Regardless of the area of Missouri, From Saint Louis to Independence, from Kansas City to Lee Summit, from Springfield to Columbia or any town or city in between Missouri like all other states has been affected by the global economic meltdown which followed the mortgage meltdown that preceded it.
Foreclosures are in no short supply in Missouri. The state ranks in the 27th in this dubious honor. The slightly blow average number of foreclosures is in large part due to Missouri's incredible success of decades of economic diversification. The state has transformed from an agrarian and trading outpost economy to an economy as varied as the nation itself. Major industries now include aerospace, transportation equipment manufacturing, food production and chemical processing, lighting manufacturing and of course beer production. This diversification is a major reason that the states gross product is over $225 billion while the state is 28th in population density. Missouri ranked 16th among all states in the number of Fortune 500 companies that are headquartered there.
Farming is still important part of the states economy overall as Missouri ranks in the Top 10 in the production of beef, poultry, dairy products, eggs and several other farm related categories.
The citizens of Missouri have the 25th highest household income in the nation. Along with the revolutionary transition of the economy was the migration of the residents of the state. This transition has created a density of population that has the vast majority of the population living in the major metropolitan areas of Greater St. Louis and the Kansas City metropolitan area.
Greater St. Louis is the commonly referred to as the St. Louis-St.Charles also known as Metro St. Louis. Greater St. Louis is the 15th largest in the United States, with a population of 2,900,000. The region is anchored around the Independent City of St. Louis, and includes the Missouri counties of Franklin, Jefferson, Lincoln, St. Charles, St. Francois, St. Louis, Warren and Washington; and the Illinois counties of Bond, Calhoun, Clinton, Jersey, Macoupin, Madison, Monroe and St. Clair, collectively known as the Metro-East.
The Kansas City Metropolitan Area is a 15 county metropolitan area straddling the border between the states of Missouri and Kansas and is anchored by Kansas City, Missouri. In 2008, it was estimated to have a population numbering just over 2 million. The metro is the second largest metropolitan area in Missouri after Greater St. Louis and is the largest metropolitan area with territory in Kansas. Satellite with populations over 100,000 population in the metropolitan area include Independence, Missouri; Kansas City, Kansas; Olathe, Kansas; and Overland Park, Kansas.
In 2007, Kansas City was recognized as third overall as one of the "Best Cities for Relocating Families" in the United States. Also in 2010, Money Magazine rated Overland Park, Kansas, the 7th best city to live in the United States. Neighboring city Olathe, Kansas, was rated 11th and Shawnee, Kansas, 39th best. Kansas City is one of two metro areas to have two cities in the top fifteen.
Foreclosures are more common in densely populated areas in every state and Missouri illustrates this point with the majority of all foreclosures occurring in the previously named cities and counties. Foreclosures rank 27th in the nation and unemployment is nearly identical to the national average of 9.7 percent. These statistics provide insight to the states robust economy. Although currently stalled, the economy and the real estate market should rebound slightly faster in Missouri than the national average but will require the subprime mortgages be purged from the system.
The sub prime mortgage meltdown being the primary reason the unemployment figure is as high as it is in a state that has several industry pockets of potential recovery. The best investment in the state remains real estate as the population of the state remains stable. This population consistency creates a completely new segment of residents that require homes to live in while not being currently mortgagable.
Until the sub-prime mortgages have been purged via refinance, sale or foreclosure, the number of foreclosures will continue at its current pace. Until such time wise investors in Missouri are looking at foreclosures as the best investment of our time. The real estate investment environment is unlike anything the residents in Missouri have seen before and should not be overlooked by both professional investors and homebuyers new to the market.
You should be buying homes that have gone to foreclosure. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market instead of trying to time the market to purchase on the exact day that the market sees its lowest point will allow smart investors to buy more foreclosed homes and rent them out or selling before buying additional homes and repeating the process. Remember all of those people that lost their homes will still need a home to live in and provide their family shelter. This new real estate environment is where the greatest boom in recent history for the state of Missouri will likely come from. If you are not in the game, get in the game.
