2018 Real Estate Predictions

by Chuck Roper 8. January 2018 09:17

2017 was a positive year for our St. Louis real estate market and we are well positioned for continued prosperity in 2018.   Median sales prices rose +4.4% in the three primary counties we list and sell properties (St. Louis City, St. Louis County and St. Charles).  This compares favorably with +3.2% national price appreciation as reported by Realtor.com.  Residential home sales rose +1.9% in our area, compared with +2.5% growth nationally. 

 Looking ahead, Realtor.com published 3 Housing Trends which are relevant to our St. Louis market.

  1. Inventory is expected to increase - Low inventory has constrained sales growth in recent years.  Now, with high consumer confidence, solid home price appreciation and a vibrant economy, home owners are projected to get off the fence and sell.  This will increase sales in 2018.
  2. Price appreciation is expected to slow – Higher inventory will begin to normalize supply and demand, resulting in a more balanced seller – buyer relationship.  One caveat is entry level home prices, which Realtor.com predicts will continue to rise as demand will continue to outweigh supply.
  3. Millennials will gain market share in all home segments - Millennials are the largest population segment.  Realtor.com predicts Millennials may constitute 43% of all home buyers taking out mortgages in 2018.  This is a good sign for us; we need first time home buyers to spur home ownership rates and push sales up the pipeline.

To read the 2018 Realtor.com Housing Forecast, click here.





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