ST. LOUIS (KTVI) – When some people think about real estate hot spots in the United States, they think about places in Florida, California and New York. Realtor.com is throwing conventional wisdom out the window with its list of real estate’s hottest markets for 2016. The prediction is St. Louis will be number 2 in the country, behind Providence Rhode, Island.
The owners of St. Louis based Premier Realty Exclusive believe St. Louis is an undervalued market. They point to hi-tech job opportunities, the renovation of the Gateway Arch grounds and free cultural attractions as just some of the reasons to be bullish about the St. Louis real estate market in the future.
“Once people see what they can get here and what St. Louis has to offer, I think there’s definitely a motivation to move here and buy here,” said Chris Grus, co-owner and broker.
“We were excited about the report for St. Louis,” said Lisa Grus, co-owner and broker. “I think sometimes it is underestimated, and maybe this will put us on the map even more.”
The Grus point to affordability as another reason some buyers land in St. Louis. The St. Louis Association of Realtors agrees.
“Prices are creeping up and availability, inventory is headed downward,” said the association’s CEO, John Gormley.
He says prices are still affordable, especially when compared to other parts of the country.
“Certain parts of California, average sale price is going to be $400,000, even approaching half a million,” said Gormley. He says the average home sale price in the St. Louis market is near $236,000. “Although it’s on the move, it’s still it`s very affordable.”
He believes the diversity of housing inventory St. Louis has to offer is another strength.
“Whether you want the big house in the suburbs or you want something downtown, a high rise, or something in the middle, a condo, there’s lots of diversity,” said Gormley. “There are lots of different neighborhoods in St. Louis to choose from.”
Here’s the list of top 10 markets to watch, according to Realtor.com:
St. Louis, MO
San Diego, CA
New Orleans, LA
Virginia Beach, VA