If you’re looking for some investment property in St Louis then you should know that it is one of the hottest real estate markets in the country. Prices have been climbing steadily across the region for a couple of years and finding a good deal is harder than ever. That being said if you can snag yourself a decent property you’re almost guaranteed a great return. But it’s not that easy, inventory is low while prices climb. There are still some great deals in St Louis but you need to have some great agents to help you find them
The median home price in St Louis is up roughly over 5% from last year’s figures and that is trend that has been ongoing for some time. If you got into the St Louis market early then you’re probably sitting on a nice portfolio right now. With mortgage rates still sitting at an all-time low this makes for more buyers than inventory. First time home buyers are having a hard time finding a home.
There is far less inventory available making St Louis a seller’s market. The amount of active listings is down almost 20% from the previous years and the average time on market is roughly 30 days. To have a balanced inventory of houses for sale you need roughly six months’ worth of inventory yet St Louis has have that. This lack of inventory will keep driving the prices up. If you want to invest in St Louis you need to be a pretty shrewd deal maker.
The Local Economy
For years St Louis saw little or no job growth and that kept the housing market from being the powerhouse that it is today. That has changed in recent years and the job growth situation is much brighter. If you take a look at the stats put out by Glassdoor, one of the world’s biggest recruiting sites, then you can see that St Louis hit #2 spot (second only to Pittsburgh) as one of the best cities in the country to look for a job. That in turn has fueled the city’s growth including the housing market.
What does all of that mean for a St Louis investor? It means you have to look very carefully to find a good deal, though there are still some to be had. Expect houses to sell above the asking prices and in some cases you may find yourself in the middle of a bidding war. If you are looking to liquidate your assets in St Louis you won’t find a better time to do so than now.