Saint Louis housing market is rocketing despite a pandemic.
Saint Louis is getting more and more attention recently from Overseas investors, it is not surprising really as Missouri is one of the cheapest states in which to buy a house. According to a recent study by financial technology company SmartAsset who analyzed data for all 50 states and D.C. on metrics including median listing price and average closing costs Missouri came tops for value for money.
The St. Louis real estate housing market did experience many of the same setbacks onset by the COVID-19 pandemic as the rest of the US but real estate in St.Louis was very strong heading into 2020 before the pandemic arrived. It is now predicted that the St.Louis real estate market will come out even stronger once everyone has weathered this storm. Compared to single-family home sales for the same months in 2019, Metro East home sales in 2020 were down only by single-digit percentages — 3% from March 2019 to March 2020 and 6% from April 2019 to April 2020.
This is due to relatively strong unemployment numbers, historically low interest rates, and high demand for the St.Louis real estate, we may see St.Louis at the forefront of a national recovery. Overseas investors are now realising that if they position themselves well now, they could benefit in the long term when demand increases further and prices start to rise.
If we look at the Saint Louis housing market today we can see that the median home value stands at $131,350. The last 12 month appreciation rate for Saint Louis was 3.8% and taking into consideration a global pandemic it shows how strong the St.Louis housing market actually is. We also see that the rental market is still very strong, the median rent price stands at $1,100 with a Price-To-Rent Ratio of 9.95, one of the best in the US.
Building a rental property portfolio today makes more sense given the current market conditions in Saint Louis, the trends are in favour of the Overseas Investor, interest rates on traditional loans are historically low, strong cashflow from high rental demand and the strong price-to-rent ratio suggests home prices will further increase rental demand.
The Coronavirus has added to the low level of available inventory in Saint Louis and even those who are willing to buy are struggling to find the right property, therefore those who can not buy are forced to rent, investors are in line to benefit from even higher occupancy rates in the future. Some parts of the Metro East real estate market are so tight that homes go under contract in a matter of hours.
Fox News recently ran an article which summarises the Saint Louis market very well, they said the market is experiencing the “slingshot effect” They said the market slightly paused during the COVID shutdown and now it has rebounded at record levels. Real estate expert Kathy Helbig, Experience Realty Partners, says buyers are hitting the market in droves. Interest rates dropped during the shutdown and now they can afford to spend more on a house and they want to.
Global Investments are also experiencing the same low levels of inventory in St.Louis, all of our properties are normally sold within hours of been listed on our website but be assured we are doing our best to bring you the best priced properties when they do become available.
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