The Local Market is Thriving!!!

From the Desk of Mike Weiss:

(314) 323-0198 – michael.weiss@upperendproperties.com

Despite what you have may have heard from some other agents, the real estate market in St. Louis is not dead – in fact, it is thriving!

I currently have multiple listings receiving tons of attention and several showings a week in what is supposed to be the slowest month of the year! I sold a home and got offers on another within the first week of being on the market in this month. I have worked other offers in the last month and picked up several buyers as well.

This heightened seasonal showing activity is occurring for a multitude of reasons. Most prominently is the fact that traditional St. Louis neighborhoods continue to draw successful young individuals looking to raise families or for a variety of other reasons. They stay or move to these neighborhoods for the schools, civic and architectural attractions, sports teams, distinct districts, parks, and the respective towns’ reputations of having relatively high standards of living. Why else would so many retired pro athletes end up staying here, the weather?

Aside from that, I believe this winter market is acting like mid spring for 3 main reasons:

1) The lending culture:

Rates are still historically low, under 5 percent (I just re-fied with a 5 year arm at 3.65 percent), however rates are hinting toward trending upwards this year and people will become more motivated when confronted with the prospect of missing out at this opportune time to buy. People who are looking to time the rates and the local market are going to make the jump. Also, lending restrictions have loosened, homes are being appraised, and the credit markets have stabilized. Generally speaking, the ability to get a variety of common loans (I recommend conventional, whenever possible) has become easier over the last year – enabling the flow of money into the housing sector.

2) Prices have stabilized and bottomed out.

This correction has helped people who are considering buying because prices are more affordable, while at the same time – rates are at an all-time low. You may not be able to afford as much of a house, perhaps, but the house you want does not cost as much, either. Your payment will be lower overall by hundreds of dollars a month if you move this year.

3) Demand will be up.

General pent-up and new demand should be exhibited this year as the job markets thaw and hiring begins. These changes will bring an influx of young professionals and out-of-town buyers. Locals who have been stuck on the sideline looking to take advantage of the market, as well as the always active first timers, empty nesters, and conservative and successful young families will all be looking to make their respective moves. It seems as though everyone has a reason to play in the real estate market right now.

Let me forewarn you: now is not the time to test the market if you are looking to make a score selling your home, but if you are looking to score that next 10 to 20 year property, this year will be as good of year as any in the next 5 to buy it. If my January serves as an indicator, 2011 promises to be good for selling homes in the nice sections of the metro area. The established desirable areas of this great city will continue to draw buyers from all sorts of places who will pay decent prices for good properties. It is imperative to be priced at the front of the class, however if you are: you ought to expect a relatively quick sale.