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.
- 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.
- 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.
- 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.