Living in – or even nearby – a large city isn’t for everyone. But for many people, St. Louis hits the sweet spot between big city life and the more relaxed pace suburban and rural living. Throughout 2018, it seemed that more and more people were discovering our hidden gem in the midwest. As the best title company in St. Louis, Investors Title gets to enjoy an insider’s experience of our region’s growth.
As the new year begins, we thought we’d take a look back at some key statistics in the St. Louis real estate market and think about what buyers, sellers and agents might want to expect in 2019.
St. Louis Real Estate Market 2018 Overview
Let’s start with the basics. In 2018, the St. Louis metro area was home to about 2.8 million people and ranked as the 21st largest metro in the entire country. While the population of our region hasn’t expanded rapidly, it has seen relatively steady growth since 2010. With big plans underway for improvements to St. Louis – from tourist attractions like a world-class aquarium, the new Arch grounds and the beginnings of a massive modern food hall, to about $6 billion worth of renovation happening in St. Louis between midtown and downtown – the city is increasing its appeal.
In 2018, St. Louis was even recognized by national media outlets like CNN, who wrote that “St. Louis has quietly evolved into one of the high-tech hubs of the Midwest.” In their own study, ZipRecruiter listed St. Louis as one of the top three cities for recent graduates thanks to a ready supply of jobs, short commutes and affordable housing.
Good press is always nice, but now let’s look at some stats:
- The median home value in St. Louis is $147,662.
- On average, homes spend 45 days or less on the market.
- Home values have risen 4.7% over the course of 2018.
- St. Louis’s appreciation rate through 2018 was about 4.33%, staying at or above the national average (per NeighborhoodScout’s data).
Although our growth tends to be slower than the national average, growth is still growth, and St. Louis has been enjoying it steadily.
St. Louis Real Estate Market Predictions for 2019
It’s true that the St. Louis real estate market is more affordable than many other major metro areas. But limited inventory and increasing demand as more people move to the Gateway City has already led to a general upward trend in prices, particularly in the city’s more popular neighborhoods. Little Big Homes’ forecasting stated that “If this Housing Market Forecast is correct, home prices will be higher in the 1st Quarter of 2019 than they were in the 1st Quarter of 2018.”
It’s a trend that’s expected to carry through 2019. Zillow predicts that St. Louis home values will rise 8.8% over the course of the next year.
Over the past 3 years, properties appreciated on average 26%. These rising values don’t necessarily mean that the St. Louis market is “hot”. In reality, the market is considered balanced; it favors neither buyers nor sellers, but offers benefits to both. Many sellers can sell their homes relatively quickly, and tend to sell at about asking price.
Meanwhile, buyers can still invest in a comparatively inexpensive market and see the value of their home increase reasonably over time without worrying that a bubble is about to burst. According to RealWealth Network, “…for investors looking to buy income property in a stable, steadily growing market (with promising signs of future growth), St. Louis is an area to consider.”
From a national perspective, housing is predicted to slow down by about 2% in 2019, according to Forbes. But, as they explain, this is not necessarily a bad thing. With slower appreciation in prices, incomes can catch up. And with slower sales, inventory can normalize. All this means a healthier housing market going forward.
All in all, the future of the housing market in St. Louis looks bright. For Investors Title Company specifically, 2018 was a great year that kept us busy providing commercial title services, residential title insurance and closing services and more to fantastic clients all over the St. Louis region – and 2019 is set to be the same. As the new year begins, we want to thank all our clients and our amazing team for another year of success. We look forward to many more!
Looking for the best title insurance and closing services in St. Louis for 2019? Get in touch with the experts at Investors Title Company today!