In a groundbreaking analysis from the National Bureau of Economic Research, a recent report has challenged some prevailing assumptions about the impact of lowering real estate agent fees on home prices. According to the findings, a reduction in agent fees, contrary to what some might expect, could lead to higher house prices. This is because lower future transaction costs enhance the overall value of housing as a durable asset, increasing consumer welfare, primarily benefiting current homeowners over prospective buyers.
For homeowners in St. Louis, this suggests a more complex real estate landscape where the benefits of lowered agent fees might not translate directly into lower home purchasing costs. Instead, the increased house values could affect both the affordability and investment perspectives on residential properties. This nuanced understanding of market dynamics underscores the need for professional guidance in navigating the real estate market, something MORE, REALTORS® is expertly equipped to provide.
For a deeper dive into these findings and their implications on the housing market, the full report is available for review. This detailed analysis can equip homeowners with the knowledge to make informed decisions in a shifting real estate environment. St. Louis residents looking to buy or sell homes can rely on the expert services of MORE, REALTORS®, where our deep local knowledge and commitment to client welfare drive every transaction. Read the full report here.
As of August 2024, the real estate market in Franklin County has shown some interesting trends. According to data exclusively from MORE, REALTORS®, the median sold price for homes in the county remained steady at $250,000, the same as August 2023. However, this represents a 9.26% decrease from July 2024 when the median sold price was $275,500.
On the other hand, the median list price for homes in Franklin County saw a slight increase of 1.00% from $250,000 in August 2023 to $252,500 in August 2024. This could indicate that sellers are still confident in the market and are willing to list their homes at a higher price.
Additionally, there were 106 home sales in Franklin County in August 2024, a 7.07% increase from 99 in August 2023. This could suggest that the market is still active and buyers are taking advantage of the stable prices.
Overall, while the median sold price remained unchanged, the slight increase in median list price and number of home sales in Franklin County show positive signs for the real estate market in the area. Stay tuned for more updates on the Franklin County real estate market from MORE, REALTORS®.
A significant change in property tax law took effect in Missouri on August 28, 2024, offering financial relief to many of our senior residents. The newly implemented Homestead Property Tax Credit is designed to help senior citizens manage their property tax liabilities more effectively. Here are the key points of the new law:
Eligibility: Missouri residents who are 62 years or older, own their home, and are liable for real property taxes.
Credit Amount: The credit equals the difference between the current tax liability and the tax liability during the taxpayer’s initial credit year.
Local Adoption: Counties can adopt the credit through an ordinance or a voter-approved referendum. The Homestead Property Tax Credit operates under a simple premise: protect senior homeowners from rising property tax liabilities. For eligible seniors, the credit stabilizes the tax amount payable to the figure from their initial credit year, shielding them from subsequent increases. This means if the property tax rises after a senior’s initial credit year, the tax burden will not.
For implementation, each county has the option to either pass a local ordinance or bring the matter before voters with a referendum. If approved via referendum, the ballot will pose a straightforward question about exempting seniors from increases in property tax liabilities due on their primary residences.
How Does the Homestead Act Work?
The Homestead Act plays a crucial role by defining the ‘homestead’ as the primary residence of the taxpayer, where the tax credit is applied. Here’s how it works:
Tax Stabilization: Once a homeowner qualifies, any increase in property tax assessments will not affect their payable amount, unless there’s new construction or improvements on the property.
Adjustments for New Improvements: If an eligible taxpayer makes improvements to their home, the tax liability will adjust accordingly for that year but will stabilize again for subsequent years.
Impact of Annexation: If a home is annexed into a new taxing jurisdiction where previously no real property tax was owed, the initial credit year’s tax liability will adjust to reflect the new obligations.
Helpful links to counties that have implemented the program already:
City of St Louis (program applications are closed until March 2025)
St Louis County (program is waiting on staffing and setup but you can sign up for email status notifications)
St Charles County (program applications are closed for 2024 tax bills)
This initiative not only offers financial relief but also promotes stability and predictability for seniors in managing their most significant investment—their home. As counties begin implementing these changes, it’s essential for residents to stay informed about how these adjustments could benefit them personally. For additional insights on navigating property tax changes or purchasing a new home, consider reaching out to our experts at MORE, REALTORS®. Our seasoned team is committed to providing tailored advice that protects and enhances your real estate investments.
In a newly released report by the Center for Demographics and Policy at Chapman University, St. Louis has been ranked the third most affordable housing market in the world for 2024. The Demographia International Housing Affordability report highlights that St. Louis continues to offer buyers some of the best value when it comes to housing, beating out major cities across the U.S. and globally.
For homebuyers in St. Louis, this is exciting news. While inflation and rising costs are still on the minds of many, the fact that the metro area remains such an affordable place to own a home offers a significant advantage. Sellers can also benefit from this, as affordability attracts a steady stream of buyers, even as national economic trends push homeownership further out of reach in many other markets.
St. Louis ranked third globally with a median multiple of 3.4, making it more affordable than cities like Cleveland, Rochester, and even some international hubs. This affordability keeps the local market accessible for a wide range of buyers, from first-time homeowners to seasoned investors.
