The biggest impact of low inventory in the marketplace is upward pressure on home prices.
The graphs on this page show the last ten years in St Louis City and St Louis County through December 31, 2012. The graphs pictured are: the number of new listings, number of solds and months of inventory. These numbers show that in St. Louis county the number of new listings in November dropped from 1211 to 895 in December. In 2012, the number of sales in November was 1,011 and dropped to 860 in December.
The months of inventory (absorption rate) for St Louis County dropped to 4 in June in the county but averaged 5.58 for the year which is considerably lower than 2011 at 7.08. The term Seller’s Market and Buyer’s Market is based on the months of inventory. The generally accepted barometer in the Real Estate Profession is: 0-4 months is a Seller’s Market; 5-7 months is a Balanced Market; 8+ is a Buyer’s Market. Comparing 2012 to the boom years puts a better perspective on today's market.
This information is obtained from MARIS and is deemed reliable but not guaranteed.
The St Louis Market overall is suffering from a slight drop in new inventory but not as significantly as the national average which was 4.4 months of inventory compared to our 5.58. A word of caution, these numbers vary from neighborhood to neighborhood. Some areas of our metropolitan area are "hot" and "needy" for some new listings. For a look at trends in your neighborhood go to my Market Insider webpage and enter your zip code. It’s interesting. You can also contact me to give you specific information for your area.
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