The housing market in St. Louis, like many markets throughout the U.S., is feeling the pinch in housing affordability due to rising interest rates. While on the surface, that may seem like a negative thing, it’s a great opportunity for buyers and investors. When the demand for homes wanes, sellers are forced to reduce prices. This can make up for some of the differences in affordability when contrasted with lower interest rates and higher home prices in 2021.
St. Louis is a highly desirable place to live for so many reasons. The city is known as the bustling and renowned Gateway to the West, situated on the shores of the Mississippi River, and has outstanding amenities and culture.
More people in St. Louis are engaged in the tech and creative fields. This city successfully combines the new economy with formidable Fortune 500 companies. So, if you are considering moving, this post will give you some great info on the housing market in St Louis.
Navigating the Housing Market in St Louis
What to Look For
When the real estate market scuffles a little, buyers want to pay particular attention to a couple of obvious signs to get the best deal. One of those signs is how long the property has been on the market. The longer a house has been on the market, the better deal a buyer may be able to get. Of course, some sellers are just stubborn and want an unreasonable price no matter how the market is. But sellers get fatigued and want to get it done and get on their way.
“But It’s Not Perfect”
This is something agents hear all the time from their clients; however, if you’re looking for something in a specific area, it may have to make an offer on a home that isn’t “perfect.” No home is perfect, first of all, and second, homes that aren’t perfect can sit for an extended period. Offering less when there haven’t been any offers in a month or more may benefit you. That said, a little fix-up may be necessary to get it where you’d like it to be. This is the reality of today’s real estate market.
The Housing Market
A slight decrease in activity should send a sign that now is the time to buy. As such, investors should still be ready to move quickly if something comes up that is investment worthy. According to a story from KSDK News, now might be the best time to purchase a home in St. Louis.
Let’s be clear: All indications in the market are that it’s not “tanking” as it did from 2008 to 2012. This is a settling, a deep breath, and an opportunity to get a home at a lower price than you could’ve just a year ago. And even with higher interest rates it’s best to lock in now and then refinance later if rates drop.
Great Rental Market
A new study by WalletHub ranked St. Louis among the top 100 locations for renters. Real estate investors should consider St Louis a solid rental market. With job and population growth and a low inventory of homes for sale, what does come up and is turned into rental properties could net higher rents than in the last few years. Rent rates go up and down with the market. Crystal ball remains cloudy as to where they are settling.
Cost of Living
You can find good salaries, a high standard of living, and a reasonable cost of living in St. Louis. Compared to its neighboring cities, St. Louis has a lower cost of living than many other U.S. cities. Last year, Forbes listed St. Louis as one of the top cities for business and employment. St Louis’ high-tech employment in the metro area also grew by 2.2%.
In conclusion, now is a great time to get a better price on a home, condo, or loft than in the last couple of years. While most are sitting on the sidelines, savvy buyers are finding opportunities and finding a way to make it work. That’s the beauty of a slight pause in the market. Who knows how long it will last.
Louis Premier Lofts – Your Downtown St Louis Real Estate Resource
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