For the last few years, most of the news about the housing market has been about how prices are down.
Clearly, prices HAVE come down for most properties when you compare today’s value to prices at the peak of the housing boom (2005 or 2006 for most areas).
I was one of the people who bought a new home at the peak of the market (August 2005). If I needed to sell today, I would likely lose money.
But looking at any 3-4 year stretch doesn’t show you the full picture of what is happening in the market. Housing prices can go up & down in the short term (and 3-4 years is short term for the housing market), but most properties will appreciate over time.
Historically, the housing market has appreciated about 4% per year when you look at home prices over long periods of time.
Even with today’s down market, most St. Louis area homes that were bought 10 years ago will have appreciated since their purchase.
But, how much these homes have appreciated really varies depending on where they are located.
What is the Appreciation Rate of St. Louis Homes?
The St. Louis MLS system includes realtor-listed home sales since 1999. Granted, every property that sells is not listed in the MLS. However, by comparing the median sale price of MLS listed properties from year to year, we can get a good idea about how the market has been doing.
I’ve put together some charts to see how homes have been appreciating (or depreciating) in St. Louis City, St. Louis County and St. Charles County over the last 10 years.
As a comparison, I added a line that tracks how home values would have increased if they had simply appreciated 4% each year.
Increases in value can include both increases in the value of specific properties AND the impact of rehabbing older properties or new construction properties built in an older area. Decreases in median sale price includes both reductions in the value of specific properties AND a trend with buyers opting to choose less expensive condos.
Keep in mind that the value of any particular home will not necessarily mirror the trends noted below.
St. Louis City:
Average annual appreciation rate from 1999-2009 = 5.01%
St. Louis County:
Average annual appreciation rate from 1999-2009 = 1.45%
St. Charles County:
Average annual appreciation rate from 1999-2009 = 3.42%
Next Up…Part 2 – Appreciation rates of St. Louis area condos
PDF Possibly Related Posts:
- How Many St. Louis Homes Fail to Sell?
- What is the Appreciation Rate of St. Louis Condos?
- What is the Appreciation Rate of Lake St. Louis Waterfront Homes?
- What is the Appreciation Rate for Homes in St. Louis?
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