Housing price hike hits 22-year high

Housing prices rose 8 percent in the St. Louis area last year, the biggest gain locally in 22 years, according to a federal report released Wednesday.

2005 was the best year ever for St. Louis home appreciation. The boom is still on.

We're catching up a bit, but we're still way below average," said Jack Strauss, an economist at St. Louis University. "We're still a long way from being overpriced."

St. Louis' 8 percent increase ranked the region 154th of 275 metro areas. The U.S. average was 13 percent.

Mortgage rates which are still historically low contribute significantly to this appreciation.

The median price of a house in the St. Louis metro area was $139,400 in 2005, up from $128,700 in 2004, according to the National Association of Realtors. The U.S. median was $207,300 in 2005, the association said.

Below are the top five U.S. metro areas in the terms of the increase in housing prices in 2005.

1. Phoenix 39.70%

2. Naples, Fla. 38.90%

3. Cape Coral, Fla. 36.20%

4. St. George, Utah 35.30%

5. Prescott, Ariz. 31.90%

154. St. Louis 8.00%

U.S. average 13.00%

Why St. Louis?

Whether you are relocating to St. Louis and trying to find out more about the city, or you are a St. Louis native looking for an easy way to access information about your favorite local attractions, there is a new web page that proves to be an excellent resource. Russell Nolting, president of St. Louis-based Nolting Real Estate is now hosting WhyStLouis.net, a webpage promoting all that St. Louis has to offer. The page was originally created to help attract education professionals to the St. Louis area. However, with everything from links to the St. Louis Cardinal's webpage to local data on the cost of living, WhyStLouis.net will be one you want to bookmark for info on life in St. Louis.