The report serves as a reminder that, despite the financial challenges many are facing, St. Louis continues to offer some of the best housing deals in the world.
35 Most Affordable Housing Markets In The World
(click on table below for complete report)
Source: Center for Demographics and Policy, Chapman University.
As housing costs rise in St. Louis, many are worried about the price of owning or renting a home. However, a recent Gallup poll reveals that 41% of Americans now rank inflation and the high cost of living as their top financial concern, far outpacing housing costs, which are the main issue for 14%. A Gallup spokesperson noted, “For the third year in a row, the percentage of Americans naming inflation or the high cost of living as the most important financial problem facing their family has reached a new high.”
Despite these concerns, the St. Louis metro area remains one of the most affordable housing markets compared to other major cities. A report from Demographia International for the third quarter of 2023 rankedSt. Louis third in the world for housing affordability.
Whether you’re buying or selling, the experienced team at MORE Realtors INLINE TEXT Link – goes to agent website MORE, REALTORS® can help you navigate the market and make informed decisions in this affordable yet challenging environment.
Buying a condominium in the St. Louis metro area offers a unique lifestyle, but it’s important to understand that the process, and ownership structure, is different from purchasing a single-family home. Condominiums come with their own set of challenges and risks, especially in today’s market. If you’re considering buying a condo, here’s what you need to know to protect yourself and make a sound investment.
Understanding the Challenges
Buying a home comes with its own set of challenges and risks, which is why most people choose to work with a buyer’s agent. It’s crucial to use an agent with the knowledge and experience necessary to guide you through the process, addressing challenges and minimizing risks along the way. While condominiums may seem to be getting a “bad rap” today, they aren’t inherently bad; it’s just that condominium ownership is quite different from home ownership. As a result, not only do condos pose similar challenges and risks as home buying, but they also come with additional complexities unique to their purchase and ownership. I’ll cover the most common and significant issues here.
Financial Health of the Association: A Key Consideration
The financial health of the condominium association is a cornerstone of a sound investment. If you are obtaining a loan to purchase the condo, the lender will carefully examine this aspect to protect their interest through their loan to you. Insurance companies will also pay close attention to the financial health of the condo association, as this will affect the cost of insurance for the association’s buildings and common areas, or even determine whether insurance is available at all.
The Missouri Condominium Statute mandates that sellers provide a resale certificate containing crucial financial details before the sale of a condo unit, making it a good place to start your due diligence. If the resale certificate is not fully completed, do not accept it; instead, require that all information be provided in detail. It’s also important to note that not all condominiums sold in Missouri are required to have a resale certificate—such as in cases where the unit is sold pursuant to a court order, by foreclosure, by a government agency, or to a real estate professional who intends to resell or rent the units. However, even in these situations, I recommend that you condition your purchase on the receipt and review of a condo resale certificate, or at a minimum, the information typically provided with such a certificate.
While it is essential to pay attention to everything on the certificate, there are a few key questions on the form that you should particularly note and not overlook:
Operating Budget: The current operating budget of the association provides insight into the expected income and expenses for the year. Reviewing this budget allows you to assess how well the association is managing its finances. It can also reveal potential red flags, such as shortfalls, insufficient reserves for maintenance and repairs, and other issues that could indicate future condo fee increases or special assessments.
Reserve Funds: The amount of reserves available for capital expenditures and any specific projects planned. A well-funded reserve is crucial for covering major repairs without requiring additional contributions from unit owners. If the reserves are inadequate, you may face unexpected special assessments.
Upcoming Capital Expenditures: Any capital expenditures anticipated by the association for the current and two succeeding fiscal years. This helps you gauge whether the association is planning for the future and maintaining the property properly.
Special Assessments: Information about any unpaid common expenses or special assessments currently due from the selling unit owner. High or unexpected special assessments could indicate underlying financial problems or deferred maintenance issues that haven’t been addressed.
Insurance Coverage: Make sure the condominium association has adequate insurance coverage. Lapses in coverage, like those seen in some recent cases in Missouri, can leave you exposed to significant financial risks if a disaster occurs.
Pending or past litigation: If the association is currently involved in a lawsuit, the nature and severity of the case could pose an issue for your lender and may lead to increased insurance premiums for the condo association in the near future. This information should be disclosed on the resale certificate. Additionally, although it might not be noted on the resale certificate, it’s worth investigating any past litigation the association has been involved in. This can provide insight into problems or issues the condominium development has faced, which you can then investigate to ensure they have been resolved. If there are many lawsuits against unit owners for non-payment of condo fees, this should be a red flag, indicating a potential disconnect among owners that could affect the financial health of the condo in the future.
Essential Aspects to Review Before Purchase:
Availability of Financing: The average home in St. Louis can typically be financed through various loan types, including FHA, VA, and Conventional loans. However, condominiums are different. By default, they cannot be financed with FHA, VA, or conventional loans unless the development has been approved and maintains that approval, meeting specific conditions that vary depending on the type of financing. In addition to the factors already discussed, lenders will consider the percentage of condo owners who are delinquent on their fees, the amount of commercial space in the development, insurance coverage, and similar issues.
