Local Real Estate Market Mirrors Weather: HOT

Brian Kelly @brpkelly

ST. LOUIS (KMOX) – The latest reading of the local real estate market is much like those of the last 18 months — it’s hot.

In fact, Coldwell Banker Gundaker President Jim Dohr says, the supply of homes on the market is hovering around a record low two months. “That’s unprecedented in our marketplace,” Dohr says. Six months is considered healthy.

Dohr says St. Louis City and County are straddling the two-month supply level, but it’s under that in St. Charles County. In some areas, way under, “At certain price points and in certain subdivisions, you’re talking weeks of inventory if not days of inventory.”

Dohr says while in some major markets the tight supply is leading to up to ten percent price increases, prices are only up three percent here so far this year. “Even in multiple contract situations, often the prices are being offered that are above the listing price but in many cases they’re not going way over the list prices. They’re remainig fairly conservative.”

One reason the market is so tight, Dohr says, is people are still recovering from the housing bubble burst. “Unfortunately, the St. Louis metro area still ranks in the top ten in the nation for those homeowners who either have very low equity or negative equity. It’s a declining figure but it still is a factor.”

Dohr doesn’t expect much to change in the months ahead.

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