ST. LOUIS – It could be an unseasonably warm winter housing market in St. Louis and some of the biggest cities in the U.S. The Zillow November Market Report shows home values in St. Louis raised slightly between October and November. That is also the case in most large markets, a sign that a more competitive market is in the cards this winter.
Home values were 19% higher nationwide in November than the previous year, a record high for any 12-month period this century. In St. Louis, home values increased 14.2% since November 2020.
“Homebuyers angling for a bargain this winter are finding the shelves nearly bare, as inventory has shrunk even faster than in a typical November,” says Zillow senior economist Jeff Tucker in a press release.
Tucker says buyers will find some silver linings to this cloudy winter market, like fewer bidding wars and the typical home lingering longer on the market before the seller accepts an offer.
The fastest monthly home value growth was seen in Nashville (2.6%), Orlando (2.4%) and Atlanta (2.3%); the slowest was in Milwaukee (0.3%), Pittsburgh (0.3%), Detroit (0.5%), Buffalo (0.5%) and Sacramento (0.5%). St. Louis saw a monthly home value growth of 0.7%.
Zillow experts also believe a dive in inventory is likely to ramp up competition and possibly push prices up even more in the coming months. Inventory fell from October in all large metros that made data available.
Nationwide there were 6.1% fewer for-sale listings between October and November. And when you compare it to the pre-pandemic housing market in November 2019, there are 37.8% fewer homes on the market.
While experts believe home values likely cannot keep growing at this pace, the market fundamentals that explain their climb show no signs of reversing.