Percentage of investor owned units: It’s important to understand the composition of condo owners in terms of “owner-occupants” versus investors. This will not only affect your financing options but could also impact the financing available to a future buyer when you decide to resell, especially with common financing types like FHA, VA, and Fannie Mae Conventional loans. Additionally, a higher percentage of non-owner-occupied units often leads to a higher turnover rate and fewer residents with a long-term commitment to the condominium community.
Building Inspection: While it will incur additional costs, it’s a good idea to have your private building inspector not only inspect your unit during the building inspection contingency but also inspect pertinent common areas to the extent possible. Areas such as the roof, structural components, basement, and parking garages should be examined. Although maintaining these areas may not be your direct responsibility, if they are in poor condition or have serious issues, it could lead to unexpected special assessments in the future and may indicate neglect or poor management by the condominium association.
The Importance of a Knowledgeable Buyer’s Agent
Given the complexities involved in purchasing a condominium, having a knowledgeable buyer’s agent who understands these nuances is essential. The process of buying a condo is distinctly different from purchasing a single-family home, requiring a deeper understanding of the financial and legal intricacies specific to condo ownership. An agent experienced in St. Louis condo transactions can guide you through the process, helping you avoid common pitfalls and ensuring that your investment is sound.
In-Depth Due Diligence: A skilled agent will thoroughly review all necessary documents, including the resale certificate, and help you interpret critical information regarding the association’s financial health, pending or past litigation, and any history of special assessments. They will also ensure that you understand the implications of these factors for your future costs and the potential for unexpected expenses.
Local Market Expertise: An experienced agent who knows the St. Louis condo market will be familiar with specific developments that may have had issues in the past, such as structural problems, financial instability, or a high percentage of investor-owned units. This local knowledge is invaluable in helping you avoid developments with a history of problems and in making a more informed purchase decision.
Guidance on Financing and Inspections: A knowledgeable agent will guide you through the complexities of condo financing, ensuring you understand the unique requirements for FHA, VA, and Conventional loans in condo developments. They will also advise on the importance of conducting thorough inspections, not just of your unit but of common areas as well, to identify any potential issues that could lead to costly repairs or special assessments.
Why MORE, REALTORS is Your Best Choice
At MORE, REALTORS®, we offer unparalleled expertise in the St. Louis condo market. As one of the owners and brokers, I bring years of experience not just as a real estate professional, but also as a former developer who built condominium projects in the St. Louis area. Our team includes agents who have extensive knowledge of the intricacies of condo transactions and are well-versed in navigating the unique challenges they present.
Whether you’re a first-time condo buyer or looking to invest in another unit, our team at MORE, REALTORS can provide the guidance and expertise you need to make a confident and informed purchase.
Recent changes in the real estate industry have left many home buyers wondering if they need to sign an agreement before visiting an open house. The confusion stems from new practices that have emerged as a result of recent legal settlements affecting how agents work with buyers. The good news? If you’re just visiting an open house on your own, you don’t need to sign any kind of written agreement. The agent hosting the open house is there to represent the seller, not to bind you into a contract.
However, if you decide to work with an agent—meaning they start helping you find homes and setting up tours—that’s when you’ll likely need to sign an agreement. These agreements are designed to make sure everyone is on the same page about the services your agent will provide and what they’ll be paid. And remember, you’re in control—these terms are negotiable, so don’t hesitate to ask questions or request changes before you sign.
At MORE, REALTORS®, we’re committed to making the home-buying process as smooth as possible. If you have any questions or need further clarification, feel free to reach out to one of our professional agents. If you’d like to contact me directly, just click the “Email Dennis” link below: Email Dennis
The latest Chandan Economics report reveals a worrying trend for landlords in Missouri, where only 83.1% of tenants made their rental payments on time in August 2024. This figure is slightly below the national average of 84.9%, indicating that Missouri is feeling the strain more acutely. The state’s on-time payment rate reflects a broader decline seen across the country, with national rates dropping 50 basis points from July and 332 basis points from their post-pandemic peak.
For a more granular look at these trends, explore the live, interactive chart that tracks on-time payment rates by property type. This tool is particularly valuable as it highlights how different rental segments, including multifamily properties and single-family rentals, are performing in the current market. Understanding these shifts is essential for landlords and investors navigating Missouri’s challenging rental landscape.
The real estate industry is undergoing significant changes, especially concerning how commissions are handled between sellers and buyers’ agents. Recent legal settlements have led to new transparency rules, which clarify that sellers are not required to pay the commission for the buyer’s agent. This has raised concerns among potential homebuyers about the financial burden of paying their agent directly. However, these changes don’t necessarily mean you’ll be paying more out of pocket.
Understanding the Changes:
No Increase in Home Prices: The overall cost of homes hasn’t increased simply because of these rule changes. Home values remain the same. In fact, sellers who choose not to pay the buyer’s agent commission might offer their home at a lower price and still net the same amount as before. If a buyer needs a credit from the seller to cover their agent’s commission, the buyer might have to increase their offer to include the credit. But this adjustment merely brings the total cost back to what it would have been without the rule change.
