St. Louis Housing Market in 2024: Navigating the Shift
Jul 26, 2024
Photo from Zillow
Written David Dodge
St. Louis offers a distinct housing market experience compared to other Missouri cities. Renowned for its affordability and cultural attractions, it attracts homebuyers seeking a charming and budget-friendly place to live. But navigating this market requires understanding recent trends, like a slight dip in home prices and rising interest rates. This article explores everything you need to know about the St. Louis housing market, including current values, key trends, and valuable insights for buyers and sellers.
Current Market:
- Median Sales Price: Increased 6.7% to $304,000 (as of June 2024) according to data from the St. Louis REALTORS® association.
- Inventory: Remains relatively low, putting upward pressure on prices. Months supply of inventory has decreased for residential homes but increased by 49.0% for townhomes/condos. This means there's currently about a 2-month supply of homes for sale in St. Louis.
Market Predictions:
- A shift from a seller's market to a more balanced market is anticipated, with rising inventory due to rising mortgage rates. Buyers may have more breathing room in the coming months.
- Mortgage rates are a wild card - could cool down later in the year, reigniting buyer activity and further increasing inventory. Stay informed about these fluctuations and work with a qualified mortgage lender to understand how they might impact your purchasing power.
St. Louis' Enduring Strengths:
- Affordability: The average home value in St. Louis is $177,243, making it one of the most affordable cities in the US. This affordability remains a major draw for homebuyers.
- Diverse Housing Market: St. Louis offers a range of options to suit various lifestyles, from historic city neighborhoods to charming suburbs.
Strategic Maneuvers in a Balanced St. Louis Market:
With a more balanced market on the horizon, 2024 presents an opportunity for both buyers and sellers to be strategic. Here are some key considerations:
- Buyers: Carefully evaluate your budget and be prepared to act quickly on properties that meet your needs. Consider pre-approval for a mortgage.
- Sellers: Be realistic about pricing and leverage the expertise of a local realtor to effectively market your property.
Should You Invest in the St. Louis Real Estate Market?
St. Louis offers a promising location for real estate investment, with a growing economy, affordable housing, and an increasing population.
Overall, the St. Louis housing market is expected to remain stable in the coming months and years. While there may be some cooling off, St. Louis' enduring strengths suggest it will remain a desirable place to live and invest. The city's vibrant cultural scene and strong sense of community make it an attractive option for those seeking a place to call home.