ST. LOUIS (KMOX)-It’s not only causing trees to bloom already, but the Spring-like weather in the St. Louis area is also helping heat-up the local housing market.
“With the weather being so mild this year,” says Coldwell Banker Gundaker President Jim Dohr, “we really got an early start on the Spring market.”
Dohr says that so far this year, closings are up over five percent over the first two months of 2016, and homes are selling at least ten percent faster.
“That’s really a function of the tight supply of listing inventory that we have in the market,” he says. “That’s been a trend that we’ve seen now for about a year-and-a-half.”
That supply, according to Dohr, is at an 11-year low.
Despite that, prices are only up 2 1/2 percent. Dohr says that’s due to the area’s ‘stable’ economy. “In the markets where prices are shooting up very high across the country, you have pretty large population growth, which translates to large job growth in many cases. When that’s happening, that demand with low inventory translates into a big escalation in prices.”
Dohr points to a recent report published by HSH.COM, that determined that a person in St. Louis could afford a medium-priced home on an annual salary of $38,000. They would need to make $73,000 to afford the same home in Denver, $56,000 in Dallas.
Looking ahead into Spring, Dohr’s expecting more of the same. “We’re not expecting a red hot market,” he says. “We’re pleased about the trend and we think that’s good for both buyers and sellers.”