No Extra Cash Needed: These changes do not increase the amount of cash a buyer needs to buy a home. Buyers can negotiate for a credit from the seller to cover their agent’s commission, ensuring that they don’t have to dip into additional savings to cover these costs.
Importance of a Knowledgeable Agent: In this new landscape, having a professional and knowledgeable buyer’s agent is more crucial than ever. A skilled agent understands the nuances of the market, can guide you through these changes, and is familiar with strategies to ensure you get a fair price. They’ll also structure your offer in a way that’s appealing to sellers while protecting your financial interests.
In conclusion, while it might seem daunting at first, these changes provide more transparency and can be negotiated in a way that doesn’t strain your finances. MORE, REALTORS® is here to guide you through these new waters, ensuring you get the best deal without unnecessary surprises.
In a recent telephone interview with an Inman News reporter, Michael Ketchmark, lead plaintiffs’ counsel in the groundbreaking Sitzer | Burnett case, emphasized the importance of strict compliance with the National Association of Realtors’ (NAR) proposed settlement. Ketchmark and his team are keeping a close eye on how the real estate industry rolls out these changes, warning that any attempts to evade the new rules will be met with swift legal action. “If anyone thinks they’re going to be able to avoid the application of this settlement agreement and the law by creating some new forms or hiding this cooperation on new websites, they’re wrong,” Ketchmark stated. He also underscored the long-term impact of the settlement, anticipating that while it may take time, the free market will eventually adjust to lower commissions.
Ketchmark expressed concerns about Zillow’s business model, which he believes was built on practices now being challenged by the settlement. “We just cut the legs out from under that,” he said, referring to Zillow’s referral-based system. Looking to the future, Ketchmark highlighted the upcoming litigation against Berkshire Hathaway Energy, which could result in hundreds of billions of dollars in damages.
As these significant shifts in the industry unfold, it’s crucial for homebuyers and sellers to have knowledgeable and ethical representation. That’s where the agents at MORE, REALTORS® come in—dedicated professionals who are committed to navigating this evolving landscape while keeping your best interests at heart.
Are you looking to buy or sell a home in the St. Louis metropolitan area? If so, you’ll want to pay attention to the latest data on the fastest selling zip codes in the region. According to recent statistics, the top three zip codes with the shortest time on the market are 62215 in Clinton-IL, IL, 62047 in Calhoun-IL, IL, and 63055 in Franklin, MO. These zip codes have an average of only 18 days on the market, making them highly desirable for both buyers and sellers.
In 62215, homes are selling at lightning speed with an average of just 17 days on the market. And with an average list price of $248,671, it’s clear that this zip code is in high demand. The second and third fastest selling districts, 62047 and 63055, also boast impressive numbers with 10 and 8 listings respectively and an average time on the market of just 19 days. So whether you’re a family looking for a new home or an investor seeking a quick turnaround, these zip codes are worth considering. For a complete list of the fastest selling zip codes in the St. Louis metro area, be sure to check out MORE, REALTORS®. Don’t miss out on your dream home or the opportunity to make a quick sale in these highly sought after zip codes.
During the 12-month period ending June 30, 2024, a total of 4,017 building permits were issued for new single-family homes in the St. Louis area. This marks a 2.34% decrease from the previous 12 months, which recorded 3,923 permits. According to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA), four of the seven counties covered in the report experienced a decline in permits. Lincoln County saw the largest percentage increase at a whopping 88.69%. Conversely, the City of St. Louis experienced the largest decrease, with an 27.93% decline.
The Consumer Financial Protection Bureau (CFPB) has released a comprehensive report highlighting the risks and challenges associated with “contracts for deed,” a form of seller financing often used as an alternative to traditional mortgages. While these contracts can provide a pathway to homeownership for some, the report underscores the significant dangers they pose, particularly to vulnerable populations, including low-income, Black, Hispanic, and immigrant communities.
Contracts for deed are often characterized by substandard housing, inflated prices, and a lack of consumer protections. Buyers assume all responsibilities of homeownership, yet they do not gain legal title until all payments are completed, which can span decades. The CFPB’s findings reveal that many of these contracts are structured to fail, with sellers retaining all equity and payments in the event of a buyer’s default. This practice perpetuates a cycle of exploitation, where homes are repeatedly sold without necessary repairs, trapping buyers in a never-ending loop of financial insecurity.
Because of these risks, it’s more important than ever to work with a trusted real estate professional who understands the local market and is committed to protecting your interests. At MORE, REALTORS®, we pride ourselves on guiding our clients through every step of the home-buying process, ensuring they avoid predatory practices like those associated with some contracts for deed. Our agents are dedicated to providing transparent, fair, and informed advice to help you achieve your homeownership goals safely and successfully.
John Pound, a former alderman of Des Peres, Missouri, has been sentenced to five years of probation and ordered to repay $292,305 after pleading guilty to embezzling funds from clients of his real estate management company, Commercial Realty Management Inc. Pound’s fraudulent activities spanned a decade, during which he manipulated financial records to siphon off larger commissions and management fees than authorized from a commercial property on North Euclid Avenue in St. Louis’ Central West End. His actions, which included falsifying QuickBooks entries and misrepresenting budgets, resulted in significant financial losses for his clients. Pound’s sentencing serves as a stark reminder of the importance of transparency and trust in real estate management.
