New sales of listings (an accepted offer) in St Louis in November are outpacing new listings with 1.06 new sales for every 1 new listing. As the leading indicator reports below illustrate (available exclusively from MORE, REALTORS®), for the first 3 weeks in November, there have been 2,139 new sales of listings and 2,026 new listings. At the same time a year ago, new sales outpaced new listings at 1.24 to 1, so the current trend is down 15%.
Worth noting in the data is that new sales of St Louis homes in the first three weeks of November 2021 are up 4.5% from the same period a year ago, new listings for the same period this year are up 23% from a year ago. This is a trend worth watching and if it continues, could help with the low inventory problem that has made the St Louis real estate market a brutal market for home buyers for the past couple of years.
As the charts below illustrate, at the beginning of this year, mortgage interest rates for a 30-year conforming conventional loan were at 2.771%, FHA loans were at 2.703%, and VA loans were at 2.372%. As of yesterday, those rates have increased to 3.357%, 3.468%, and 3.101% respectively.
While conforming 30-year conventional loans have seen an increase of 21% in rates (from 2.771% to 3.357%), FHA loans have seen an increase of 28% (from 2.703% to 3.468%) and VA loans have seen an increase of 30% (from 2.372% to 3.101%).
What does this mean in terms of the cost of a home?
To make the comparison simple, I’ll just base my comparison on the price of a “typical” home in the St Louis 5-county core market using the median price of homes sold in October which was $234,900. Downpayments will vary based upon loan type from no downpayment being required on a VA loan, to a minimum of 3% on a conventional and 3.5% on an FHA but based upon a loan amount equal to the median price of $234,900, below are the differences in the monthly payment on that amount by loan type from the beginning of this year until now:
Conventional – $948 to $1,023
FHA – $939 to $1,038
VA – $898 to $990
If we factor in the increase in home prices, it gets worse.
In the “to add insult to injury” category, home prices have increased significantly since January as well, In January the median price was $215,000, so between then and October the median price of a St Louis home increased 9.2%. With the interest rates increasing at the same time the cost of a typical St Louis home increased fairly significantly as shown below:
Conventional – $867 to $1,023 (+18%)
FHA – $859 to $1,038 (+21%)
VA – $821 to $990 (+21%)
The moral of the story…don’t wait to buy.
While I certainly can’t predict the future, especially given all the uncertainty in our economy with inflation, employment issues, etc, if I were in the market to buy a home I don’t think I would wait “until things get better”. The reason for my opinion is, as I’ve illustrated here, the true “cost” of a home (assuming you are not paying cash for it) is a combination of price and interest rate. So, even if home prices see an adjustment or the seasonal dip we often see during winter if interest rates continue to rise, is the higher cost of borrowing going to offset the lower price? I think that is a possibility. Or, the flip side, if interest rates go down but then prices go up, is the savings in lower rates lost?
To benefit from waiting, in terms of the cost of the home, we would need interest rates to stay the same, or decline and home prices to decline or interest rates to drop and home prices stay the same. Right now I don’t see either of the two aforementioned scenarios likely to happen.
Simply put, a Smart Home means your home has a control system that connects with your various appliances, systems, and features to automate specific tasks and is typically remotely controlled. The real estate industry, in conjunction with CNET, accepted definition is:
“A home that is equipped with network-connected products (aka “smart products,” connected via Wi-Fi, Bluetooth, or similar protocols) for controlling, automating, and optimizing functions such as temperature, lighting, security, safety, or entertainment, either remotely by a phone, tablet, computer, or a separate system within the home itself.”
Last week I published an infographic in an article illustrating that 65% of the homes sold in St Louis sold at or above the list price. As the infographic below shows, this is a significantly higher percentage than was experienced in the midwest region as a whole where 55% of the homes sold at or above full price.
There were 4,938 building permits issued for new single-family homes in the St Louis area during the 12-month period ended September 30, 2021, an increase of 6.38% from the same period a year ago when there were 4,642 permits issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). Five of the seven counties covered in the report saw an increase in building permits from the same period a year ago, three with a double-digit increase. St Charles County continues to show a trend of a slight decline in permits with this period falling short of the 12-month period ended last month.
