2014 State of the Market and 2015 Predictions
2014 was a good year for St Louis Metro area real estate. Median price was up 5.8% in St Louis County during Q2-2014 (which is always the most active quarter with the highest median price) over Q2-2013. St. Louis City saw an amazing 21.8% uptick in the same time period. St. Charles County enjoyed a gain of 3.5% in sales price during Q2.
Because of the downturn of 2008-2011, lenders weren’t lending so builders weren’t building and the choices were limited to resale homes, many of which didn’t sell due to negative equity. 2014 Existing Home Sales (resale) are still well below the numbers posted in 2005-2007 and New Construction Home Sales have just started their climb back up after being in the trough of 2012.
With new family formations increasing during the downturn, the demand for housing would eventually pick up, but the supply couldn’t keep up. 2014 saw many builders jump back into the market and as foreclosures and short sales dwindle, buyers are eager to find homes but disappointed with what’s available on the market in terms of resale homes. There is currently LESS THAN 6 months inventory in these 3 counties, which means we are back to a Seller’s Market in most areas. 6 months is a Balanced Market. Days on Market (the period from 1st day on market to pending offer) has decreased every year since 2011 to an average of 48 days in 2014. I anticipate multiple-offers for the best homes on the market this Spring. Do you know someone who’d like to be a seller with that “problem”?
2014 Market Summary
Median Sales Price from 2012 to 2014
St. Louis City, St. Charles County, St. Louis County
Single Family Homes only
We are still on the road to recovery according to the 2015 Housing Market Outlook nationwide. Investors played a big role in the housing market in 2014 and continue to do so as they drive the market recovery with buying distressed property, renovating it and placing it back on the market at much higher prices, which is helping drive prices up. 32% of the single family and condo sales of 2014 were by Investors. Conditions are pointing towards the trend continuing with increased mortgage rates, increased credit standards, increased home prices, greater rental options, higher student loan debt. On the flip side, the desire to own a home in the age group of 18-34 has decreased, partially because of high student loan debt and because they want to be freed to secure a job around the country or work remotely from anywhere and not be tied down to a home. With Millennial (ages 25-34) employment lagging behind, home ownership rates continue to fall to levels lower than in 2000. First time homebuyers (ages 18-34) are largely absent from the recovery with only 13% of that age group purchasing a home in 2014. Homeownership rates may continue to decline but as household formations increase, renting will be a very popular option. Home price appreciation will moderate significantly with growth being about 3-4% annually. The lack of distressed inventory will actually slow down price increases. We expect that most new home construction inventory will be at the high end of the market.
If you’d like a FREE Automated Market Evaluation of your home INSTANTLY and with no obligation, go to www.StLouisHomeReport.com and plug in your address. You will see a computer-generated value and the comparable sales around you. Let me know if you think it’s on target and if not, I’d be happy to run one using a more detailed method.
The Sandie Hea Team Community Moving Truck is available for your personal use as well as for your church, school, fundraiser, neighbor, family member, etc.
The highest compliment you can give me is to refer your friends, family members or co-workers who are interested in buying or selling a house (or rental property) this year. I look forward to helping the people who are most important to you.
I buy houses for cash, any condition, no inspections, no repairs, no commission!