Missouri

It’s been a bumpy ride in Missouri real estate for sometime as home sales decline and housing values deflate. The credit crunch has slammed a lid on the state’s housing market to the point where very few homes are selling.

Increasing foreclosures are taking a bite out of the market in St. Louis, which recorded a history breaking boom when the market was flying. New condos and hotels were built in the city’s downtown after years of a slowing economy, but those days are a distant memory. Home prices in many neighborhoods are falling nearly as fast as they went up.

Since Missouri experienced explosive growth during the real estate boom it’s suffering from fallout as a result of the credit crunch that is making many wonder whether the entire state is already in a full blown recession. Jobs have been cut in construction and all sorts of other industries like banking tied to the boom.

St. Louis isn’t the only place hurting in Missouri. Home sales will be soft through the end of the year in St. Louis, according to the Housing Predictor forecast on deflation averaging 8.6%.

City	Forecast
St. Louis	− 8.6%
Kansas City	− 7.9%
Springfield	− 6.3%
Columbia	− 7.5%

Kansas City is suffering from economic pain related to the housing crisis. Foreclosures are increasing, and those homes that are selling are selling for a lot less than at the markets height, some times as much as 40 to 50 percent less. Many homes have been abandoned and left vacant.

The over abundance of homes listed for sale are pressuring the markets pricing, and Kansas City, which had gained so many new homes as a result of the boom is now actually beginning to lose many residents. The Housing Predictor forecast for Kansas City, Missouri for the year is for 7.9% in deflation.

Springfield has been selected as a top place to live by numerous publications time and time again, and has one of the lowest crime rates in the nation. There’s not much going on in Springfield real estate these days though. The credit crunch has nearly halted home sales, which are forecast to slow further through the year on 6.3% depreciation.

In Columbia it’s a similar story as the credit crunch makes mortgages harder and harder to get for many potential homeowners, and even tougher for those who need to refinance to retain their homes with falling prices. Excessive mortgage lending and adjustable rate mortgages that were conventional products are having a devastating effect on the Columbia real estate market, forecast to deflate 7.5% for the year.