Geeking Out
Sooooo….. in addition to being a Realtor, I’m also a CPA (used to work in accounting before I started to build my real estate business) and I LOVE numbers. Sorry, that’s a bit geeky, but it’s true.
I’ve had some folks ask for a market update, and of course I’m happy to oblige! So, welcome to my first market update! Buckle up, this market update is gonna be hot, much like the St. Louis real estate market!
St. Louis is Strong
The St. Louis market continues to be incredibly strong as housing inventory has hit record lows. Months of Inventory reported in April was 2.33 months. A balanced market is considered to be 6 months and anything below 6 is considered to be a seller’s market. (Check out my post explaining ‘Months of Inventory’)
Average sales price is up over 4% from last April, which is great news for those who want to sell their homes. It means they are more likely to have equity
Meanwhile, the stock market has hit record highs as well and unemployment is down.
Looking Forward
While things are looking good for the markets, there is an expectation that interest rates will rise this year. The low-interest rate party could only last so long. Unfortunately, as interest rates rise, the affordability of homes go down. If the Fed does indeed increase rates, we will likely see a slowdown in the real estate market.
But for now…the party still seems to be raging.
Thanks for reading. -Will