We have been reading and listening to national news media about the Real Estate bubble bursting. In addition, we hear, the housing market slump is having a negative effect on the economy and asking the question, "When will it end?". Just in case the national media hasn't heard, 2007 was the 5th best year in real estate since NAR has been keeping records and I might add, that is behind 2003, 2004, 2005 and 2006.
In doing a study about the real estate market in St. Charles County Missouri this is what I found out:
2007 end of the year statistics*
As we have all listened to the news reports and have bought into what they saying and made the remark that the market really is terrible. So that leads me to ask does it really apply to St. Charles County? In doing some research on the MLS this is what I have found:
- In comparing 2006 to 2007 home sales were down for the year 542 units (5258 in 2007 vs 5800 in 2006)
- Days on market were up 11 days for the year (80 in 2007 vs 69 in 2006)
- The average sale price was up $2,150 for the year ($214,483 in 2007 vs $212,333 in 2006)
So there is a softening in the market however, the sky is not falling. We, in the Midwest, are doing better than other markets across the United States.
If we look back just 5 years ago to 2002 and do a comparison to the market then this is what we find. Why are we looking at 2002? That was the last normal market that we had before the rising market that we have experienced thru early 2006.
- In comparing 2007 to 2002 I find that the home sales are up 1109 units (5258 in 2007 vs 4149 in 2002)
- Days on market are up 32 days (80 in 2007 vs 48 in 2002)
- The average sale price was up, $214,483 in 2007 vs $159,658 in 2002 (that's an increase of $54,825 in 5 years)
This information was taken from the St. Louis Multiple Listing Service. Some will say the figures don't lie but liars figure. With that being said what do facts have to say? We in the Midwest have enjoyed a steady growth and I believe it is due to our conservative roots. I do believe though that we need to remember that all real estate is local and even in down markets there are still pockets that are going strong. We have however moved back into a stable market. Some will say that it is a buyers market. Just remember even the stock market adjusts and at times more dramatic than we have experienced in real estate
Real estate is still a great long term investment!!
Don Rogers is a licensed REALTOR® in Missouri. I specialize in St. Charles County Missouri and have called O Fallon MO my home since 1993. If you are looking to buy or sell or you are relocating to the area and would like information about the St Charles County MO area do not hesitate to give me a call at 314-954-6775 or if you would prefer to send me an email.