The shift in the St. Louis housing market has been fueled not only by real conditions of an economy heading into recession, but perceived conditions fed to consumers through media hype.

Real numbers do indicate home values have fallen by 8 to 15% during the past year. Although that can be problematic for individual cases, it is not an overwhelming loss of value. Most stock portfolios would be thrilled to be down only 15% in the past year.

However, the perception of a terrible real estate market can cause unreasonable conclusions. The truth is that current market conditions are poised for a faster than predicted recovery.

For Sellers, there are 30% less homes in the MLS inventory today than 6 months ago. The combination of less market competition and record low 30 year mortgage rates will create a great opportunity for the seller that does not wait for the traditional Spring market.

Buyers are recognizing that now is the time to act because serious sellers are willing to negotiate on both price and participate in paying part of the buyer's closing costs. In addition, the monthly payment for a $150,000 mortgage is down by about $100 a month.

Additionally, the impact of technology on the real estate marketplace has changed the way it operates. Today’s empowered buyers and sellers have masses of information easily available by simply going to the Internet. Real estate websites provide full listing inventories, blend mapping, property evaluations, school district profiles, and offer the ability to interact almost instantly with a real estate professional. Real estate companies nationwide have reacted to the technology trend by realigning their marketing strategies to embrace the shift from traditional print to online marketing. The current economic conditions also accelerate this change because the hefty price of placing a small, limited print advertisement no longer competes with the exposure gained from advertising listings online at multiple portals and websites.

The stars may be about to align for a recovery that comes sooner than most predicted. Educated consumers, advances in technology, ;ow interest rates, motivated sellers, pent-up buyer demand, and even lower gas prices will fuel the housing market. Because closings take place 30 to 60 days after buyers and sellers agree to terms, you can be sure that by the time the media reports a recovery, it is already well underway.

George Bruns, Chief Operating Officer
Prudential Select Properites