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.