ST. LOUIS, MO/April 17, 2017 (STLRealEstate.News) Only a quarter into the New Year, and the local real estate market is heating up along with the weather, sources report. Though experts predicted this kind of trend given the low inventory of homes compared to the demand in both St. Louis and the greater United States today, the numbers coming in are still certainly formidable regardless. Last year’s first quarter was hot, but this year’s is topping that with closing up to 5 percent and sale prices up nearly 4 percent.
Coldwell Banker Gundaker President Jim Dohr stated that prices are rising just a little fast than last year, which is not surprising given that the supply of homes in St. Louis is at an all-time low today. Many are speculating why the jacked increased prices, and others are wondering if the trend will cool off when home construction finally catches up with the demand today.
“Credit is still very tight. There’s a lot of millennial borrowers who have a fair amount of college debt. College debt has tripled in the last ten years, and that’s keeping people from being able to qualify for loans,” said Dohr. He makes a good point, indicating that there are indeed homes for sale, but the problem is that the incoming generation doesn’t have the financial means or support to secure one for themselves. It’s a trend many are worrying will have adverse effects on the health of the real estate market moving forward.
Dohr went on to state that in St. Charles Count there’s only a two-month supply of homes of the market right now. They like a six-month supply. That is typically the amount that is required for a market to be deemed healthy today. Overall, homes there are selling 16 percent faster than they did at this time last year.