According to Forbes Magazine financially St Louis ranked number 3 of the 40 largest metropolitan areas based on appreciation, rental levels and vacancy rates.

Here are the top ten.
1. Houston
2. Austin, Texas
3. St. Louis
4. Philadelphia
5. San Antonio, Texas
6. Dallas
7. Charlotte, N.C.
8. San Francisco
9. Jacksonville, Fla.
10. Atlanta

Forbes magazine Maurna Desmond article

If you are in the market or considering a purchasing your first home you should consider the economic factors and market conditions.  Forecasters are telling us that mortgage rates will continue to fall slightly before stabilizing.  We hear regularly that the housing market is at or near the bottom and a turn around is likely to begin later this year. I think most would agree that housing values are depressed.  As mortgage rates fall you are able to acquire a mortgage at a very affordable rate. 

That means you have a perhaps once in a lifetime (certainly a once in a long-time) opportunity to buy a home at a discount and finance that home at an extremely low interest rate.  It’s known as Buying Power and today’s first time buyers have it.

Savvy buyers and investors are taking advantage of this buying opportunity.  We are already seeing multiple offers on properties that are priced well or below the market.  Take for example a property that sold for 168,000 just 2 years ago.  It was recently listed at $137,500 by the lender that foreclosed on the property.  There were competing offers.  The property needed clean-up and painting totaling approximately $3,500.  That’s a $27,000 discount from the market high of 2 years ago (more if you don’t mind painting).  Factor a low interest rate on the mortgage and there is additional savings.  If you have seen an increase in your earnings in the past 2 years you can factor that in the equation as well.  Keep in mind that this is just one example and not the normal discount you should expect in the Metro St. Louis market but I used this one to illustrate the opportunities that are available.

The truth about whether a home is a good investment.

Overnight Real Estate Rates Sink Further Inman News

Latest Housing Forecast from National Association of REALTORS

Housing Market Ready to Rebound?

Search the Metro St. Louis MLS database.  Tip: look for properties with reduced prices.

Do I qualify for a mortgage given the tightening guidelines?

The American Society of Interior Designers Foundation and the U.S. Green Building Council launched the nation’s first green residential remodeling guidelines.

The REGREEN Guidelines provide resources and tools to make home remodeling projects more environmentally friendly and energy efficient. The guidelines are organized into the 10 most common remodeling projects.
“Consumers overwhelmingly want greener homes, and the REGREEN Guidelines will help by showing them how,” Michelle Moore, senior vice president of the U.S. Green Building Council, said in a public statement. “The REGREEN Guidelines empower people with practical information about how to green projects ranging from kitchen and bath renovations to deep energy upgrades.”

The REGREEN guidelines include the major elements of any green renovation project, such as the site of the home, water efficiency, materials and resources, and indoor environmental quality.

“You can start greening your home without spending a lot of money just by getting informed,” Moore said. “Weatherization projects can save energy and lower your utility bills, which also reduce your Carbon footprint. Similarly, choosing low-VOC paints, flooring, and adhesives eliminates bad-smelling toxins and creates a healthier home.”

To access the guidelines visit www.regreenprogram.org or www.thegreenhomeguide.org.

— REALTOR magazine online and American Society of Interior Designers

THE NATIONAL ASSOCIATION OF REALTORS’® Chief Economist Lawrence Yun has been named among the top 10 economic forecasters by USA Today. Yun is ranked fifth on the list and is responsible for NAR’s real estate statistics and economic forecasting. The annual list recognizes accuracy in forecasting.

“NAR is proud of USA Today’s recognition of Lawrence Yun and his economic forecast accuracy. He is a highly regarded economist, and the housing and real estate industry have come to rely heavily on his economic analyses,” says Dale Stinton, NAR executive vice president and chief executive officer. “This acknowledgement contributes greatly to NAR’s reputation as the leading innovator in housing-related research.”

Yun was named NAR’s chief economist and senior vice president of research in November 2007. He has been with the association since 2000, previously serving as vice president and senior economist. He pioneered the development of the Commercial Leading Index after helping develop the residential Pending Home Sales Index.

“I’m honored to be recognized among some of the best economists in the country,” says Yun. “The economy and housing industry are facing many challenging issues at this time, which makes this an interesting and stimulating position.”

USA Today enlisted the help of the Federal Reserve Bank of Atlanta to determine the most accurate forecasters among the economists surveyed in the newspaper’s quarterly survey on the U.S. economy.

The economists, whose identities were unknown to those gathering the data, received four scores — one for each quarterly survey — and were ranked on the average of those four scores. FRBA used statistical methods to assess the joint accuracy of the predictions rather than assessing the accuracy of each forecast variable separately, as is commonly done.

Before joining NAR, Yun worked as an economic consultant to the U.S. Department of Veterans Affairs and the U.S. Department of Education. As a research associate at the University of Maryland, Yun developed the graduate economics curriculum for and taught free-market economics in the former Soviet Union as that country transitioned from communism to a free-market system.

Yun received his Ph.D. in economics from the University of Maryland in 1995. He received a B.S. degree in mechanical engineering from Purdue University in 1987.

— REALTOR® magazine online

Daily Real Estate News  |  March 17, 2008
In an effort to boost market liquidity, the Federal Reserve lowered the discount rate to 3.25 percent from 3.5 percent and launched a new lending program through which money will be moved from securities dealers to the securitization markets.

The effort — the latest attempt to stabilize prices of bonds backed by residential loans as delinquencies continue to escalate and home prices tumble — will provide financing for JPMorgan Chase & Co.’s acquisition of Bear Stearns Cos. for approximately $270 million, or about $2 per share.

Meanwhile, the central bank could reduce the interest rate affecting consumers and businesses to 2 percent at its March 18 meeting, marking a decline of a full percentage point.

Source: Dallas Morning News (03/17/08)