July and August 2011 Market Update for St. Louis City, St. Louis County and St. Charles County

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Home Sales

Our home sales during July and August this year were up a sizable twenty percent this year as compared to the previous year – with 2800 homes sold in 2011.  Last year’s 2300 closings being that many less than this year’s despite the First-Time Homebuyer Credit available in 2010 indicates that our market is performing better than it seems.  Neither year compares well with 2009’s numbers that were at 3500 closings.

Home Prices

No news is good news and this summer’s numbers are just that – with only a slight decrease in home prices, we can rest assured that we are not experiencing any spectacular spikes but neither are we looking at any crazy dips at the same time.  The average home price dropped in 2011 to $192,000 from the previous year’s $194,000.  We can continue to expect to see a flat or declining trend on home values for at least the next 12 to 18 months or so.  Some markets may recover sooner however this area appears to be on track with most of the country.

Projected Sales

Considering that mortgage interest rates remain at all-time, historic lows across the country, we can expect to see better than average activity in the fall season.  If you are considering selling your home, keep in mind that with less inventory and more serious buyers on hand, the chances of your selling the home are fairly high.  Generally, buyers in the market during off-peak seasons tend to be in the market for unavoidable reasons such as job transfer or unforeseen circumstances.

Government-insured loan products continue to provide ample incentives for homebuyers to get in on the action, ranging from very low interest rates, assumable loans, closing cost concessions, renovation loans and more.
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If you are unsure whether or not to sell your home or if you would like to seize the opportunities that present themselves within the current lending market, visit your Realtor for a customized consultation to help decide what are the right steps for you to take according to your own situation and goals.  An in-depth analysis of your home, the neighborhood, values in your vicinity and more – may open the doors to possibilities you may not have realized are out there.  It doesn’t hurt to investigate the options!