2017 St. Louis Real Estate Forecast
The St. Louis housing market experienced a ton of growth in 2016 with the number of homes sold up almost 33% compared to last year.
But one question remains: will the city enter 2017 with enough momentum to continue this trend? If you are planning to buy or sell a home soon, here’s what you need to know about the state of the St. Louis housing market in the coming year.
Continued growth expected
The overall outlook for St. Louis is positive. Hailed as one of the most affordable home buying markets in America, even recent news about rising federal interest rates won’t do much to dampen home sales here.
In fact, even in the face of higher interest rates, real estate experts still think that the real shortage will be sellers, not buyers. If you’re on the fence about selling, you shouldn’t worry that you missed your chance if you wait until 2017 to put your home on the market.
Stable Home Prices
One unique fact about the St. Louis housing market is that while home sales have gone up, home prices have remained relatively stable. Typically, a market with a high number of sales is also very competitive for buyers. When there’s competition among buyers, prices tend to rise as a result. The local housing market may be hot, but home prices have remained lukewarm.
While this news isn’t great for sellers, it is good for buyers. More buyers mean that homes actually sell instead of languishing on the market, so consider this a win-win overall. Plus, skyrocketing home prices were one of the precursors to the housing bubble in 2008. The stable home prices in St. Louis are a good indicator that we aren’t headed for another crash locally.
Most home buyers will be millennials
Experts are predicting that over half of all home sold in 2017 will be purchased by first-time buyers. What does this mean for sellers? Having come of age during the recession, many millennials are concerned with making sound financial investments. Additionally, they’ll be looking for homes that provide more privacy and space.
Demand for move-in ready homes increases
While most areas will be seeing growth across the board, interest in buying distressed houses remains low. Buyers may love a bargain, but most aren’t looking to make their first home a fixer-upper. If your home needs major repairs and updates, you may want to seek out alternatives to putting the home on the market.
Start by getting a cash quote for your home from We Buy Ugly Houses St. Louis. We purchase homes as-is, so you don’t have to worry about any repairs.
Have any other tips about the 2017 real estate market? Share them in the comments below!