St. Louis Among Top Cities for Real Estate Investment

March 23, 2012

St. Louis Among Top Cities for Real Estate Investment

By Evan Binns
ST. LOUIS BUSINESS JOURNAL

St. Louis ranks No. 10 among the top residential real estate investment markets, according to a report from Realtor.com.

According to the report released March 19, the local market is outpacing the national average in terms of the length of time a home is on the market, moving 11.21 percent faster at an average of at 103 days.

While prices are still falling in the St. Louis market, with a median list price of $159,000, and demand is still in the recovery phase, St. Louis didn't lose as much value and fared batter than most larger markets during the housing bust, according to the report. The rental market is also softer than the national average, with unit inventory declining by almost 17 percent compared to a year ago.

Given the relatively stable housing market and employment here, St. Louis was the 21st most searched market on Realtor.com last month, the report said. The area's stability is due in part to its service, manufacturing, trade, transportation and tourism industries, as well as being home to several major corporations such as Express Scripts, Enterprise Rent-A-Car, Graybar Electric and Scottrade, to name a few.

For long-term investors looking for bargains in a conservative market that will realize annual appreciation as the market improves, this is the time and place to buy, Realtor.com said. As we enter the 2012 home-buying season, real estate investors are expected to play a critical role in maintaining demand, according to the research firm.

While St. Louis was ranked No. 10 on the list of best real estate investment cities, Kansas City was ranked No. 3. Kansas City home prices fell 8.4 percent from their peak in 2007 , but now they are starting to recover as low unemployment (7.3 percent) stimulates demand, according to the report. Kansas City was 55th most searched market on Realtor.com last month.

Tucson, Ariz. topped the list of investment markets.

The selection of top 10 markets for investors is based on Realtor.com February 2012 data, including list prices and inventory trends, which provide investors with a current picture of marketplace trends in 146 markets nationwide.