Pound resigned from his elected position as an alderman in Des Peres, Missouri after his guilty plea.
The FBI investigated the case. Assistant U.S. Attorney Gwen Carroll prosecuted the case.
Are you looking to buy or sell a home in the St. Louis metropolitan area? If so, you’ll want to pay attention to the fastest selling school districts in the region. According to recent data, Signal Hill DIST 181 in Illinois takes the top spot with an average of just 19 days on the market for its 5 active listings. With an average list price of $2,611,780, this district is clearly in high demand.
Coming in at a close second is East Alton-Wood River DIST 14, also in Illinois, with an average of 21 days on the market for its 2 active listings. And in third place is Columbia DIST 4, also in Illinois, with 9 active listings and an average of 21 days on the market. Families looking to move to the St. Louis metropolitan area will want to take note of these fast-selling school districts. For the complete list of the fastest selling school districts in the area, visit MORE, REALTORS®. Don’t miss out on the opportunity to buy or sell in these highly sought-after areas.
The latest data from MORE, REALTORS® shows that the metro east real estate market is continuing to see strong growth. In July 2024, the median sold price for homes in the metro east update was $205,000, a 10.81% increase from July 2023 when the median sold price was $185,000. While this represents a slight decrease of 2.38% from June 2024, when the median sold price was $210,000, it is still a significant increase year-over-year.
The median list price for homes in the metro east update also saw a strong increase, rising to $200,000 in July 2024, an 11.17% jump from $179,900 in July 2023. This is a positive sign for sellers in the area as it indicates a high demand for homes.
In terms of sales, there were 715 home sales in the metro east update in July 2024, a 15.88% increase from 617 in July 2023. This further demonstrates the strong demand for homes in the area.
Overall, the metro east real estate market is showing steady growth and remains a desirable location for both buyers and sellers. For more detailed information, refer to the chart below, available exclusively from MORE, REALTORS®. Stay tuned for future updates on the metro east real estate market.
forAs a homeowner in the St. Louis metro area considering selling your property, one of the most pressing questions in the current real estate landscape is whether you should offer compensation to a buyer’s agent upfront. This question has gained significant importance due to the recent shifts in industry norms, especially following the National Association of Realtors (NAR) settlement of the Sitzer lawsuit and subsequent MLS rule changes. The outcome of these changes has dramatically altered how real estate transactions are approached, and it’s crucial to understand their implications on your selling strategy.
The Sitzer lawsuit settlement has made it clear that transparency and fair competition are now paramount in real estate transactions. Historically, it was customary for the seller to offer a commission to the buyer’s agent as an incentive to bring potential buyers to the table. However, with new regulations emphasizing transparency, the dynamics are shifting. The changes require more explicit disclosure of commissions, empowering buyers to negotiate their agent’s fees directly. This means that as a seller, you might not be obligated to offer upfront compensation to a buyer’s agent, but doing so can still play a strategic role in marketing your home effectively.
MLS rule changes have further transformed the landscape. Listings now clearly state what, if any, compensation is being offered to buyer agents, ensuring full transparency. This transparency means that the compensation for the buyer’s agent can now become a negotiating item between the buyer and the seller. Buyers are increasingly freed to include, as part of their offer, a request for a credit from the seller to cover the cost of their agent. This new approach can make the transaction more straightforward and tailored to the needs of both parties involved.
At MORE, REALTORS®, we understand the complexities of these changes and are here to guide you through the process. Our experienced agents are well-versed in the latest industry developments and can help you navigate these new waters effectively. Whether you decide to offer upfront compensation or negotiate it as part of the sale, our team will provide the expertise and support you need to make the best decision for your unique situation. Contact us today to learn more about how we can help you successfully sell your home in this evolving market.
The real estate market in St Charles County continues to show steady growth as we enter the month of August. According to the latest data from MORE, REALTORS®, the median sold price for homes in the county was $375,000 in July 2024, a 4.17% increase from the same time last year. This also marks a slight decrease of 4.03% from June 2024.
The median list price for homes in St Charles County was $369,900, a 5.69% increase from July 2023. This indicates a strong demand for homes in the area, as sellers are able to list their homes at higher prices.
In terms of home sales, there were 455 transactions in July 2024, a 3.17% increase from July 2023. This shows a continued trend of a healthy and active real estate market in St Charles County.
For a visual representation of this data, please refer to the chart below, available exclusively from MORE, REALTORS®. As always, our team of experienced and knowledgeable agents are here to assist you with all of your real estate needs in St Charles County and beyond. Contact us today for more information.
The St. Louis real estate market continues to show strong growth, with the median sold price for homes in the stl msa update reaching $288,500 in July 2024. This represents a 6.89% increase from the same time last year when the median sold price was $269,900. However, there was a slight decrease of 3.80% from June 2024, when the median sold price was $299,900.
The median list price for homes in the stl msa update also saw an increase, reaching $280,000 in July 2024, up 5.70% from July 2023. This indicates that sellers are able to command higher prices for their homes in this market.
