ST. LOUIS (KMOX) – The beat goes on for the local housing market.
Coming off a strong 2015, Coldwell Banker Gundaker President Jim Dohr says sales were up double-digits, and prices up 4 percent, in the traditionally slow months of January and February.
Dohr says rising employment and still-low interest rates get a lot of the credit.
“Everyone was expecting interest rates to increase this year,” Dohr says. “All the forecasters were suggesting that a 30-year fixed-rate loan would be as high as 4.5 percent by the end of this year. In fact, interest rates have declined this year.”
One concern, Dohr says, is the low supply of homes on the market. He says realtors like to have a seven-month supply of listings heading into the Spring. It’s been hovering around a six-year low of four-months for a while.
“We have a lot of people who would like to buy,” Dohr says, “But they can’t find anything in their price range or anything on their market that meets their satisfaction.”
A lot of homeowners, he says, are still waiting for prices to recover before putting a ‘for sale’ sign in their yard. Dohr says that could happen soon.
“If we have another year here of four or five percent appreciation I think we will be able to say at the end of the year we have finally recovered to the point where prices are up six or seven percent over what they were prior to the recession.” Dohr says.
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