“Housing is looking like the little engine that could,” according to Mike Castleman, founder and CEO of Metrostudy. Each quarter, Metrostudy sends 500 inspectors to 45,000 subdivisions to examine 5 million finished lots at a time. Metrostudy covers 19 states from Baltimore to Sacramento. The data the Metrostudy looks at is the number of homes in each city that are vacant and for sale as well as the number of months it takes to sell them. The data measures housing inventory, which is no where near what the inventory was mid-2006. If buying was the way it was in 2006, Castleman says that we would have an extreme shortage.
The low construction of new homes sounds bad, but it is actually a “huge help that a lot of people are ignoring,” says Karl Case co-founder of S&P/Case-Shiller Home Price indices. Low home construction and a steep decline in prices are the two factors that indicate that housing is back. Gradually, buyers will be drawn back into the market because of the new affordability of homes. As buyers return to the market, prices will rise with the increase in demand.
Greater St. Louis is just one of the many cities where it is now cheaper to buy a home than rent. Please give us a call if you would like to learn more about buying a home in the Metro East area.