The St. Louis real estate market has demonstrated resilience in the face of the COVID-19 pandemic. While the initial impact of the virus led to a slowdown in activity, the market rebounded quickly and is now poised for a strong recovery in 2021. Factors such as low interest rates, relatively low unemployment rates, and pent-up demand have set the stage for a robust housing market in St. Louis.
St. Louis Real Estate Market 2021 Overview
- Median Home Value: $147,292
- 1-Year Appreciation Rate: 13.8%
- Median Rent Price: $1,100
- Unemployment Rate: 5.9%
Despite the challenging circumstances, the St. Louis real estate market has shown remarkable growth. The median home value has experienced consistent appreciation since 2014, making it an attractive option for investors. The low interest rates prevailing in the market have further incentivized buyers, enabling them to offset the higher acquisition costs associated with rising prices.
St. Louis Real Estate Investing: A Window of Opportunity
St. Louis is currently one of the hottest real estate markets, thanks to its unique combination of affordability, demand, and employment. Investors who position themselves strategically stand to benefit from the diverse investment opportunities available. While rehabbing has been a successful strategy in recent years, building a passive income portfolio through rental properties is now gaining traction.
Historically low interest rates and increasing rental demand make owning rental properties an attractive option. With the current interest rates at a record low, investors can take advantage of the reduced borrowing costs to expand their passive income portfolio. The price-to-rent ratio indicates that it is more affordable to buy than rent, further boosting rental demand.
With a promising 2021 real estate forecast, this is an opportune time to consider investing in St. Louis real estate. By leveraging the market conditions and understanding the evolving landscape, investors can position themselves for long-term success.
Impact of COVID-19 on the St. Louis Housing Market
The COVID-19 pandemic initially posed challenges to the St. Louis housing market, with a temporary halt in activity. However, the market quickly recovered, spurred by low interest rates and improving unemployment rates. The government's decision to keep interest rates low provided a catalyst for increased buyer confidence and market activity.
The St. Louis real estate market has seen strong demand with limited inventory, leading to price appreciation. As more people work from home, the trend of moving from cities to suburbs has gained traction. The suburbs offer more space and a safer environment, drawing people away from urban areas.
While the lack of available inventory remains an obstacle, the overall outlook for the St. Louis housing market remains positive. As the pandemic situation improves and new listings enter the market, a more balanced supply and demand dynamic is expected.
Foreclosure Statistics in St. Louis for 2021
St. Louis has a higher foreclosure rate compared to the national average. Approximately one in every 6,317 homes in St. Louis is distressed, reflecting a foreclosure rate of 1.5%. These distressed homes present potential investment opportunities, often acquired below market value.
While the local foreclosure rate has shown some improvement, the impact of the pandemic may lead to a rise in foreclosures in the coming months. Investors who position themselves wisely and secure financing have the potential to capitalize on these opportunities.
Median Home Prices in St. Louis for 2021
The median home value in St. Louis is $147,292, a testament to the city's consistent appreciation over the past six years. The combination of an improving national economy, positive sentiment, and limited housing inventory has contributed to this growth. The St. Louis housing market has outperformed the national average, making it an attractive investment destination.
St. Louis Real Estate Market: Summary of 2020
- Median Home Value: $131,350
- 1-Year Appreciation Rate: 3.8%
- Median Rent Price: $1,100
- Unemployment Rate: 11.2%
The St. Louis real estate market experienced a temporary setback in 2020 due to the pandemic. However, low interest rates and increasing buyer activity led to a resurgence, resulting in price appreciation. Investors adapted their strategies, shifting focus to long-term investments such as rental properties to capitalize on the market conditions.
St. Louis Real Estate Market: Summary of 2016
- Median Home Price: $170,300
- 1-Year Appreciation Rate: 4.1%
- 3-Year Appreciation Rate: 14.4%
- Unemployment Rate: 4.9%
The St. Louis real estate market in 2016 witnessed a rebound from the post-recession period, with improving home prices, affordability, and job growth. The city offered attractive opportunities for investors, promising positive price growth and potential returns.
St. Louis Real Estate Market: Summary of 2015
- Median Home Price: $149,900
- 1-Year Appreciation Rate: 4.9%
- Unemployment Rate: 7%
The St. Louis real estate market in 2015 experienced a significant appreciation rate over three years, pulling the market out of a period of post-recession weakness. The city boasted favorable affordability compared to the national average, making it an attractive destination for homeowners and renters.
In conclusion, the St. Louis real estate market presents a promising outlook for 2021. Despite the challenges posed by the pandemic, the market has shown resilience and continues to offer attractive investment opportunities. By staying informed and leveraging the market conditions, investors can make informed decisions and position themselves for success in the St. Louis real estate market.
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