Missouri, known as The Show Me State, became a state in 1821; it was the 24th state to join the United States. The state has historical significance as the original starting point for the Pony Express, the Santa Fe Trail, and the Oregon Trail. Bordered on the east by the Mississippi River, it is the 21st largest state at 69,704 square miles. Population wise, Missouri is 18th overall with 6,083,672 residents. Projections estimate that the population will reach 6.8 million by the year 2030. The current unemployment rate is 5.1 percent, but the state has been predicted to see an expected job increase of 8.61 percent. The top employer in the state is John Deere Farm Equipment with almost 20,000 employees. So, how will these economic factors affect the overall Missouri real estate market? Find out in our report.
Compare And Contrast This Report to our 2015 Missouri Real Estate Market Predictions
The 2016 Housing Market in Missouri is considered less healthy, only receiving a 2.7 rating out of a possible 10 points from Zillow. The real estate market for the state has median a list price of $128,000 and a median closing price of $180,000. Housing market predictions expect a 4.3 percent rate of growth in the market and home values should see an appreciation rate of 1.49 percent. It is estimated that there are over 4000 rental homes available throughout the state with a median price just over $1000 per month.
If you’re looking for property on the St Louis real estate market, you must check out this Federal style mansion
Influencing Factors for the 2016 Missouri Real Estate Market
- The median home value of a house in the Missouri real estate market, according to the Zillow Home Value index is $135,200. This is a 4.9 percent increase over 2015, and the increase is predicted to continue at approximately 3.2 percent through 2017.
- As of August 2016, the foreclosure rate is 2 percent higher than July 2016 and 25 percent lower than the same time in 2015.
- Missouri’s median rental price is $1070 per month. This price is 1 percent higher than the preceding year, 2015.
- The APR for a mortgage in the Missouri real estate market commonly falls within the range of 3.26 percent to 3.35 percent, currently 3.33 percent. The average rate is 3.35 percent which is on target with the national average of 3.31 percent.
Best Places to Live in Missouri
St. Louis is and independent city and the second largest in the state of Missouri with 315,685 residents. It is the home of one of the most famous American landmarks, the Gateway Arch. The economy is based on the following industries: service, manufacturing, trade, transportation of goods, and tourism. The city and the metropolitan area are home to various Fortune 500 companies including but not limited to Anheuser-Busch, Express Scripts, Boeing Air Defense, Energizer, Panera, Post Foods, Enterprise, Monsanto, Scottrade, Edward Jones, and Purina. With the presence of Washington University School of Medicine, the has become known for medicine and biotechnology as well as pharmaceuticals and research. The top employers in St. Louis are BJC Health Care, Wal-Mart Stores, Inc. (both over 20,000 employees), Boeing Defense, Space and Security, followed closely by Washington University (each with approximately 15,000 employees).
The St. Louis real estate market is healthy with a score from Zillow of 7.2 out of 10. Zillow St. Louis places the current home value at $108,800, a 12 percent increase over last year and is expected to continue increasing over the next year at a rate of 4.5 percent. As far as list prices are concerned, the average is $194,873 and the median is $155,000. The median closing price is $165,000. The current number of homes in some stage of foreclosure is 2826 as of August 2016, 4 percent lower than July 2016 and 9 percent lower than August 2015. According to data from Trulia St. Louis, 60 percent of residents own their homes, 41 percent are single and the median age is 38 years. Actually listings cover a broad range: a two bedroom home can sell for less than $15,000 while a four to seven bedroom home can easily sell for $4 to $5 million. In addition to the 5844 properties for sale, another 901 are available to rent. The median rent is $900; Zillow’s rent index is $947 which is 3 percent higher than 2015. Craigslist St. Louis has listings for rental units ranging from mobile homes for $300 per month to large homes with three to four bedrooms in excess of $5000 per month. Trulia’s listing includes 1 and 2 bedroom units starting around $400 per month up to five bedroom houses for $8000 per month.