According to the chart below, provided exclusively by MORE, REALTORS®, there were 2,944 home sales in the stl msa update in July 2024, a slight increase of 0.48% from the same time last year. This data shows that the St. Louis real estate market remains active and competitive.
As we continue to see growth in the St. Louis real estate market, it is a great time for both buyers and sellers to make their move. Whether you are looking to buy or sell a home in the St. Louis area, the experienced agents at MORE, REALTORS® are here to help you navigate this dynamic market. Contact us today to get started on your real estate journey.
When it comes to investing, we all want to make the smartest choice possible. We’ve all heard that age-old advice: “Invest in what you know.” For many of us here in St. Louis, what we know best is our homes. But how does investing in a home stack up against other common investments? Let’s take a look at the data below and find out.
Over the past two decades, the price of gold has skyrocketed by a whopping 786.57%, leading the pack with an annualized increase of 9.71%. While that’s impressive, not all that glitters is gold. Houses have also seen a significant increase, with home prices rising by 185.82% over the same period, resulting in a solid annualized increase of 4.54%. Compare this to the modest 23.15% increase in the salary of our hard-working Members of Congress, who seem to be getting less of a raise than the price of a gallon of gas! It’s clear that real estate remains a strong contender.
What’s more, investing in a home offers more than just financial returns. Unlike gold or gas, your home provides a place to live, memories to create, and a community to be part of. And let’s face it, you can’t host a barbecue in a pile of gold bars. Meanwhile, the price of a loaf of bread has actually decreased by 1.01%. So, while bread might be cheaper today than it was in 2000, it’s safe to say it won’t be replacing real estate in your investment portfolio anytime soon.
In conclusion, while the data shows significant growth in various sectors, investing in a home continues to be a wise and stable choice. It not only holds its value well over time but also offers unmatched personal and emotional benefits. So, whether you’re a first-time buyer or looking to sell and upgrade, remember that investing in St. Louis real estate might just be the best decision you’ll ever make.
Annualized Price Changes from 2000 to 2024 for Various Goods and Services
The real estate market in Franklin County, as of July 2024, continues to show strong growth and a steady increase in median home prices. According to data exclusively available from MORE, REALTORS®, the median sold price for homes in the county during July 2024 was $275,500, marking an 18.52% increase from July 2023 when the median sold price was $232,450.
Furthermore, last month’s median sold price of $275,500 also represents a 14.79% increase compared to June 2024, when the median sold price was $240,000. The median list price for homes in Franklin County also saw a significant increase, rising to $279,500, a 21.55% increase from $229,950 in July 2023.
In addition to rising prices, there were also 92 home sales in Franklin County during July 2024, a 17.95% increase from 78 sales in July 2023. This data indicates a strong demand for homes in the county, making it an attractive market for both buyers and sellers.
If you’re looking to buy or sell a home in Franklin County, now may be a great time to take advantage of the market’s growth and favorable conditions. Contact MORE, REALTORS® for expert guidance and assistance in navigating the Franklin County real estate market.
?agent_id=02107As of the end of July 2024, the St. Louis metro area has recorded 17,801 homes sold. This marks a slight increase from the same period last year, which saw 17,683 homes sold. Despite this year-over-year growth, the current sales figure represents a 7.6% decline from the median year-to-date home sales of 19,267 homes recorded between 1999 and 2020. Furthermore, when compared to the average year-to-date home sales of 18,855 homes from 1999 through 2024, this year’s performance is still trailing by approximately 5.6%. These statistics underscore a complex landscape for the St. Louis real estate market, balancing modest recent gains against broader historical trends.
For a detailed, live, and interactive chart showcasing YTD home sales for the St. Louis MSA from 1999 to present, be sure to check out the exclusive resource available from MORE, REALTORS®. This dynamic tool provides invaluable insights and allows users to explore the data comprehensively.
According to a recent study by LendingTree, Missouri ranks 9th in the nation for the lowest monthly mortgage payment. The report reveals that while the average monthly payment on a new mortgage in the U.S. is $2,317, Missouri’s average monthly payment is $1,792. This makes Missouri’s payments approximately 23% less than the national average, positioning it favorably among states with more affordable housing costs. This is particularly notable considering the current economic climate, where mortgage rates remain relatively high, and home prices continue to be steep.
The LendingTree analysis, which examined mortgages offered across the nation from January 1 through March 31, 2023, highlights that borrowers in Missouri benefit from more manageable mortgage payments compared to many other states. Interestingly, the Midwest shows a strong presence in the top 10 list of states with the lowest mortgage payments, with states like Kentucky, Ohio, and Indiana also making the cut. This regional trend underscores the Midwest’s overall affordability, making it an attractive option for homebuyers looking to invest in property without the burden of excessively high monthly payments. The full report by LendingTree provides further insights and comparisons across all 50 states, underscoring the variability in mortgage costs.
UPDATE: Friday, August 2, 2024…Today, after the jobs report and other economic data was released, mortgage interest rates fell to 6.40% on a 30-year fixed rate mortgage, the lowest level in nearly 16 months…the last time rates were this low was in early April 2023.
