New Study Ranks St. Louis As A Top Five Metro Area
for Projected Home Price Appreciation
The Demand Institute, a nonprofit think tank, which is run by Nielsen and the Conference Board just released their study and predictions for the U.S. housing market over the next five years.
The study states that it won’t be until 2018 for the median price of a single-family home will be near the peak reached in 2006, before the housing crisis began. However … some states and metropolitan areas will get there faster than others.
St. Louis Is In One of the Top Five Metro Areas Where Houses Are
Expected to Appreciate
The study showed that among the 50 largest metros where housing prices are expected to appreciate between 2012 and 2018, there are five top metros (Memphis, Tampa, Jacksonville, Milwaukee, and our own beloved St. Louis) that are projected to see price increases averaging 32 percent. The five metros projected to have the lowest price appreciation (Washington, D.C., Oklahoma City, Denver, Minneapolis, and Phoenix) will see gains of around 11 percent. The key factor in this study is the years 2012-2018. Bottom line is they’re talking about a six-year period which would make the annual appreciation at about 5 percent per year.
Good News or Bad News
If you already own a home this has to be some welcome news if the projections come to pass.
If you’re a buyer … maybe not as exciting because you”ll be looking at the price of a home gradually increasing in the years ahead.
If you are seriously considering buying a home why not now before the price goes up and interest rates increase?
Check out the chart below showing the impact of interest rates on your monthly payment. The chart shows what your monthly payment is likely to be in 2015 if interest rates do go up as projected.
Call Finding Homes for You today if you’d like to kick-start your home search at 636-532-4200.
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