Multiple Listing Service statistical data reflect for the month of October year-over-year sales were up 6 percent, with total home sales in October 2017 of 1,558 compared to 1,475 in 2016. While the median sales price increased 7 percent from $160,000 in October 2016 to $171,000 this year, and days on the market dropped dramatically from 156 days to 96 days.
At the same time, October data reflect the continuing trend of a tightening market as active listings were down 3 percent to 6,855 compared to 7,101 for the same month last year, and housing inventory for St. Louis city and county combined stands at a 4.4-month supply, compared to a 4.8-month supply in October 2016. Economists cite a 6.5 months’ supply as the ideal balance between supply and demand. What do the October St. Louis Housing Report numbers say about the St. Louis market as a whole? St. Louis REALTORS® CEO John Gormley explains: “We are – and have been for some time – experiencing a tighter inventory in St. Louis, just like most cities across the country. The key difference for us is our housing affordability in all market segments. Even though it remains a seller’s market, we have a broad range of houses from which buyers can choose, and first-time buyers have opportunities to buy houses in St. Louis that just aren’t there for them right now in a number of other markets. Gormley adds: “In addition, a significant factor fueling opportunities for buyers – particularly in affordable markets like St. Louis – are low mortgage interest rates. Early this year, economists were predicting interest rates would increase dramatically – something which has not happened. In fact, recently mortgage interest rates dropped to 3.9 percent for a 30-year, fixed rate loan and to 3.24 for a 15-year loan – and that is definitely good news for all buyers.” Gormley concludes that there is much to be thankful for in St. Louis this year: “We do have the ‘it’ factor in St. Louis supported by our housing affordability, our exceptional job opportunities and quality of life.
Our excellent housing affordability is certainly helping us sustain a balance in our market and, in turn, is creating great opportunities for buyers to purchase houses in St Louis, make their homes here and live their lives. Bottom line: The American dream of homeownership remains a reality – one that is well within reach in St. Louis – and that is certainly something for which we can all be most thankful.”
