Real Estate Values In St. Louis....where do YOU think they are going? (St. Charles: mortgage)

[Bobster]

If you've been watching the news lately you've probably seen all the stories about the crises in the housing and credit markets and about how home prices are starting to decline.

I can tell you from personal experience that home prices here in St. Louis have indeed gone down. A house that I fixed up and sold for $178,000 out in Barnhart, but that the deal died because the lady lost her job, sold for a bit over $160,000 after an additional 8 months on the market. Looks like about a 10% adjustment to me!

Anyway, we went ahead and bought a different house in order to be closer to my girlfriend's work in spite of all of the negative news about housing values. We figured that St. Louis has a pretty diverse economic base and that the problems in the credit markets would either be fixed or would work themselves out within the next few years and since we planned on staying here for at least 5 to 10 years, that we would be ok.

I will point out that I'm a bit prejudiced due to the fact that I own a real estate and mortgage company, but I was actually more curious what you folks take on housing values in St. Louis?

Is now a good time to buy on the dip? Do you think that we're in for a long nightmare? Do you think that they're going to be stagnant?

Let me know.

[aragx6]

Our home prices never skyrocketed the way they did on the coasts or in Arizona etc. so I doubt we'll see as strong of a correction as they have.

I also don't think that every market in St. Louis has been affected to the same degree. I have a close friend who lives in Des Peres and house on her block stay on the market for less than a week before selling, even now.

My mom lives just off the new page extension in St. Peters and her home has consistently gone up in value every year and this year has been no different.

That being said- my opinion (which is really only that) is that we'll see a lot of houses come on the market in spring, most of them overpriced and few of them will sell.

But I do think that by Spring '09 things will be back on the up and up and appreciation will continue. That's not to say people are going to make 10% on their house a year anymore- that bubble has surely burst- but we should get back to the 2-4% appreciation of yesteryear soon enough.

[Danilo-11]

I'm one of the few people that is celebrating everytime there's talk about mortgage crisis and that the housing market is bad.
Because my lease end in December and I should be buying my 1st house at the end of they year.

So, this housing slump better keep on going down or I'm going to be pissed

BTW, I'm interested in St. Peters and St. Charles.

[Brickmama]

Havent heard of much trouble downtown. I actually saw on the news that since they closed I64 sales have increased.

[Bobster]

aragx6....thanks for the input. I think that you may be pretty close to being right on. I guess that we'll see.

Danilo11, I think that you're looking at this 100% the right way. In the stock market they call it, "buying on the dip".

Brickmama: I had trouble getting a loft to sell for what the guy had paid for it 3 years earlier. I think that they are selling down there, but there is a LOT of inventory! Thanks foryour input!

[Brickmama]

Yes there is a lot of inventory. Hopefully the market can recover over the summer and reduce the number on the market. Once the new construction lofts/condo's sell then I think we will start to see the resales start to appreciate more. Lower the supply and increase demand.

[Bobster]

Brickmama: I think that you're right on this one. There are only so many buildings down there that they can rehab...I'm excited for the area...I used to live in the AD Brown building...I do however think that the city got a bit ahead of itself with all of the development going on at once.

[Brickmama]

Thats a very nice bldg. Jusy out of curiosity. Do you recall how long ago you sold the loft you were previously speaking of? What bldg?

I also foresee the demand increasing once more baby boomers start to downsize.

[aragx6]

Originally Posted by Brickmama

I also foresee the demand increasing once more baby boomers start to downsize.

I hope this is true and I've heard a few of those empty-nest type looking in the city, but I think there's often a lot of stigma attached to the city for the 50s and up crowd who grew up in the metro when St. Louis was a much different place. The city will have to work hard to convince that age group that St. Louis is a place people actually choose to live.

[STLCardsBlues1989]

St. Louis needs to clean up its reputation. I think it's started, but it needs to continue.

I think once people see how affordable it is here while still maintaining the conveniences and charm of city life, they'll start to move.

Hopefully younger people will move here and eventually start their families here (although young singles are an important part of city-life as well).