I just read a report from Jay Thompson at The Phoenix Real Estate Guy that highlighted the PMI Summer 2008 report on the housing market. In contrast to Phoenix which has a 79.6% chance for lower prices in 2 years (according to PMI), the report claims that St. Louis has only a 1% chance of lower prices.
That doesn’t actually sound like a bad housing market.
The other numbers for St. Louis include:
- Decreasing risk for downward prices - our 1% rate was down from 1.8% for lower prices when measured in the fourth quarter of 2007
- Low price volatility at only 2.9% - lower volatility means more stable prices
- Homes are appreciating – even though the 1.7% annual appreciation rate sounds really low, home prices are increasing (in comparison to many other areas that still have declining prices)
- Homes are 10% more affordable than they were in 1995 – the affordability index is based upon per capita income, interest rates and appreciation rates
PMI report shows the top 15 markets at risk for lower prices in 2 years are all in California and Florida, plus Las Vegas and the Phoenix area. With over 50% of the top 50 markets (27 to be exact) having less than a 10% chance of having lower prices in 2 years, it’s time that buyers in St. Louis start buying again.According to this report, homes in St. Louis are starting to appreciate. If you want to buy while the market is at or near the bottom, you better hurry up and get moving or you’ll look back and find that you missed it.
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Possibly Related Posts:
- St. Louis Housing Market ~ How Much Did Sellers Reduce their Price to Sell? (Part 5)
- St. Louis Housing Report ~ 2010 Homes Sales by Price Range (Part 3)
- St. Louis Region Housing Market Report – 2009 Home Sales
- PMI Report – St. Louis Market Update
