St. Louis Has 4th Highest Homeownership Rate of Major Metros in U.S.

Saint Louis Realtor, Dennis Normanst-louis-real-estate-realtor-dennis-normanAlmost 3 of every 4 housing units (73.8 percent) in St. Louis is occupied by a homeowner making St. Louis 4th in terms of homeownership of the 75 largest major metropolitan areas in the U.S.  In spite of the real estate market meltdown that began back in 2007, homeownership in St. Louis has remained fairly steady falling just one-half of one percent since 4th quarter 2006 when the rate was 74.3 percent.  Homeownership rates in St. Louis are 3 percent higher than those for the state of Missouri which, for the 4th quarter of 2012, was at 70.8 percent.  On a national level, the homeownership rate in 4th quarter of 2012 was 65.4 percent which is down from 68.9 percent in the 4th quarter of 2006. Continue reading “St. Louis Has 4th Highest Homeownership Rate of Major Metros in U.S.

What are going to be the hot St Louis real estate markets in 2013?

Saint Louis Realtor, Dennis Normanst-louis-real-estate-realtor-dennis-normanI don’t know that “hot” comes to mind when I think about any St Louis real estate market today, however, relative to the rest of the market, I think I can identify some St. Louis real estate markets that I feel are poised to perform better in 2013 than other St Louis markets.  Below are my charts showing some key market data for the top markets. Included in my data are 4 pieces of information that I think are key to determining the health of a local real estate market:

  • Home prices – I show what prices have done over the past 12 months. For a “healthy” market we would expect prices to be generally on the rise however, we don’t want them increasing at too fast of rate as, like we learned from the bubble, this is not good.
  • Inventory of homes for sale – Excess inventory of homes for sale put a damper on the market for some time and, as the basic law of supply and demand dictates, generally brings prices down…therefore I’m looking for inventories that have declined to near normal levels.
  • Days on market – another indicator of supply and demand in a market….for a market to be healthy we would expect to see homes sold within a reasonable period of time
  • Market Action Index – This gives us a quick snapshot of the health of the market focusing primarily on the balance of supply and demand. A “30” would be a balanced market not favoring buyers or sellers, above a 30 (up to a maximum of 60) indicates a “hot” market favoring sellers, below 30 (down to a low of 0) indicates a “cold” market and favors buyers. After what the real estate market has been through over the past 5 years, anything in the mid 20’s is great and a 30 is a real eye opener today.

Continue reading “What are going to be the hot St Louis real estate markets in 2013?

St Louis Makes List of Improving Housing Markets

dennis-norman-realtorThe National Association of Home Builders (NAHB) released their “Improving Housing Markets Index” for December and I was happy to see St. Louis as a new addition to the list this month! St. Louis was one of 83 new metro areas added to the improving housing markets list from the prior month bringing the total to 201 metro areas as of this month (7 metros were dropped from the month before.)

To make this list, metros must demonstrate a sustained improvement in home sales, home prices and employment rates, for at least six-consecutive months.  NAHB looks at the growth a metro has had since the “trough” (the lowest point reach during the slump) in each of these areas.  The report shows an increase in St Louis building permits of 3.3 percent from the trough in 06/11, an increase in St Louis home prices of 7.7 percent since the trough in 01/12 and a 2.2 percent increase in St Louis employment since the trough in 12/09. Continue reading “St Louis Makes List of Improving Housing Markets

St. Louis is the 5th most affordable metro area to buy a home

st-louis-real-estate-realtor-dennis-normanAccording to a report released this week by Interest.com, St. Louis is the 5th most affordable metro area in the U.S. with a median-income household having 23 percent more income than needed to buy a median priced home.  Number one on the list is Detroit where a median-income household has 45 percent more income than needed to buy a median priced home and, at the opposite end of the spectrum,  the least affordable metro is San Francisco where a median income is almost 33 percent less income than necessary to afford a home. Continue reading “St. Louis is the 5th most affordable metro area to buy a home

Government funds of up to $25,000 available to assist first-time home buyers

peter-wright-harp-

If you are considering buying your first home you may very well be asking yourself if now is the time, have prices bottomed out and trying to weigh the risks of buying a home versus the rewards.  Well, if this is the case, allow me to give you some things to put on the “rewards” side of the equation….

