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The numbers for St. Louis home sales for September have been released. The numbers show that the real estate market in St. Louis is down, but not dismal. September is the first month this year where the average price of homes sold has been lower than the same month in 2006. This is a 3% decrease in price. Also, the number of homes sold has decreased from 1568 last September to 1339 this September. This is a 14.5% decrease over last year. However, this is a modest decrease, and is not indicative of a sinking ship. This is simply a dip in average home prices, We may see this type of trend over the next 6 months.
The good news is that many people will panic and sell their homes for rock bottom prices. Also, banks are not in the business of selling real estate, so they will be willing to sell their properties for low prices in order to move them. The bottom line is, it is not a good time if you need to sell your home, but it is a great time to invest in real estate. The old adage is buy low and sell high, and it is the beginning of a period where you can buy low.

More green space is coming to downtown St. Louis. According to an article by the post dispatch the city’s Preservation Board gave unanimous approval for the 20 Million Dollar sculpture park that will be created on the gateway mall. A group called the Gateway Foundation, a private agency that has placed art installations around the region, is paying for the project. This project will help create another aesthetically pleasing outdoor space in downtown St. Louis. It will be near the new Old Post Office Plaza.
Investment in green projects, such as this sculpture park are useful ways to attract business and residents to the region. St. Louis has a special taxing district called the Great Rivers Greenway District which uses a 1/10th of 1% sales tax to work“for a clean, green, connected St. Louis region. To deliver its mission, Great Rivers Greenway is spearheading the development of The River Ring, an interconnected system of greenways, parks and trails that will encircle the St. Louis region, enhancing the quality of life for residents and visitors. Purchasing property near this river ring could be a wise investment. Typically property values increase around parks, so there could be the same result near this greenway. Often we get frustrated with the ways our tax dollars are spent. I think the 1/10th of 1 cent sales tax is a small price to pay for a group that is working successfully to provide green space in the St. Louis region.

There appears to be a catch 22 in real estate investing. When the market is up, and it is easy to sell homes, it is difficult to acquire bargain property. When the market is down, and it is easy to acquire bargain property, it is difficult to sell your investment. However, there is always opportunity for a savvy real estate investor. Right now there are some good deals, especially on single-family homes. A good strategy now is to look for single-family bargains that can be rented. Typically, when the sales market has a downturn, the rental market has an upturn. After all, people need places to live. If your property is rented for a good monthly rent, the income stream will increase the value of the home because an investor will pay for it. In this situation you are buying a home from the residential market, and then selling it on the commercial market at an increased value. Or you can keep the property as an investment and profit from the income stream. When the sales market picks back up, you can more easily sell the property to a retail buyer. Purchasing rental property in this way is also a good way to speculate. Purchase a rental property in an area you feel will appreciate. Then use the rental income to pay for your investment in interim. For a savvy real estate investor there is always an opportunity.