St. Louis, Springfield Among Worst Real Estate Markets According to New Report



When people are looking for more spacious homes after the pandemic and more people are working from home, the personal finance website WalletHub released a new report on the best and worst real estate markets in the US in 2021.

Mortgage rates rose only slightly above record lows due to the pandemic. For those with money to spare, it might seem like now is the time to buy a house. House prices have risen on average throughout the pandemic, but house prices and rents vary based on supply and demand in individual markets. Unfortunately, there may not be many good markets in Illinois.

Among the worst real estate markets in 2021, St. Louis was ranked fifth and Springfield ranked seventh worst in the country. Chicago (15th worst) and Peoria (14th worst) were also among the 15 worst markets. It was not the best year for the Illinois markets as a whole, as the top-rated market among those included in the report was Naperville, which was still in the bottom 100 (ranked 212) in the 300-city report.

“While the supply of housing has generally been inadequate in the last decade since the last housing crisis, the pandemic has certainly exacerbated the shortage and may have increased the demand for single-family housing as people prefer additional indoor and outdoor space,” said D. r Alan Tidwell. , assistant professor at the University of Alabama in a statement. “With so many uncertainties surrounding the COVID delta option, it’s hard to say with any certainty what to expect in the housing market in the coming months, but I do think supply will continue to be tight and demographics will remain. will be the determining factor. as millennials age and continue to buy housing, along with changes in housing preferences that allow more space. “

Two key metrics, including 18 metrics, were used to rank 300 markets. These dimensions were “Real Estate Market”, which included average market days and foreclosures as indicators, and “Affordability and the Economic Environment,” which included indicators such as housing affordability and population growth rates, the latter of which, likely to hurt the Illinois markets as well as many Illinois. According to the 2020 census, the population of the counties has declined.

Each market was assessed on a 100-point scale, 80 of which related to the measurement of the real estate market, and 20 to the measurement of affordability and economic environment. The data used to create this rankings were sourced from the US Census Bureau, Bureau of Labor Statistics, Council for Social and Economic Research, Zillow, TransUnion, Chmura Economics & Analytics, National Association of Realtors, ATTOM Data Solutions (RealtyTrac), and internal research at WalletHub …

“This is probably the worst time to buy a home since leading up to the 2007-2009 housing crash,” said Dr. William Miles, a research assistant at the University of Wichita. “Potential buyers find that they have to make bids well above the asking price, and still lose to those who offer higher bids. Some buyers refuse to inspect the home (which they may regret very much). One key difference between the current boom and previous spikes in home prices is that current buyers must have very good creditworthiness … Unfortunately, at the moment, there are no indicators that buyers can follow to suggest that homes are about to get bigger. affordable “.


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