The real estate market in St Louis continues to do well although the home sales trend, as our chart below illustrates, has flatlined over the past year. On our chart, we plot the home sales for the prior 12 months for each month thereby making it easier to see trends in the marketplace. As you can see, over the past 5 years, the trend line consistently increased from about this time 5 years until about a year ago where it leveled off. This is not surprising as it is not realistic for our market in St Louis to be able to support that growth rate indefinitely. St Louis has had very little population growth over the past several years, and everyone only moves so often, so there is only so much sales growth we can sustain.
St Louis Home Prices May Hit Resistance But So Far So Good..
There has been a lot of talk lately about a “price correction” coming in the housing market and I have discussed the possibility of it for the St Louis market as well. However, as the bottom chart shows, St Louis home prices during the past 5 years have been very consistent with an upward trend over time with the normal seasonal fluctuations along the way. Looking at the most recent couple of months as well as the past year as a whole doesn’t reveal any change in the trend at this point. Of course, this is something that can change quickly and I’ll be keeping an eye on it in the coming months but for now, things still look good for 2019 here in St Louis.
St Louis 5-County Core Market Home Sales Trend – Past 5 Years
St Louis 5-County Core Market Home Price Trend – Past 5 Years
