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High Interest Rates Slow St. Louis Housing Market

August 29, 2018 - 7:45 am

ST. LOUIS (KMOX) - After a long run of positive numbers, home sales in the St. Louis area have declined slightly through the first 7 1/2 months of the year.  

They're down .5 percent so far in 2018 compared to last year while prices are up 5.4 percent.  Coldwell Banker Gundaker President Jim Dohr says demand is there, but many homeowners, especially those who bought or refinanced when interest rates were especially low, don't want to sell and buy a new home at a higher rate.

“That’s a big difference is somebody goes out and finds a home and gives up an interests rate below 3 percent and then acquires a new mortgage at over 4 percent, so a lot of people are just sitting still, staying put, if you will,” he says.

Dohr says the lowest inventory is for homes under a half-million dollars, while there are plenty of homes on the market for over a million.