Mar 26, 2017
Figures show that the Gateway City’s housing market may be finding stable footing in the improving economy though indicators remain below their pre-recession highs.
According to the St. Louis Business Journal, permits for new homes have surged back to statures not seen since 2007 with about 8,000 private building permits issued last year yet it is just over half of the 15,000 number from the market’s crest in 2004.
Still, the 2.9 permits per thousand residents represents a vast improvement over the nadir of the housing implosion. During the dark days of 2011, builders were only churning out about 1.7 permits per thousand.
Bill Emmons, assistant vice president of the Federal Reserve Bank of St. Louis called the numbers “a new and sustainable normal.”
St. Louis prices remain a bit more anemic than the country as a whole though the city continues to be a paradise from an affordability perspective. First-time homebuyers seem to be in good stead and inventory is moving quickly with some houses in the mid-county area finding new owners within a day or two of listing.
Potential risk factors worrying the market include the possibility of recession, rising interest rates or possible Congressional alterations to the formula for deducting mortgage interest which could slacken demand for homes.
The numbers cover 11 counties across the metropolitan area.