The interest rate on a 30-year fixed-rate conventional mortgage fell to 6.80% today, according to the MND rate index as shown in the chart below. This marks the lowest rate in over six months, since January 9th of this year when rates were at 6.80% as well. This drop in rates comes as the Federal Open Market Committee (FOMC) is meeting today and tomorrow.
The expectation for the Federal Reserve’s meeting is that they will likely keep interest rates unchanged at their current level of 5.25% to 5.50%, which is a 23-year high. This expectation is supported by the CME Group’s FedWatch Tool, which assigns a 97% probability to rates remaining steady during this meeting.
The latest homeownership rates released by the U.S. Census Bureau illustrate a stable housing market across various regions, with the Midwest continuing to lead in homeownership. The Midwest, where St. Louis is a prominent hub, saw a slight decrease from 70.2% in the second quarter of 2023 to 69.9% in the second quarter of 2024. This marginal decline still places the Midwest at the highest homeownership rate among all regions, underscoring the area’s enduring appeal and stability. As St. Louis continues to develop and attract new residents, the robust homeownership rate in the Midwest highlights the region’s economic resilience and attractiveness.
For St. Louis, these statistics reaffirm the city’s strength in the housing market. Despite a slight dip, the Midwest’s homeownership rate remains significantly high compared to other regions, indicating a healthy demand for homeownership. This trend is a positive indicator for real estate investors and homeowners in St. Louis, signaling a stable and thriving market. The city’s continued growth and development contribute to its sustained appeal, making it an attractive destination for potential homeowners.
The latest rental vacancy rates released by the U.S. Census Bureau highlight a significant shift in the housing market dynamics across various regions. Here in the Midwest, we experienced a noteworthy decline in vacancy rates, dropping from 6.9% in the second quarter of 2023 to 5.5% in the second quarter of 2024. This decrease suggests a tightening rental market in the Midwest, contrasting with the national trend where the overall vacancy rate slightly increased. As the Midwest continues to attract more residents and stabilize its housing market, St. Louis stands to benefit from this positive momentum.
The rental vacancy rates in the Midwest showcase a promising trend for property investors and landlords in St. Louis. The reduction in vacancies not only indicates a growing demand for rental properties but also reflects the region’s economic resilience and appeal. With the South experiencing a significant increase in vacancy rates, the Midwest’s decline underscores the region’s stability and attractiveness to potential renters. This trend is encouraging for those in the real estate market, signaling a thriving rental environment in St. Louis.
In a recent deep dive into the world of “office exclusive” listings, we uncovered some surprising trends within the St. Louis metropolitan area. Our previous analysis revealed that 22.6% of listings in St. Charles County and 28.8% in St. Louis County were classified as “office exclusive”, sparking a conversation about who truly benefits from these types of listings.
Unveiling St. Louis MSA Stats
MARIS, the regional MLS, holds the key to the actual number of office exclusive listings, a piece of data that remains hidden from public view and member brokers alike. However, through meticulous data compilation over the past 12 months, we found that out of 21,732 residential listings sold, 1,895—or 8.7%—appeared to be office exclusive. This conclusion was drawn from the fact that these listings had zero days on the market, meaning they went pending or under contract the same day they were listed. This typically indicates a sale process outside the MLS’s traditional search framework, pointing towards office exclusivity or similar methods.
The Seller’s Dilemma
As we highlighted in our prior article, while office exclusive listings might seem advantageous for maintaining privacy and exclusivity, they often don’t serve the seller’s best interests. “The only sellers who truly benefit from office exclusive listings are those who do not want the general public to know their home is for sale,” we noted. In reality, limiting exposure usually translates to fewer offers and potentially lower sale prices. This is particularly perplexing in a market like St. Louis, where high-profile sellers, who might prioritize privacy over price, are not as common. Thus, it’s surprising—and perhaps concerning—that nearly 1 in every 11 homes sold in the past year took this route.
Your Best Interests at Heart
At MORE, REALTORS®, our commitment to you, the seller, is unwavering. We believe in maximizing your property’s exposure to achieve the highest possible price. Our agents adhere strictly to fiduciary principles, ensuring that your interests always come first. By leveraging the full spectrum of marketing tools available, including the traditional MLS listings, we strive to deliver exceptional results tailored to your needs.
In today’s competitive real estate market, “office exclusive” listings have become a notable, and at times, rather heated, topic of discussion among agents. Recently, we took a closer look at the prevalence of these listings in St Charles County and St Louis County, Missouri. Our findings, illustrated in the chart below, reveal that 22.6% of listings in St Charles County and 28.8% in St Louis County are “office exclusive” listings.
Understanding Office Exclusive Listings
According to MLS rules, office exclusive listings cannot be advertised or listed on the MLS. This means they are not visible on the thousands of real estate websites that typically display MLS listings. Additionally, these properties cannot be shown to prospective buyers by any agents outside of the listing agent’s firm. The only agents who can show these properties are those within the same firm who have clients interested in these listings.
Who Really Benefits?
