A demand for homes: Housing market on the upswing in Southeast Missouri

The housing market can be a sort of economic barometer, but it can also be a fickle mistress.

Luckily, it's on the upswing in Southeast Missouri as more local residents are choosing to re-enter the real estate arena.

"There are more buyers and more inventory," says Bill Cole, real estate broker and owner of Realty Executives of Cape County. "For a while, the inventory was dropping. There were less buyers and less homes on the market. But it's starting to turn around now."

Kim Baker, a real estate agent for Century 21 Ashland Realty in Cape Girardeau, has noticed similar vibrations in the real estate market.

"Over the past few years it's been getting better," she says. "We've closed on more properties to date this year than we had this time last year."

Cole hesitates to dub it a "seller's market" just yet; he remembers the heady days before the recession, where having multiple offers on the same property was commonplace. But most metrics are now conveying optimism, and it's an optimism that sellers are becoming increasingly attuned to.

"People are realizing that rates are still great, that their homes may have appreciated in value," he says. "People are figuring maybe it's time to try the market again."

Baker saw the housing crisis from the trenches in 2008 when the market plummeted, but says there are plenty of signs of recovery in real estate. She points out that the foreclosure market, for instance, has subsided.

"It had been very active since the recession, but in Cape Girardeau County, we've seen a 15 percent drop in foreclosures," she says. "Less people are losing their homes."

Cole points out the steadily increasing rate of new construction as a similar indication.

"Both types, people building with the expectation to sell it and custom homes, they're both rebounding," he says. "It's consistent with the increase in sales we've seen over the past few years."

Cape Girardeau developer Kenny Pincksten of Prestige Development agrees.

"I've been busy," he says. "Right now, today, things are going really good."

He's working up a plan to expand downtown Cape Girardeau toward the casino. He's having to deal with existing structures on the land, which he says is one of the reasons construction has picked up.

"When you're buying land in Cape, you're also buying somebody's home most of the time," he says. "Any lots that are still out there in Cape, they're a rare commodity."

Empty lots might be rare, but they're also increasingly in demand.

"Vacant ground is definitely up this year," Baker says.

So what can sellers do to capitalize on the blooming real estate market? Apparently, price the property right.

"Pricing is crucial," Baker says.

Adds Cole, "The most important thing is to set an appropriate price."

Higher-priced homes tend to sit longer on the market, and places where the price is wrong sit the longest.

What's a buyer to do when the seller holds most of the cards? Their homework.

"You need to be prepared," Cole says. "The more research you do, the better."

There are pitfalls that homebuyers often overlook; things like zoning regulations, crime statistics, the more subtle nuances of a mortgage.

"Also get pre-approved," Baker says. "That goes a long way when we can show the seller that the buyer is pre-approved."

She also agrees with Cole about the research.

"Once you buy it, it's your baby," she says.