One of the Midwest’s largest and most centrally located cities, St. Louis is a thriving hub of activity. Despite its diversified economy, however, the city has not been immune to the ill effects brought about recently by the burst in the larger U.S. housing market bubble and the slide in prices nationwide.

Recently, however, the St. Louis real estate has seen a bit of a rebound, though it has not yet recovered to pre-crisis levels. According to the St. Louis Post Dispatch, in October, sales of existing homes in the St. Louis area were up by 27% from the same period of 2008, higher than the national average of a 24% increase. Sales were up in all 11 counties in the metro area, with St. Louis County accounting for the highest increase, with 36%.

Though sales volume gives reason for optimism, home values still have a way to go before recovering. In St. Louis County in October, the median price for residential real estate in St. Louis was $135,000, up by just $100 from the same period of 2008. That figure was negative in five counties in the metro area, though six counties showed positive increases, mostly spurred on by last year’s glut of underpriced foreclosed homes.

No doubt, many buyers searching the market for homes for sale in St. Louis are looking to take advantage of the federal government’s tax stimulus program, which offered rebates of up to $8,000 to qualified first-time home buyers. The rebate was recently extended to even more buyers by Congress, and will undoubtedly continue to drive the market.