Mogul Realty’s 2015 Real Estate Market Forecast for St. Louis
2014 was an interesting year for real estate in St. Louis driven partially by changing social standards.
The year started off with volatile prices, but by spring and summer the market calmed and turned into a seller’s market with prices creeping upward.
In August we saw an unexpected volatility come right back due to uncertainty over the events in Ferguson. As similar news stories followed and protests grew city-wide, out-of-town investors hesitated to continue looking at St. Louis properties and local investors were staying put, waiting for the dust to settle.
After August both real estate investment and retail housing continued to slow.
As we move into 2015 the questions that dominated local news have been answered and many communities are focusing on supporting each other in inspiring ways.
However protests and riots historically do affect real estate values and tend to influence them for decades. For that reason I expect that 2015 will continue to have a volatile market as the city deals with current events, both economically and as a community.
Market Trends
Beyond the social issues that have troubled St. Louis, the real estate market here, just like everywhere in the United States, tends to follow a pattern connected to the school year. As spring and summer approach more people consider moving and the market turns into a seller’s market with generally higher prices as people hope to move before the next school year begins.
The start of the school year makes fall and winter a buyer’s market as people generally don’t want to move their kids during the school year.
Even with the seasonal volatility I don’t expect many extreme price fluctuations, but I do predict prices will increase due to low interest rates.
As we start 2015, the early winter will be a great time to look for a rehab project to get ready for the spring selling season. I especially love days with fresh snow when I’m out looking at potential properties; if there are no other foot tracks leading to the front door then I know I’m probably the first to look at it.
That said, even if winter gives you hints there’s never a bad time to buy, history tells us to be careful and remember there are seasons for buying and others for selling.
Next up in our real estate series: What You Must Do Before Buying Property.