Housing market still hot even as inventory issues ease

The last year has seen the price of homes in St. Louis rise dramatically. Fueled by low interest rates and the economic fall out of COVID, few people have been putting their homes on the market. The resulting low inventory caused a major supply-demand imbalance. But the most recent data from June shows that things are starting to cool down locally as well.

The most recent data from St. Louis REALTORS shows that the inventory of homes for sale in St. Louis rose slightly in June, 2021 to 2,576. This is the fourth consecutive month of growth in inventory, since it hit a low of 2,072 in February, 2021. While inventory is still down 29.8% year over year, this is still suggestive of a broader cooling of the red hot market we’ve seen over the last year.

The month’s supply of inventory is also creeping back up. In June there was a month’s supply of 1.4, the highest recorded since December, 2020. It should be stressed that this is still significantly below the historical average.

There was also a spike in new home listings. There were 2,709 new listings in June, an increase of 10% year over year. It is in fact the most active month in terms of new listings in the past year. Taken together, these statistics show that the region’s supply-demand balance is mollifying. Certainly the sense that the economy and the situation with COVID are returning to normal is making homeowners more confident to take the step of putting their home on the market.

It should be added that despite these signs suggesting a leveling off of demand, the market still has some heat in it. The average number of days a home stayed on the market dropped to a staggering 20 days in June, half of what it was a year ago. Both the median and average sales prices also rose to $271,330 and $341,006 respectively.

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