St Louis New Home Building Permits -September 2021
In spite of the challenges of a low-inventory market as well as the threat of inflationary pressure on the economy, St Louis home sales still remain strong. As the infographic below shows (exclusively available from MORE, REALTORS®) year-to-date home sales through October of this year are outpacing last year by over 5% and the prior 3 years as well by an even larger margin!
Anyone paying even a little attention to the St Louis real estate market will likely be aware of the fact that we have been in a strong seller’s market for the past couple of years and St Louis home prices, as a result, have increased significantly. In fact, as the infographic below shows (exclusively available from MORE, REALTORS®) the median home price for a St Louis home has increased more than 50% in the past 14 years. However, the good news is that during that same period mortgage interest rates have fallen and remained low resulting an increase in the house payment on a typical home increase just over 5% during the same period!
Yesterday, I shared data showing that two-thirds of the homes sold in the St Louis 5-County core market (St Louis city and the counties of St Louis, St Charles, Jefferson, and Franklin) during October sold for the asking price or above. Today, I wanted to focus on just the luxury home market to see how that compared with the overall market. I included homes that sold for $750,000 or higher in this analysis.
As the infographic below shows (exclusively available from MORE, REALTORS®) there were 107 luxury homes sold (3.7% of all homes sold) during October in the St Louis 5-County core market with 41% of them selling at the list price or above. Drilling down further, we see that 28% of the St Louis Luxury homes sold for greater than the list price.
Two-thirds of the homes sold in the St Louis 5-County core market (St Louis city and the counties of St Louis, St Charles, Jefferson, and Franklin) during October sold for the asking price or above. As the infographic below shows (exclusively available from MORE, REALTORS®) there were 2,888 homes sold during October in the St Louis 5-County core market with 65% of them selling at the list price or above. One thing to remember about home prices though, and something you won’t hear from too many people reporting prices, is that not all sold prices are the “real” price.
For the past few years now, we’ve experienced quite the seller’s market in St Louis fueled, in part, by a low supply of homes for sale. As a result, St Louis home prices have increased over the past few years at rates close to double the historic norm. Of late, we’ve heard a lot from people within, and outside of, the real estate industry expressing concern that home prices have gotten too high and even some have made comparisons to 2008 when the housing market saw the bubble burst. Being the data nerd I am, I’ve tried to keep emotion out of it and instead turn to the data to see if there were indications that perhaps St Louis home prices have increased too much and we are in for a correction. Up until now, the data has led me to believe that St Louis home prices were ok and can be sustained. However, based upon current data, I have a little different opinion as I write this.
So what has changed in the data to indicate home prices are too high?
For starters, I haven’t said St Louis home prices are too high yet, I’ve just said that the current data has changed my opinion. Having said that, prices may in fact reached levels that cannot be sustained and may need a downward correction to put them back in line or they may have just peaked and will remain rather flat for a period of time to allow the market to “catch up” with the prices. And, of course, data over the next month or two could change for the positive and show we’re not there yet and home prices can still go higher without a problem. For now, I’m going to say that, based upon the data as well as the normal seasonal adjustments we see this time of year, I’m going to expect to see St Louis home prices to decline somewhat during the winter months like normal, but then perhaps remain relatively flat come spring rather than increase in the spring like normal.
My opinion is based upon several pieces of data that, collectively, are indicating a coming adjustment in home prices to me. I have the charts below that illustrate this point and here’s my recap on them:
Mortgage interest rates were at 2.65% for a 30-year fixed-rate loan at the beginning of this year, according to Freddie Mac’s Primary Mortgage Market Survey® and rose through the late winter months and started the spring housing season with rates hitting 3.18% on April 1st. This rate was the highest rate since June, 2020 when rates hit 3.21% and was the highest level for interest rates in 2021. This past week, according to the same market survey, the 30 -year fixed-rate mortgage interest rate hit 3.09%, the highest level in six-months, but still below the peak rate for the year of 3.18%.
