a 2015 vs 2016 market snapshot. This section will include information for the Greater St George area, including: St George, Washington, Santa Clara, and Ivins (Sunriver is in St George and will be part of this report).
This report will take a look at current sale statistics as well as comparing last year with this year. This report will include residential homes in the Greater St George area (which includes: Santa Clara, Ivins, and Washington).
For November 2016, there were 252 SOLD HOMES. This number is slightly lower than previous months, however as we approach the holidays it is not uncommon for the number of sales to slightly reduce (notice similar results for November 2014 as well as 2015). It’s also interesting to note that the inventory remains low, having under 1,000 active homes listed, since August 2016. It’s likely that sales will slightly increase for December, as buyers are looking for investment opportunities as the year ends.
Bloomington is a very established neighborhood, which surrounds the newly renovated Bloomington Country Club and golf course. There are 2 parks nearby, along with popular walking and biking trails. The community is close to shopping, schools, and it is also within Dixie Power, which will provide the lowest utility rates in the area. Bloomington Country Club is accepting new members, so this is a great opportunity to get in at a reasonable price and enjoy the amenities offered just down the street from this fabulous home. If you have off road toys, this is a great community; just down the street from this home is a popular trail that takes you out into the hills. Take the off road vehicles out for some fun, or drive out to the area where locals enjoy target practice, there really is something for everyone in this area.View More