Home prices in St. Louis are lower than the average for most cities in the US. As of this month, St. Louis home prices are 10-20% below their 2007 peak, and they are likely to continue declining. If you’re considering purchasing a home in St. Louis, here are a few factors to consider. The first is the appreciation rate. As a whole, St. Louis home prices are not that expensive, but they are still considerably lower than the national average. Take advantage of this opportunity to get a low-cost mortgage from Liberty Lending!
In addition to the shortage of inventory, the Coronavirus has added to the low supply of available homes in the St. Louis market. Because of this, buyers are having difficulty finding the right home. Meanwhile, those who can’t afford a home are forced to rent, which is bad news for the housing market. The lack of affordability is good for investors, but it doesn’t necessarily mean that every neighborhood is enjoying the benefits. As a result, some neighborhoods in St. Louis have suffered from disinvestment and discriminatory housing practices.
The housing market here was never overinflated and has remained fairly stable. It is correlated with national trends, which are pointing toward negative equity, which puts more homeowners at risk of foreclosure. In addition, the emergence of a new vaccine could help stabilize the housing market in the region. However, it will still be several years before the market reaches a point where it can stabilize.
According to a study by the Federal Reserve, the average price of a home in St. Louis in the first quarter of 2007 was $133,010. Despite the low price, home prices are still 20 percent higher than the national average. Moreover, hot homes can sell for 4 to 5% above the list price.
Low interest rates are another factor boosting the St. Louis housing market. Rates are at their lowest halfway through 2020 and are expected to continue to fall. This low interest rate spurs more buyers to take action. This is good news for both buyers and sellers. Because there is a lack of inventory, homes are selling quickly and for the asking price. The economy has improved, too, so the real estate market in St. Louis is relatively balanced.
While St. Louis home prices are relatively inexpensive, outside investors should consider the affordability of the real estate market. Single-family homes are available for under $100,000, making St. Louis an exceptionally affordable city for buying a home. Two-bedroom condos are especially plentiful, and the median home value in St. Louis County is around $260,000. This is cheaper than the median price of an apartment in most cities across the country. And, as a result, St. Louis is an affordable choice for many buyers, and Liberty Lending can help make your dream home a reality! Call us today!