ST. LOUIS (KMOX) – Real estate experts in St. Louis say prices are on the rise and homes are spending fewer days on the market, but warns that mortgage interest rates are starting to rise again, making it difficult to get financing.
Coldwell Banker Gundaker President Jim Dohr says of the houses under contract right now, prices have shot up from a year ago.
“Prices over the last 90 days, when you compare those two prices in the same period a year-ago, are up between 9 and 10 percent,” Dohr says. “So, the recent trend is much more robust in price increase.”
Dohr says fewer houses are on the market from a year ago, but predicts that will turn around soon as prices continue to rise.
The difficulty in getting financing looks to be the only threat to the growth of the market, says Dohr.
“It really requires you, in order to be able to buy, to have a good credit score, you need to have an acceptable down payment and it’s still not the easiest thing to get a loan,” he says
Dohr also added that the historically low-interest rates are rising quickly.
“Just a few weeks ago they [interest rates] were around 3 and a half percent for a 30-year fixed rate mortgage, now they’re bumping up at 3.9 percent and heading toward 4 percent,” he says.
Dohr says the increase coupled with tight underwriting is “creating a bit of a challenge for some of the buyers in the market.”