It doesn’t take a rocket scientist to know that home prices typically rise in the spring as the St Louis real estate market heats up however, it is more of a challenge to find those areas that may out perform the others. So, which St Louis neighborhoods are poised for a strong spring housing market?
As I wrote about earlier this week, a recovery of the St Louis real estate market is underway, however, some areas will fare better than others of course. For some home buyers the “investment” aspect of their next home is secondary as the school district, location to work or something else will take precedent, but for those home buyers that are more flexible, as well as investors, the promise of better than average home price appreciation may drive their next home purchase.
In doing research for this article, I looked at several different types of current market data for St Louis neighborhoods including home prices, inventory, home sales and then looked at current and historical trends. In the end I came up with the following St Louis neighborhoods that I think are poised for a strong spring market:
St Louis Neighborhoods Where a Strong Spring Real Estate Market is Expected (click city name for complete market data):
- Ballwin 63011 – Inventory is down to a 6+ year low, days on market are down to a 5 year low, home prices (price per foot) are up about 10% from their post-bubble low in January 2012 but has been relative flat in the past year and for the past two years the number of listings being absorbed (leaving the market through sale, expiration, etc) has exceeded the number of new listings, keeping supply down.
- Chesterfield 63017 – Inventory is down to a 6+ year low, days on market are at a 5 year low, home prices (price per foot) are up about 14% from their post bubble low but are still down over 6% from their post-bubble peak in late 2008 and early 2009 and for the bulk of the last 4 or 5 years the number of absorbed listings has been about the same or higher than the number of new listings.
Are these the only two areas that are going to have a strong spring market? Of course not, but these are the two that stood out to me and I like the looks of the most. If you have a question about other areas, or a specific area, contact me and I’ll be happy to give you my thoughts.