For starters, with mortgage rates at historic lows, your monthly mortgage payment in most cases should be much lower than what you are currently paying in rent!   Remember this…”Your Landlord says Hi…& Thanks You for Paying His Mortgage.”  Also, we have seen flexibility from sellers on negotiations and most are helping in paying for the buyers closings costs…so that just leaves the down-payment, and that may not be as much as you think…… Continue reading “Government funds of up to $25,000 available to assist first-time home buyers

Where are the hottest real estate markets in St. Louis?

saint-louis-real-estate-dennis-normanAs you may imagine, I spend a lot of time talking about real estate with people.  Some of the most common questions I hear is “how’s the market”, “where’s the best place to buy” and “what markets are hot“.  These are all questions that,  in the firm I’m a partner in (MORE, Realtors), we go to great expense and effort to provide answers to.  We pride ourselves on having the most current and accurate market data as well as in our ability to dissect the data, apply it to the local market and to a clients situation or transaction to insure it’s a successful transaction from all aspects.

With this in mind, we have just introduced 3 new reports that I think many people will find interesting and informative, one of which (shown below) is a real-time chart that shows the “hottest” real estate markets in St. Louis. Continue reading “Where are the hottest real estate markets in St. Louis?

Is there a 3.8 percent house sale tax in the health-care legislation?

dennis-norman-st-louis-realtor-In the past few months I have received dozens of emails being forwarded around the internet warning of a new “3.8 percent real estate tax” or “tax on home sale” coming as a result of Obamacare. Given there seem to be many misconceptions out there about this topic I decided to address it this morning. For starters, there is not a 3.8 percent house sale tax in the health care legislation per se. There is, however, a 3.8 percent on unearned income for high-income individuals and couples that could end up being applied to the sale of one’s home. Continue reading “Is there a 3.8 percent house sale tax in the health-care legislation?

Should I Rent or Buy a Home?

dennis-norman-st-louis-realtor-Lately the $64 question for many people is whether to rent or buy a home. I think by now everyone knows that, as a result of the collapse in home prices and dirt-cheap interest rates, buying a home is now more affordable than ever, but for a lot of people there are still doubts or concerns that need to be addressed before making the decision whether or not to buy. Many of these issues stem around financing including; how much down payment will be necessary, what can I afford, etc. The American’s Banker Association (ABA)came out with five questions every potential buyer should ask when deciding to buy or rent a home that, along with the helpful online calculators they offer, I think may be very helpful: Continue reading “Should I Rent or Buy a Home?

New home sales and prices on the rise in April

dennis-norman-st-louis-realtor-real-estate-new-home-salesToday, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for April 2012 showing an increase of 3.3 percent from the month before, and an increase of 9.9 percent from a year ago. The seasonally-adjusted new home sales rate for April was 343,000 homes, up from a revised rate of 332,000 homes the month before. The supply of new homes on the market decreased to a 5.1 month supply from a revised 5.2 months the month before. The median new home price increased slightly to $235,700 from a revised median price of $234,000 the month before and increased 4.4 percentfrom a year ago when the median new home price was $224,700.

To see new homes for sale in the St Louis area click here.

Continue reading “New home sales and prices on the rise in April

St Louis home sales outperforms U.S. market in March

dennis-norman-st-louis-realtor-existing-home-salesToday’s existing home sales report from the National Association of REALTORS® shows U.S. existing home sales in March decreased 2.6 percent from the month before but the Midwest region saw sales activity remain steady coming in at the same rate as the month before.  Here in St Louis the story is even better as home sales for the St Louis five-county core (City of St Louis and counties of St Louis, St Charles, Jefferson and Franklin) increased 22.5 percent from the month before and increased 12.4 percent from a year ago. (not seasonally adjusted – see chart below).

Continue reading “St Louis home sales outperforms U.S. market in March

St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

“Ballparking” mortgage rates just is not the same anymore. Home buyers who obtain online quotes from popular websites and “shopping” mortgage rates on the phone are receiving nothing more than a starting point for what their final mortgage rate will be.  This is due to a government-led pricing scheme called loan-level pricing adjustments or LLPAs.

The government has taken the example of risk-based pricing from the auto insurance industry.  “Riskier” car owners pay higher rates for insurance, e.g. a driver with a few accidents and speeding tickets in their past will pay a higher premium than the driver with a clean driving record.  Continue reading “St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

Where is the St Louis Real Estate Market Headed in 2012?

dennis-norman-st-louis-real-estate-market-forecast-2012Shortly after finishing my video recap of the 2011 St Louis Real Estate Market I began analyzing our market data and giving thought to the 2012 St. Louis Real Estate market.  The end result?  The MORE St Louis Market 2012 Forecast.   For a link to my 15 minute video as well as a downloadable report, please submit your name and email address here and you will receive it immediately. Continue reading “Where is the St Louis Real Estate Market Headed in 2012?

