Home sales for St. Louis were up for 2013, but have since leveled off over the last few months.
There are many factors affecting the number of homes that are being sold, including a significant drop in the number of first time home buyers to the market.Professionals are predicting that 2014 will not see any drastic changes in the St. Louis housing market as there are major positives, like a growing job market taking place in the area, being thwarted by the fear of raising interest rates.
A Growing Job Market
The St. Louis job market is looking good for 2014 and beyond, partially thanks to the Swiss-based company, IKEA, choosing all local contractors to build their new superstore in downtown St. Louis. The highly popular retail store is expected to break ground in just a few months and plans on being ready to open by the fall of 2015. That opening will lead to hundreds of new jobs available to St. Louis residents.
A rising job market is great news for the real estate industry, which should see benefits as St. Louis residents gain more personal financial security. Unfortunately, they are still fearful of the rising interest rates which are expected to continue to go up into the new year. Now would be the right time to lock in at a rate before interest rates continue this upward trend.
A Decrease In New Housing Construction
Another factor being cited as the reason for a lagging home sales market is a decrease in new housing construction. Smaller construction companies are being held back by difficulties in securing loans, meaning contractors are not able to break ground on new homes. With any luck the credit will begin to flow again, adding new jobs to the St. Louis area as well as new homes. Once there is an increase in economic activity, there will naturally be an increase in home sales.
An Increase in Property Values
The rate of home sales is of special interest to those St. Louis home owners who are still strapped with a mortgage that is greater than the value of their home. Once St. Louis residents feel the financial security of steady jobs and begin to invade the home buyers market, those property values should increase, allowing home owners to take advantage of low interest rates now to refinance high interest loans before they hit their expected peak at the end of the year.
As of right now, the market remains stagnant as St. Louis residents wait for new jobs to arrive and mortgage interest rates to drop. Unfortunately, what they do not realize is that right now they are probably at the lowest they will be for the rest of this year.
If you are considering a new home purchase for 2014, now is the best time to lock in on an interest rate. Call Better Rate Mortgage at (314) 361-9979. With guaranteed financing given before you find a home, like the Better Rate Mortgage TBA home mortgage program, you can get a good mortgage rate now, and take your time finding the right house to fit your budget.
Photo credit: Ron Reiring via Flickr