Media outlets looking for stories usually visit this topic at this time. What will the housing market be in the NEW YEAR? Broker's and other experts weigh in and analyze trends, get out their wish lists and let it rip.
In everything I've read about natural disasters, climate, cost of living and the new tax plan, all I can say is St. Louis has it pretty good.
Predictions are out there claiming that due to the higher home prices of some markets:
- migration will increase to areas with more affordable homes and lower cost of living
- largest general buying group will be millenials
- looking for lower cost housing
- looking for urban, or semi- urban
- looking for lower taxes (despite having a state income tax, Missouri benefits from lower property tax rates than neighboring Illinois).
- Migration to areas with warmer climates
- Migration away from areas with high insurance costs and likely natural disaster areas
So as a rule, St. Louis seems to be in a favorable position into the future. Obviously there's work to do in Ole St. Lou, but looking closely at the continual efforts and momentum we have into developing St. Louis City, the fact that we still are a World Class City with increasing opportunity, and considering the largest sector of home buyers will be looking for a home type that we happen to have in greater abundance than most other cities, we're looking good.
Projects like Ballpark Village, Defense Mapping Agency, Choteau Greenway, and of course, the Gateway Arch Grounds are working to continue the face lift on our urban core, as we see positive results from Great Streets Initiatives throughout the City in places like South Grand and the Grove.
One economist predicted that home price appreciation and rising wages will be set to line up, meaning home price appreciation will slow to a 2-4% stable increase, while the historically low unemployment rates will fuel wage increases. This economist predicted that this convergence will add to home affordability and inrease home sales in 2018.
All in all, 2017 was a fantastic year in St. Louis real estate, besting an already great year of 2016 in sales volume with an increase of about 2% in units sold for the County and 4% increase in units sold in the City. Throughout the year, most professionals knew the market would be even better if inventory wasn't so low.
So here's to an AWESOME 2018. HAPPY NEW YEAR!