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St. Louis Home Prices Rising

May 09, 2018 - 7:33 am

ST. LOUIS (KMOX) - After hovering around three percent for most of the last couple of years, home prices in the St. Louis area have increased 6 1/2 percent so far in 2018. 

Coldwell Banker Gundaker President Jim Dohr says it's too early in the year to become concerned, but the numbers bear watching.

“We’ll see where we are mid-year, and if we level off at 5 or 6 percent then we’ll feel ok about that, but if for some reason inventories go lower, and the rate of increase on sale prices goes up to 10 percent or greater, then we’ll have more of an issue," he says.                                                       

Dohr says demand is still strong but the number of homes on the market is at record lows. He says in some cases those who are paying three percent interest on their mortgage don't want to pay the current 4 and three-quarters percent on a new place.