Supply and demand is king these days, especially when it comes to real estate. Home sellers’ success relies on an ever-shifting and fragile web of factors, and even residents of a perfectly nice area, complete with white picket fences, are not guaranteed a smooth ride. Real-estate market movement is largely determined by the financing available—and since the federal housing tax credit expired this spring, activity has nose-dived. We talked to Kevin Cottrell, chief economist and co-founder of the Kelsey Cottrell Realty Group, to get an inside look at the three best and worst areas in St. Louis to try to sell a home—at least as of press time.
On the Up and Up
Crestwood
Whether it’s the town’s low median home prices, placement in the Lindbergh School District, or general reputation for being sweetly middle-class, buyers are biting. Those looking to sell their homes in Crestwood face good prospects, says Mr. Cottrell.
The housing market for this community in southwest St. Louis County has remained stable, with low rates of both foreclosures and short sales. Although prices have also been relatively flat, they are starting to increase. “If the demand trends continue, expect prices to keep marching upward,” notes one Kelsey Cottrell report. Another positive indicator in Crestwood is decreasing days spent on the market, and as demand exceeds the available supply of homes there, the market for sellers will likely continue to improve.
Glendale
For homeowners looking to put their houses on the market, Glendale is one of those areas where the grass really is greener. The market there has been stable recently, and is healthier than in other areas of St. Louis, says Mr. Cottrell. This exclusively residential area of St. Louis boasts, among other things, old country homes, some dating back as far as the early pioneer farming days, plus the historic Algonquin Golf Club, both attractive features to potential buyers.
An indication of the area’s market stability is its quick absorption of listings for sale, on average, with a median list price of $309,900, a low rate of foreclosures (5.5 percent), and the number of sales outpacing new listings, according to a Kelsey Cottrell report.
Frontenac
With an average household income of almost $120,000, a low per capita crime rate, a trio of prestigious private schools, upscale shopping, and 1-acre lots, it’s no wonder that West County’s Frontenac community is becoming a hot spot for buyers.
Like other areas with strong seller’s markets, Frontenac rarely has foreclosures, and the supply of homes on the market is tightening as buyer demand increases. A smaller inventory of homes with a median list price of $839,000 and decreasing average days spent on the market make this upscale St. Louis area a seller’s dream. And it will probably just keep getting better: As the market continues to improve, we “are likely to see upward pressure on pricing,” says a Kelsey Cottrell report.
On the Downside
Hazelwood
Hazelwood is not the place to be if you’re looking to sell your home, according to the Cottrell report The tax credit contributed dramatically to home sales in this area, and since the credit expired April 30, the drop-off in activity has been significant. High rates of foreclosure and short sales, on top of a large inventory relative to demand and falling prices, are other indicators of a weak seller’s market in this community.
Located in northwestern St. Louis County, Hazelwood boasts almost 30,000 residents, more than 1,000 businesses, and multiple state-of-the-art facilities, and has long been a popular place to raise a family. But high unemployment and a crime rate higher than the national average in recent years may have dissuaded a number of would-be new home buyers.
Wentzville
In 2008, BusinessWeek named Wentzville Missouri’s housing boomtown. Cottrell says the Wentzville market took off when more affordable housing became available there and buyers grew willing to accept a longer commute.
Since then, however, things haven’t been so sunny for sellers in this west St. Charles County community. Demand failed to keep up with the initial boom, and today Wentzville’s market has a bloated inventory. Sellers are stuck in limbo in an area that is suffering from a lack of price stability, an average time on the market of nearly 6 months, and a large number of foreclosures and short sales. This negative trend may well continue: “If inventory continues to grow relative to demand,” says a Kelsey Cottrell report, “it is likely that we will see downward pressure on pricing.”
Eureka
Eureka’s name doesn’t quite live up to its present reality for sellers. Like Wentzville, Eureka experienced a boom when affordable housing became available there, and people became increasingly willing to commute into the city. Although the area features such attractions as Babler Memorial State Park and Six Flags St. Louis, it’s buyer’s choice in today’s roller-coaster real-estate world.
Since the area’s initial boom, the housing market has adjusted, and now sellers are left to cope with a surplus of inventory and high rates of foreclosure and short sales. “The market has settled in at a relative stasis in inventory and sales condition,” says a Kelsey Cottrell report. With average time on market surpassing 6 months there, too, patience is key for Eureka sellers looking to move on.
