A Daily Shot of News

St. Louis real estate markets continue to suffer as a result of the economic recession that began in 2008.  Residential and commercial real estate markets remain slow, suffering from levels below those seen in 2007 and early 2008.  Although most real estate experts don’t expect to see significant improvements and recovery in the St. Louis real estate markets till the end of 2010 or early 2011, many experts are optimistic that the recent improvements in the lower-end housing markets and the extension of the federal first-time home buyer’s tax credit will spur activity throughout the St. Louis real estate market and provide the momentum it needs to begin a full recovery and return to normal levels.

According to the St. Louis Today, many realtors have noted a slump in the activity in the apartment real estate market, despite the downturn in home sales.  Vacancy rates for apartments rose slightly by 1 percent during 2009, and building owners have reported seeing more renters doubling up, moving in with family, or leaving altogether.  Realtors have also noticed many condominiums being converted to rental units, a practice which is expected to continue well into 2010.  However, St. Louis’s apartment real estate market did fare better than most other markets in the nation, posting a slight increase in average rent from $715 to $769 between October of 2008 and 2009, and only a slight increase in occupancy rates from 86.2 percent to 87.3 percent.  Nevertheless, many landlords and apartment managers are taking extra measures to keep tenants through the use of “resident satisfaction” programs while keeping maintenance and other costs low.

Despite recent struggles in the St. Louis real estate market, many real estate experts believe that the federal tax credit could be an influential factor in giving the St. Louis real estate market the momentum it needs to improve and move a step closer to recovery.  In the last weeks of November, realtors posted slight increases in home sales, attributed primarily to the expected deadline for the federal homebuyer’s tax credit.  However, since the tax credit was extended to for several more months, real estate experts are hopeful that it will continue to spur real estate activity.  Experts have also noted that affordable housing and low interest rates should also serve as major incentives to prospective buyers.