Is Real Estate headed for another bubble
St Louis County residential real estate statistics indicate that months of inventory in St Louis County stood at 4 in May of 2013. This stat is equivalent to the numbers STL County was experiencing during the peak of the bubble. In some price ranges the months of inventory is under 2 months. The statistics also show that the average sale price in the county is up 2.32%.
At the National Association of Real Estate Editors conference in Atlanta last week, Jed Kolko stated, “Right now we are not in bubble trouble, even though prices are rising as fast as we saw in last decade’s bubble,” Kolko said. Jed Kolko is the chief economist for Trulia. Trulia is an online residential real estate site for home buyers, sellers, renters and real estate professionals. In one of Kolko’s recent blogs he also stated: During last decade’s bubble, prices were as high as 39% overvalued in 2006 Q1, then during the bust, fell to 15% undervalued in 2011 Q4. Therefore, even with the recent price increases, home prices nationally remain undervalued relative to fundamentals and much lower than in the last bubble. That’s why today’s price gains are actually still a rebound, not a bubble.
Listed below are some St Louis County Real Estate Statistics showing the last 10 years through May 2013. This data was complied from Maris and should be considered accurate but not guaranteed. It’s a tell-tale comparison of average sale prices and months of inventory over the last 10 years.
Provided courtesy of Barbara Heise, RE/MAX Results
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