ST. LOUIS (KMOX) – The latest national housing numbers are out and while St. Louis home prices aren’t rising as quickly as the national trend, one local real estate expert says that’s a good thing.
Housing prices in the St. Louis area saw a double-digit increase in May.
“In the month of May, in the local multiple listing service, prices were up 11 percent, so that was a healthy increase for the month,” says Coldwell Banker Gundaker President Jim Dohr.
Nationally prices rose as much as 24 percent and cities like San Francisco saw a 24 percent increase and Phoenix a 21 percent increase.
Dohr says it’s good St. Louis isn’t seeing such a meteoric rise.
“Lawrence Yun, the chief economist for National Association of Realtors, has said just in the last couple of days that some of the increases, that they’re seeing across the country, are increasing at an unsustainable rate,” he says.
Dohr says the pace in St. Louis is healthy and that the biggest obstacle for buyers is still financing. Now that interest rates are beginning to rise again, he says affording a home could become more difficult.
He says in many local areas, the housing market is favoring sellers, because inventory is so low. Normally, inventory is at about a six-month level. Across the St. Louis metro area, it’s closer to four months.
Dohr says he expects inventory to begin rising soon, because interest rates on mortgage loans are also beginning to rise.
Year to date, prices are up nearly eight percent.