Home sellers in the St. Louis area should act early in 2014 to beat the "Spring Market", and maximize their selling price, according to an industry analysis by The Gellman Team.
Home sellers in the St. Louis area should act early in 2014 to beat the "Spring Market", and maximize their selling price, according to an industry analysis by The Gellman Team. "A combination of factors will affect the 2014 St. Louis real estate market," explains co-founder Mark Gellman. "Overall, there is good news for both home buyers and sellers, and we should see a more balanced supply and demand."
Changes to mortgage lending will contribute to the increased cost of buying a home. Mortgage interest rates are projected to rise as Federal monetary policy begins to shift. "Mortgage rates will top 5 percent during 2014," expects Neil Gellman, co-founder of The Gellman Team. "However, rates will remain historically low, but any uptick in rates will affect buying power."
Neil Gellman adds that changes in lending practices will eventually make mortgages easier to obtain. "Moreover, lenders will simplify underwriting standards for traditional mortgages, and remove the over-correction in practices that made home financing difficult. The counterpoint is that creative mortgages will become hard to find, and lender fees may increase."
For St. Louis home sellers, 2014 will bring an improvement in home values of 3 to 5 percent. "The climb in home prices will continue, while distressed inventory falls," asserts Mark Gellman. "But the pace of price increases will be slower than the prior year. As homeowners recover equity, more homes are listed on the market, which improves supply and reduces price pressure. This helps create a healthy, balanced market with opportunity for both home sellers and home buyers."
Home demand in St. Louis is expected to grow as the local economy strengthens. "We have good reason for optimism," says Neil Gellman. "The renovation of St. Louis Union Station, and the expansion of Ballpark Village, speaks for the high level of commercial investment in St. Louis. In Chesterfield Valley we have significant retail development with two new outlet malls. Meanwhile, employers like Monsanto and Reinsurance Group of America are adding hundreds of jobs to the area. Lastly, St. Louis has become a fertile ground for life sciences and technology companies."
The upshot of all these trends? "2014 will be a good year for St. Louis real estate," says Mark Gellman. "We're excited for the future."
The Gellman Team at Coldwell Banker Premier Group provides real estate services to home buyers and sellers throughout St. Louis and the surrounding area. They stand among the top 10 teams for all Coldwell Banker affiliates in North America, and are ranked #1 in greater St. Louis out of approximately 9,000 agents. For more information about The Gellman Team, visit their website at www.thegellmanteam.com or call #314-578-1123.