As the chart below illustrates, mortgage interest rates for a 30-year fixed-rate mortgage have spent most of the time this year between about 2.75% and 3.0%. This is a pretty narrow fluctuation range and, even at the high of the range, or at the peak rate of 3.18% for this year, is still historically very attractive as evidence by the second chart below, one that shows mortgage interest rates for the past 10-years.
Like the majority of real estate companies in St Louis, our firm, MORE, REALTORS® is a member of the National Association of REALTORS®. One of the things that go along with membership is to agree to abide by the Code of Ethics. Within the code of ethics, is Article 12 which states, in part, “REALTORS® shall be honest and truthful in their real estate communication and shall present a true picture in their advertising, marketing, and other representations.” As with every article in the code of ethics, there are “standards of practice” to serve as examples of how that article should be applied. For this article there is Standard of Practice 12-2 which states “REALTORS® may represent their services as “free” or without cost even if they expect to receive compensation from a source other than their client provided that the potential for the REALTOR®to obtain a benefit from a third party is clearly disclosed at the same time.”
I have always taken exception to that standard of practice for a couple of reasons, including:
I don’t believe the statement is true.
I think good buyer’s agents work hard, know the value they bring to their clients and earn what they are paid. To think that an agent has to represent that their services are free in order to get a client to use them I feel is an insult to a professional agent.
The reason behind my first issue above is that while in a traditional home sale, the buyer may not directly pay the agent representing them (the buyer’s agent) they pay them indirectly. Typically, when a home is listed and sold using a REALTOR®, the seller agrees to pay commission to their agent (the seller’s agent) as well as to the Buyer’s agent. Why would a seller agree to do this? Well, they basically have no choice as, if they want their home listed in the REALTORS® MLS system (who doesn’t?), they must offer a commission to the agent that sells the home as it’s a rule. So, like it or not, the seller is going to “agree” to pay the buyer’s agent’s commission. To say the total commission the seller is paying does not affect the price they accept I think would be disingenuous. So, if the commission the seller has to pay affects the price they will accept from a buyer and the commission the seller is paying includes the buyer’s agents commission, I think it’s safe to say the buyers agents services to the buyer are not “free”.
The Department of Justice must feel the same way…
Clearly, I’m not the only one out there that feels this way. Last November the DOJ (Department of Justice) and NAR (National Association of REALTORS®) entered into a settlement agreement to end an investigation. One of the things NAR had to agree to was to no longer permit buyers agents to advertise that their services were free. Recently, this agreement fell apart and the DOJ and NAR are involved in legal battles now so we’ll see where that goes.
Why a good buyer’s agent is more than worth the cost…
So now I’ll get to my second point. A good, professional buyer’s agent is worth every dollar they make on a transaction and, quite frankly, often don’t really get paid enough. Before you roll your eyes and think I’m just another one of those people that have “drank the REALTOR® KOOL-AID®”, stick with me. I assure you I’m not one of those, I hate KOOL-AID®, avoid sugar as much as I can, and I don’t like hypocrites. I like to tell it like it is. Often, I’m very supportive of the real estate industry, the people in it the practices, etc, however, there are times I am not. But, getting back to buyer’s agents, I want to add another caveat…note the adjectives I used; “good and professional”. I’m not in any way saying all agents are created equal nor that all agents are worth what they get paid. However, there are a lot of great ones that are very dedicated to their profession, love serving their clients, do so in an exceptional way and more than earn the commission they make. I feel blessed in that in our firm, MORE, REALTORS® I’m literally surrounded by agents like that.
What are you going to do for me that makes you worth the price I’m going to pay for your representation? This is a good question to ask an agent you are considering to represent you as a buyer’s agent. If it were me, here are some of the things I would like to hear in the response as well as be convinced that this is what past clients have experienced and what I can expect from the agent:
Their knowledge and experience of the local market. They should know what the housing market is like, the prices, the trends, the inventory, etc.
