I was out showing a couple from California a beautiful home with incredible views that was about 5,000 square feet with all the extras when one of them asked me the question I get almost everyday, “How long until the real estate market starts to improve?” Most of the time I just give a quick “feel good” canned answer that the real estate market is coming back soon. But the real truth of the matter is that THE REAL ESTATE MARKET WILL TAKE A LONG TIME TO RECOVER. The good news is to the average American, they won’t see too much change over the next few years. I personally don’t want to see big changes happen and I really don’t want interest rates move up or down. I want to see slow and steady improvements which I think will start to improve real estate.
For those in the real estate business we are seeing some steady indicators that show some improvements. From a local standpoint, the Washington County real estate market still heavily relies on folks from the Wasatch Front to buy 2nd homes or who are looking to retire in sunny St George. Having never lived in Utah since moving to Southern Utah about five years ago, it has always been very interesting how much these guys up North want to live or visit St George on a regular basis. This is the main reason why I feel that this market is going to improve based on the strong 2nd home market.
From a national standpoint, real estate still has some issues to work out. With a weak economy, higher than normal unemployment, loads of consumer and national debt we have lot longer as far as from a national real estate market. We also rely quite a bit on the government backing up private lenders. Let’s just pray the rates stay low or else we are all in trouble!
As I was finishing my last showing with this couple from California I asked them a little bit about their current home situation. It was built in the 1960’s and has never been remodeled and is about 2400 sqft on a half acre in a desirable area in Southern California. It was recently appraised for over $1,200,000 and they have all their neighbors interested in buying it when they put up on the market next month. That’s when I decided that the real estate market might be coming back quicker than I thought!!