The largest city in Missouri and the 6th largest in the Midwest is Kansas City. The largest employer in the city is the federal government with 146 offices and agencies represented. The Internal Revenue Service and the Social Security Administration are only two from the list. The Kansas City real estate market is neutral but stable with a score of 4.5 out of 10 from Zillow. Of the 459,787 residents, over half own their homes (59 percent), 40 percent are single, and the median age is 36 years. The current home value is $111,000 which is 5.9 percent higher than last year and expected to continue increasing at 3.9 percent. As of August 2016, 1395 properties were listed in some stage of foreclosure, a number that his 2 percent higher than July 2016 but 35 percent lower than the same time in 2015. The median list price is $142,000 while the average list price is $175,853. There are 3186 homes for sale according to Realtor.com. Prices vary from under $15,000 for smaller homes with one to three bedrooms to five bedroom homes for $3 to $4 million. Realtor.com also has 438 listings for homes for rent. Rental prices begin around $400 for a one bedroom studio or apartment and go up to $3000 to $4000 for anywhere from two to six bedrooms. The median rent is $925 per month. Zillow’s rent index is $1033which reflects an increase of 6 percent over 2015.
Jefferson City is the state capital and the 15th most populous city with 43,183 residents. Thirty-two percent of residents are single and at a median age of 39 years. The state itself is the top employer. In 2016, Jefferson City was named the 4th Best Small City to Start a Business and 2nd in the state (behind Columbia) and 13th in the country for Best Cities for Career Opportunities. The Jefferson City real estate market’s current home value is $144,900, 4 percent higher than last year. There are approximately 447 properties for sale at a median list price of $100,000, the average listing is $142,709. Typical listings on popular real estate sites list two or three bedroom homes beginning at $40,000 and four and five bedroom homes for over $500,000. Seventy-two percent of residents own their homes, 10 are currently in some stage of foreclosure. There are an additional 24 properties available to rent. The median rental price is $850; Zillow’s rent index is $870 (a 27 percent increase over previous numbers). A one bedroom apartment can be found for less than $400 while a three bedroom starts at just under $1000 and goes up from there.
The 4th largest city, with a population of 119,108, is Columbia. Forty-two percent of residents are single and the median age is 32. As previously mentioned, it is the number one Best Small City to Start a Business. It is home to the University of Missouri (also the top employer), Stevens College, and Columbia College. The Columbia MO real estate market is stable with a rating of 5 out of 10 from Zillow. Currently, the home value is $153,900, 3.4 percent higher than last year and expected to continue increasing at 2.6 percent. The median listing price is $160,000 but the average listing price is quite a bit higher at $220,529; the median closing price is $131,000. Of the 1127 homes listed for sale prices range for a 2 bedroom home for just over $30,000 to four to six bedrooms for over $1 million. Fifty-four percent of residents own their homes, but there are another 313 properties listed for rent. The median rent is $1132. Zillow’s rent index is $1196, 2 percent higher than in 2015. One or two bedroom units start around $300 (just under $400) and go up to the vicinity of $3000 for a four to six bedroom rental house. In August 2016, there were 81 properties listed at some stage of foreclosure. This number is 61 percent lower than the previous month and 68 percent lower than the previous year.
Branson is a smaller city with only 11,064 residents. Of those residents, 68 percent own higher than previous cities listed at 42 years. It is best known as a tourist destination, primarily due to the long list of entertainment theaters. The Branson real estate market has a current home value of $144,700 which is down 3 percent from 2015. The median listing price is $90,000 and the median closing price is $98,000 while the average listing price is $174,578. Only 4 homes were listed in foreclosure as of August 2016, 43 percent lower than July 2016 but 33 percent higher than 2015. About 1024 homes are listed for sale. A one bedroom home starts around $35,000 and a four or five bedroom home might sell for $1 to $1.5 million. The median rental price is $1200. Of the 46 rental units available (according to Realtor.com) prices can be expected to be around $400 for a studio, $500 for a one or two bedroom, and $2000 and up for units with three to five bedrooms.
Read About Neighboring Competitors to the Missouri Real Estate Market Here:
- 2016 Iowa Real Estate Market Predictions
- 2016 Illinois Real Estate Market Predictions
- 2016 Arkansas Real Estate Market Predictions
- 2016 Kansas Real Estate Market Predictions