St Louis Real Estate Market 2011 Recap

I just finished producing a video recapping the 2011 St. Louis Real Estate Market which includes, charts, graphs and facts about what took place in the St. Louis Real Estate market last year as well as where it ended up at year end.

This is a compliment to the weekly market update videos I produce that you can check out on our YouTube Channel, our facebook page or now you can subscribe to our ITUNES Podcast Channel to receive our updated market videos via podcast automatically each week! Just click here, then click on “Subscribe Free”.)

Continue reading “St Louis Real Estate Market 2011 Recap

St. Louis Mortgage Rate Update; Trends that will affect the housing market in 2012

The National Association of Realtors’ research staff recently released its comprehensive annual report: Profile of Home Buyers and Sellers for 2011.

Market researcher, Paul C. Bishop, Ph. D., Vice President and Jessica Lautz, Manager of Consumer Survey Research state that they’ve identified “trends that have not been seen in the last 10 years,” which will affect the housing market as we enter 2012. Continue reading “St. Louis Mortgage Rate Update; Trends that will affect the housing market in 2012

Home sales rise in November;  second consecutive month of increases

Dennis Norman

The National Association of REALTORS Pending Home Sales Index for November shows an increase of 7.3 percent in the index from the month before (seasonally adjusted), and a 5.9 percent increase from a year ago. This is the second consecutive month that the index has increased and marks the highest level the index has achieved since April 2010 when it was at 111.5.

Continue reading “Home sales rise in November;  second consecutive month of increases

Home sales jump in October to highest level in 18 months

Dennis Norman

The National Association of REALTORS Pending Home Sales Index for October shows an increase of 10.4 percent in the index from the month before (seasonally adjusted), and a 9.2 percent increase from a year ago. This is the first time in four months that the index has increased and marks the highest level the index has achieved since April 2010 when it was at 110.9.

Continue reading “Home sales jump in October to highest level in 18 months

St Louis Mortgage Rate Update; FHA good alternative for many home buyers

In this tighter credit environment, FHA remains to be a great alternative for buyers with limited resources for a down payment and closing costs or past credit problems. Underwriting guidelines are more lenient than conventional guidelines. Continue reading “St Louis Mortgage Rate Update; FHA good alternative for many home buyers

Housing market has performed pretty well during past decade relative to other investments

Dennis Norman, St Louis REALTOR - Home Prices Despite massive loss of value over the last few years, the U.S. housing market has outperformed the stock market since 2000.

A report released recently by RadarLogic showed that, over the past decade, the housing market, in spite of all of it’s recent troubles, has still performed better in terms of an investment than other typical investments such as the stock market. Continue reading “Housing market has performed pretty well during past decade relative to other investments

2010 Census Data Shows Second Hightest Homeownership Rate on Record Despite Largest Decrease since 1940

Dennis Norman St Louis Realtor, homeownership rates, census dataYesterday, statistician’s from the U.S. Census Bureau gave a briefing on highlights of the housing characteristics data contained in the 2010 Census. Several interesting facts came out, but the one that I found most interesting was that the data shows the U.S., at 65.1 percent, has the second highest homeownership rate on record for the period (see chart below). It’s not that all the recent talk about the decline in homeownership was unfounded however as the census data did show that the drop in the rate of homeownership during this last census period (2000-2010) of 1.1 percent is the largest decrease since the period from 1930-1940. Continue reading “2010 Census Data Shows Second Hightest Homeownership Rate on Record Despite Largest Decrease since 1940

Record low interest rates coupled with low prices make buying a home more affordable than ever

Dennis Norman, St Louis REALTOR - Mortgage Interest RatesThis morning, Freddie Mac released the results of it’s Primary Mortgage Market Survey revealing that the interest rate on a 30-year fixed rate mortgage averaged 4.01 percent, which is an all-time record low and the interest rate on a 15-year fixed rate mortgage averaged 3.28 percent, also an all-time record low! Continue reading “Record low interest rates coupled with low prices make buying a home more affordable than ever

Existing home sales on the rise in August; on pace to beat last year

Dennis NormanSt. Louis home sales in August were up 20.7 percent from a year ago according to today’s home sales for major metropolitan report from the National Association of REALTORS®.  St. Louis’ increase in home sales topped the increase nationally which was 18.6 percent from a year ago.  St. Louis home pricesin August came in at a median of $132,700, down 1.6 percent from a year ago.  Nationally, median home prices were down 5.1 percent from a year ago.

