Mark's Market Update: 2019 Summary and Projections for 2020!

Welcome to another edition of Mark's Market Update!

How did my projections end up for 2019 and what are they for 2020?

2019 Summary

Prices: Higher overall percentage increase than expected. Although variances by area and price point widely fluctuated.

Sales: Fewer sales than expected due to lower inventory levels. Weakness in inventory continued throughout the year.

New construction: Many new construction developments throughout St. Louis, but not enough to offset low inventory levels due to a softness of existing homes for sale.

Interest rates: Great for buyers, remained at historical lows, although we did see a mid-year bump over 4% and settled under 4% by year end.

Multi-family: Multi-family investment prices continue to skyrocket, while rents have not kept up.

2020 Predictions

Prices: We will continue to see a rise in prices, in specific areas and price points (to be detailed in next week's Mark's Market Update). However, overall price increases percentages will be less than in 2019.

Sales: Strong year for residential sellers will continue, as there will continue to be a weakness in inventory, consistent with 2019.

New construction: Homes will continue to show strength in St. Charles, and Jefferson County, putting downward pressure on prices in competing resales.

Interest rates: Interest rates will continue to be at historical lows, although I would expect "bump ups" from today's rates and most likely see low 4%s

Multi-family: Multi-family investment prices continue to rise, although at a tad slower pace Softness in commercial retail properties will continue, as brick and mortar retailers continue to see softness in sales.

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Cheers to a great 2020!

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