The only sellers who truly benefit from office exclusive listings are those who do not want the general public to know their home is for sale. These sellers might not want their property to be advertised or promoted publicly at all—no signs, websites, social media, etc. They also do not want open houses, or for all agents and buyers to know about the property. Typically, these sellers have specific reasons, such as being high-profile celebrities or figures whose privacy is worth more than achieving a higher sale price.
For most other sellers, this approach severely limits the exposure of their property. In contrast, a normal MLS listing is accessible to over 16,000 agents who are members of MARIS, our regional MLS. Furthermore, these listings reach hundreds or thousands of prospective buyers who have set up searches on real estate websites to find properties that meet their criteria. Additionally, these listings are distributed to thousands of real estate search websites, significantly broadening their reach.
The Agent’s Perspective
Listing agents might prefer office exclusive listings because it allows them to control the sale entirely within their firm, potentially increasing their commission if they have the opportunity to work directly with the buyer instead of paying a buyer’s agent a commission. This scenario can be quite lucrative for agents but often comes at the expense of the seller’s best interest. The reduced exposure can lead to fewer offers and potentially a lower sale price, which is contrary to what most sellers are looking to achieve.
The Importance of Choosing a Professional Agent
State license law mandates that agents have a fiduciary obligation to their clients, which means putting the client’s interests above all others, including their own. Selecting a professional agent who understands and practices this fiduciary duty is crucial. This commitment ensures that the agent works diligently to secure the best possible outcome for the seller, leveraging their expertise and the full spectrum of marketing tools available.
At MORE, REALTORS® our agents prioritize their clients’ needs and adhere strictly to these fiduciary principles. We focus not only on maximizing exposure through traditional MLS listings but also on providing comprehensive representation that covers all aspects of the selling process. Our dedication to professional ethics and our extensive knowledge of the market help us deliver exceptional results for our clients.
The Bottom Line
In summary, while office exclusive listings have their niche, the vast majority of sellers are better served by the expansive exposure that comes with a traditional MLS listing. It’s crucial for sellers to understand who truly benefits from office exclusive listings – and it’s often not them. Choosing an agent from MORE, REALTORS® means selecting a professional committed to your best interests, ensuring your property receives the attention and exposure it deserves.
Total Active Listings vs “Office Exclusive” Listings
This week, on July 23rd, the St. Louis REALTORS® Association implemented new and revised contract forms and agreements for use by Realtors throughout St. Louis and the surrounding areas. These updates are a direct response to significant changes in industry practices resulting from the settlement of massive class action lawsuits by the National Association of Realtors (NAR). For a detailed breakdown of these changes, you can refer to the settlement agreement below.
The revisions aim to align current practices with the legal outcomes of these settlements, ensuring compliance and fostering transparency in real estate transactions. One of the pivotal changes is the inclusion of clear, consistent language that reflects new industry standards and practices mandated by the settlement. This initiative underscores the importance of adapting to evolving legal landscapes to maintain professional integrity and trust with clients.
Upcoming MLS Rule Changes
In addition to the new forms, there are upcoming changes to the MLS rules effective August 1. These new rules will prohibit the display of commission offers to agents working with buyers in the MLS. This change has generated considerable confusion and anxiety among real estate professionals. Many agents are either unaware of the impending changes or are scrambling to figure out workarounds. However, there are dedicated professionals who are well-informed and prepared to adapt seamlessly.
The prohibition on displaying commission offers is intended to enhance transparency in real estate transactions by focusing on the value of the property rather than the commission structures. Despite the noble intent, the rule change has sparked debates within the real estate community, with opinions varying widely on its potential impact.
Embracing Transparency at MORE
At MORE, REALTORS®, we have been closely following these lawsuits since 2019, fully aware that industry changes were imminent. Our proactive approach has allowed us to prepare thoroughly for these changes, ensuring that our agents are not only compliant but also well-versed in the new practices.
We wholeheartedly embrace the idea of total transparency in transactions. This includes being upfront about how our agents are compensated, to whom they owe a fiduciary duty, and whom they represent in each transaction. Our commitment to transparency ensures that clients can trust us to act in their best interests at all times.
In conclusion, the recent updates to contract forms and MLS rules are significant steps towards greater transparency and compliance in the real estate industry. At MORE, REALTORS®, we are ready to lead by example, demonstrating our dedication to these principles and ensuring that our clients receive the highest level of service and trust.
Nestled in the western suburbs of St. Louis, Wildwood, MO, is a thriving community known for its picturesque landscapes, top-rated schools, and a blend of suburban and rural charm. Established in 1995, Wildwood offers residents a high quality of life with its extensive parks, trails, and outdoor activities, making it a sought-after location for families and outdoor enthusiasts alike.
For comprehensive and up-to-date listings of homes, condominiums, apartments, and more in Wildwood, visit WildwoodRealEstateSearch.com. This site is your go-to resource for finding properties in Wildwood, including upcoming open houses, sold listing information, and more.
Brought to you by MORE, REALTORS®, our team of professional, knowledgeable agents is dedicated to providing consumers with the best real estate resources across the St. Louis MSA and surrounding areas. Whether you are buying or selling, our expert agents are here to assist you every step of the way.
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