December 2009 St Louis Home Stats

It’s been a very interesting year in real estate for the St Louis area. Prices have declined in almost all cities in the St Louis Metro area, but not nearly as much as in other markets.  Banks have been slow to bring foreclosure inventory onto the market.  They are trying to work out loans with borrowers, and have strategies to keep a shadow inventory of homes and release them slowly.  That along with the first time homebuyer tax credit really helped to prop up prices in what might have otherwise been a much worse year.  With the new first time buyer tax credit along with the moveup buyer credit that went into effect recently should have a similar effect on real estate in St Louis in 2010.

The really interesting aspect that we’ve found this year is the lack of inventory.  There were much fewer properly priced homes on the market this year.  As many buyers found out, these homes moved quickly.  We’ve heard plenty of reports about homes having 3 or more offers on them.  We expect this to change next year.  Individuals looking to move up will make decisions with the new tax credit that they didn’t make this  year while waiting for the market to pan out.  This also means that there should be a high turnover of property in the coming year.  However, we don’t feel that high turnover will mean higher prices.  We feel that even though a tax credit is in place, the foreclosures that will seep onto the market will keep prices fairly stagnant.

Some areas have actually seen an increase in the past 12 months.

Homes in St Charles 63304 – Over the past 12 months prices have risen from about $252,000 to $264,000.
Homes in Crestwood 63126 – While only a minimal increase, the price still went up since January 1, 2009.
Homes in Creve Coeur 63146 – Homes started the year at an average of about $210,000 and are now at $220,000.

St Ann Sees Price Bounce May 2009

 
Due to a very steep 35% decline in the number of homes for sale, St Ann, MO looks to have found a temporary pricing bottom. The city went from a high of over 100 homes actively for sale in July 2009 to just 72 at the time of this article’s publishing.  After reviewing data it appears as if the liquidation of a large list of foreclosures, which generally bring prices down in an area, is coming to an end.  The median price for the city was around $105,000 in July, 2008 and at it’s bottom in April, 2009 came in at just $95,000.  As of May 18, 2009 that figure had jumped to almost $99,000, a fast 4% increase.

However, we do not expect this to continue.  Due to the large nationwide lenders holding a 3 month foreclosure moratorium that should end in the next 4 weeks, St Ann might be susceptible to additional price declines.  

Spotlight On: Saint Charles’ Noah’s Ark Redevelopment

Now Called:
The Streets Of St. Charles

Cullinan Properties, based in Peoria, IL is the developer of a large scale redevelopment project on the South East corner of Highway 70 and Fifth Street in St. Charles.  Many will know this site to be the former location of the Noah’s Ark restaurant and a large hotel that used to be on the site.  

The property had been a sore spot in the eyes of many St. Charles county residents for a long time as the hotel and restaurant had fallen into disrepair and were a visual strain when entering the county over the Blanchette Bridge.  

In the early 2000s, a project was hatched to redevelop the ground including some surrounding homes and a gas station into a large format, high-end retail, office, and residential center.  This project was originally known as “The Plaza at Noah’s Ark.”

In 2007, the restaurant was torn down soon followed by the hotel to make way for the new construction.  

One major feature of the proposed project was the Show-Me Aquatics center.  The center was to feature a set of pools and would feature aquatic therapy for adults.  That project has now been moved to be included with the new St. Charles Freedom Center on the site of the old K-Mart near Highway 70 and First Capitol.  More can be found about Show-Me Aquatics here. 

Originally, The Streets of St. Charles, as the project is now called, was to feature an 18 story office and residential tower, outdoor ice-skating rink, numerous high end restaurants, and an outdoor mall.  While the lagging economy has drastically changed the plans for this development, construction still continues.  A site plan of the current proposed project can be found here.  As you’ll notice there is a big empty location for “Future Development.”  Hopefully this location will see the return of the mixed-use tower.  It would provide excellent views of both the river and the surrounding area.  Currently excavation is complete and awaiting warmer temperatures to pour the foundations. 

While Cullinan’s website states a proposed opening date of Mid-2010 , it’s more likely that this will be delayed or worked into numerous phases.  A high end center was completed in the Lake St. Louis area in 2008 and attempted to feature higher end retailers.  While the economy has made it difficult for them to find tenants, they do have some big name stores including Ann Taylor and Bed, Bath, and Beyond.  More can be found about the center here.

As more higher end properties are built in St. Charles county it should only further the growth of this county.