For More St. Louis Market Data – Click Here Continue reading “Existing home sales on the rise in August; on pace to beat last year

Today’s historically low rates increase your buying power! St. Louis Mortgage Interest Rate Update

Mortgage interest rates have reached historically low levels. It’s truly amazing how much the average borrower’s purchasing power has increased! The following chart tells it all. Check out the chart showing the history of interest rates as well as the examples of the savings below: Continue reading “Today’s historically low rates increase your buying power! St. Louis Mortgage Interest Rate Update

Is now a good time to buy a home?

Dennis Norman, St Louis REALTORSixty-nine percent of American’s polled in Fannie Mae’s National Housing Survey in August said that now is a good time to buy a home, this is up from 66 percent the prior month. Consumers are not in a home buying mode as a result of feeling good about the economy however as in the survey 78 percent said the economy is on the wrong track, up from 70 percent in July. Continue reading “Is now a good time to buy a home?

How to Earn Tax-Free Income as a Serial Homebuyer

Thomas J. Lucier - Avoid Bad Realtors
In my opinion, the capital gains tax exclusion that was granted to homeowners under the Taxpayer Relief Act of 1997, is the single best, wealth-building opportunity, that’s ever been made available to the average American. That’s because, under Section 121, of the Internal Revenue Code, a single homeowner can exclude, up to $250,000, from the sale of their principal residence, from capital gains tax, and a married couple, filing a joint tax return, can exempt up to $500,000. The only requirement is that a homeowner must have owned and occupied their home, for a total of twenty-four out of sixty months, prior to the sale. And best of all, homeowners can use this home sale tax exclusion, every two years, until they depart Planet Earth. Continue reading “How to Earn Tax-Free Income as a Serial Homebuyer

St Louis Foreclosures Drop in July; Down Over 35 Percent From Year Ago

Dennis Norman, St Louis REALTOR - St Louis Foreclosures, St Louis REO'sFinally some good news for the St. Louis Real Estate Market!  This morning RealtyTrac released their foreclosure activity report for the St. Louis metro area for July 2011 showing that foreclosure activity in the St. Louis metro area in July was down 8.77 percent from the month before and down a whopping 35.46 percent from a year ago!  Continue reading “St Louis Foreclosures Drop in July; Down Over 35 Percent From Year Ago

St Louis ranked 4th best performing real estate market in U.S.

Dennis Norman St Louis RealtorClear Capital just released their housing market report which, based upon data available through and including July 2011, has ranked the 15 best and worst performing housing markets in the U.S. based upon their quarter-over-quarter change in home prices.  St. Louis came in number 4 on the list of best performing metros with a 12.5 percent quarter-over-quarter increase in home prices!    See all the results below: Continue reading “St Louis ranked 4th best performing real estate market in U.S.

SAVE $$$…Reduce Your Mortgage; St. Louis Mortgage Interest Rate Update

One Additional Mortgage Payment a Year

There’s a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan’s principal. Continue reading “SAVE $$$…Reduce Your Mortgage; St. Louis Mortgage Interest Rate Update

Local Rehab Loan Program Allows Buyers To Take Advantage of Distressed Sale Bargains

Would you like to buy one of those foreclosure or REO bargains, but don’t have the cash to have the necessary work done?  There’s a new rehab loan program in St. Louis that will help homeowners do just this!  This program allows buyers to buy Bank Owned or Foreclosed Property (let’s call them “distressed homes”) and also borrow funds for the rehabilitation of these properties.  Continue reading “Local Rehab Loan Program Allows Buyers To Take Advantage of Distressed Sale Bargains

Owning a home still the ‘American Dream’

Dennis Norman St Louis Realtor

A recent survey conducted on behalf of Money Management International (MMI), the largest nonprofit credit counseling agency in the U.S., showed that the majority of Americans still view home ownership as the “American Dream“. The survey found that 81 percent of people still put a lot of value in owning a home however the number of people who rent has increased from 34 percent to 38 percent since December. Continue reading “Owning a home still the ‘American Dream’

St. Louis Real Estate Market Update – July 1, 2011

Weekly I produce a short (roughly 5 minute) video update on the St. Louis Real Estate Market that is published on various web sites. I do a quick recap of the news in the St Louis real estate market for the week, then an overview of the St Louis housing market itself. The update includes charts with up to the date data on the St Louis housing market including St Louis home prices, average time to sell a home in the St Louis area as well as other data and charts to show where the St Louis real estate market is and where it is headed. (Check out all our market update videos on our YouTube Channel – click here.) Continue reading “St. Louis Real Estate Market Update – July 1, 2011