The collapse of the housing market is hurting real estate sales in Missouri, where housing prices are sliding, but not as much as other areas of the country that have suffered harder impacts. However, it's projected that things are going to get much worse as a decaying job market impacts the state.
Foreclosures are already climbing in most of Missouri, and as more than 3-million adjustable rate Alt "A" mortgages readjust in 2009 nationally, the large majority is projected to go into foreclosure. Many are in Missouri.
The economy has stalled new projects and triggered the cancellation of others in the St. Louis area. A declining local economy and more expected job losses are hurting the economy. Home sales are off and are expected to remain sluggish through 2009. St. Louis boomed during the real estate frenzy with the construction of new projects and plenty of new homes in the area only to slow in the fall out of the credit crisis. Housing Predictor forecasts St. Louis home values will deflate 11.4% during the year.
In Kansas City , Missouri foreclosures are leaving a mass of vacant houses abandoned inviting drug addicts and vandalism. Neighboring homeowners are unable to determine who the real owners of many homes are since the mortgages have been bought and sold so many times on Wall Street that public records are often not updated accurately or in a timely fashion.
 |
| City |
Forecast |
| St. Louis |
− 11.4% |
| Kansas City |
− 13.2% |
| Springfield |
− 12.9% |
| Columbia |
− 10.9% |
The blight of foreclosed properties pains homeowners in Kansas City, which in some neighborhoods is turning into a hub of foreclosures that line nearly every street in the community. More than half of all homes sold in Kansas City are now foreclosures, many of which are sold at bargain prices. Sales are projected to remain slow through 2009 on increasing forecast deflation of 13.2% for the year.
Far away from Kansas City, the tranquil community of Springfield is having its own problems in the housing mess. Foreclosures are rising and home sales are dropping. The foreclosure up tick is projected to increase through the year in Springfield as many homeowners with higher mortgage payments are unable to afford their homes and abandon properties. Springfield is forecast to sustain 12.9% in housing value deflation in 2009.
As the credit crunch and falling home prices trigger an increasing lack of consumer confidence, many homeowners in Columbia are trying to refinance their homes and learning that falling home values are stopping them. Slightly more than 40% of all homeowners are underwater on their mortgages, owing more than what they could sell their property for these days.
In Columbia, tight credit markets and higher loan qualification standards are making it tough for those who need to refinance. As a result, a glut of homes sits on the market for sale. The lack of home sales is hurting the marketplace, which will experience a slow year in 2009. Columbia is forecast to see average home values decline at 10.9% through year's end.
