Market conditions in the St. Louis Metro area are good. Most people have heard of the real estate market “bubble” and in fact there daily reports about housing that is “overvalued” in many markets. There have been studies, surveys and articles running for about a year now about this “bubble” and while there may be some markets that will see a significant correction of the property values, that’s just what it is, a correction.
The St. Louis Market for the most part did not see huge property value increases therefore the correction in this market is minimal. The correction here is mainly the lack of value increases over last year. Supply and demand goes up and down in capitalism and therefore prices follow. On a small scale this is evident by two identical homes in different locations, or even on different lots in the same subdivision, selling for different prices.
In the St. Louis market the days of multiple offers are over for the most part. The average number of days on market for the first quarter of ’06 was reported to be 79. This is not a reason for worry. This is normal. The real estate industry and the general public got comfortable with the “hot” market of the past 6 years that anything less may be seen as a problem. The market is driven by people and people are still getting married, having babies, and yes unfortunately they are getting divorced and dying too. So property will continue to be listed, sold, and purchased and at historically low interest rates.