Their knowledge of the type of real estate you are looking for. For example, if you love older homes, such as the 80+-year-old ones that exist in Kirkwood, Webster Groves, you are going to want an agent with extensive knowledge of older homes. This will be invaluable to you when evaluating the condition of the home, reviewing your building inspection, etc. If you are looking for a mid-century modern, it would help to have an agent that knows what you are talking about as well as where to find that style of home.
Their knowledge of the process and guidance they will give you. Today, we are very much in a seller’s market and buyers are having to compete with often a dozen or more offers on a home. You want an agent that is detailed, knows the process, the contract, and has a great grasp on how to best prepare you so that, when the time comes, your offer is seen in the best light possible by the seller. A good agent will not leave anything to chance in this area.
Their relationship and reputation in the industry. There is a fine line on this one, as you don’t ever want to choose an agent that is more concerned with what the agent on the other side of the deal thinks of them rather than fearlessly representing your best interests. However, you don’t want an agent that has a bad reputation in the industry or is known as someone that is impossible to work with. I would want to find one that I’m convinced will always have MY best interest in mind, that understands their fiduciary obligation to me, and is well respected by their peers.
Their commitment to my best interest. I would want an agent that is laser-focused on my interests and is going to work to do their best to get me what I want under the best terms and price. But, at the same time, someone that is confident and professional enough to also “stand up to me” if necessary to set me on the right track or to keep me from shooting myself in the foot.
When you take the time to go through some of the things above with an agent and find one that stands out as the best and most professional to represent you, I can almost guarantee that you are more than getting your money’s worth. I see it time and time again with our agents, where through knowledge and advice, negotiation or strategy, they save their clients not only money (and likely often more than the agent is being paid) but also time and frustration.
So, as my headline says, Buyer’s Agents AREN’T Free and as the things I point out above nor should they be.
Now it’s time for a shameless plug…do you want to be connected with a great, professional agent that is a Master of Real Estate? Just give me a call at 314.332.1012 or email me at Dennis@stlre.com and after I understand your wants and needs, I’ll connect you with the perfect agent for you!
I’ve written a couple of articles lately addressing the news reports about the housing market cooling down. As I’ve addressed in those articles, there has not really been much data supporting a significant cooling in the St Louis real estate market. Additionally, I’ve noted that, due to the seasonality of the housing market, and the fact we are headed toward winter, a cooling of the market would be the seasonal norm.
So today, I decided to pick an easier question to answer, “has the St Louis real estate market peaked?” The short answer is yes, I believe it has. This statement, by itself, is not all bad as it would NOT be good for St Louis home prices to continue to increase at the rates they have over the past couple of years. Not to mention, if we stay in this low-inventory market strongly favoring sellers much longer, many buyers are going to just give up and shelf the idea of buying for a while.
As usual, I’ll let the data speak for itself. I have several charts and tables below (available exclusively from MORE, REALTORS®) that I believe support that we have probably seen the St Louis market peak.
The St Louis housing market appears to be cooling off slightly with fewer home sales last month than a year ago in 3 of the 5 St Louis area counties that make up the St Louis 5-county core real estate market. As the charts below illustrate, the decline in the overall St Louis market was very slight, with 3,164 homes sold last month just 11 sales fewer than September last year when there were 3,715 homes sold in the St Louis5-county core market. The charts have complete details but below is a recap of home sales and prices by county for last month versus September 2020:
St Louis City & County – These two counties combined are the only in the core market to see an increase in sales last month from a year ago. Last month there were 1,710 homes sold, an increase of 4.6% from a year ago when there were 1,634 homes sold. Last month the median price of homes sold was $247,000 and increase of nearly 7.5% from last year when it was $229,900.
Franklin County – Last month there were 127 homes sold, a decrease of 13.6% from a year ago when there were 147 homes sold. Last month the median price of homes sold was $227,050 and increase of nearly 14.5% from last year when it was $198,300.
Jefferson County – Last month there were345 homes sold, a decrease of 6.8% from a year ago when there were 370 homes sold. Last month the median price of homes sold was $229,000 and increase of nearly 9.0% from last year when it was $210,000.
St Charles County – Last month there were 617 homes sold, a decrease of 10.8% from a year ago when there were 684 homes sold. Last month the median price of homes sold was $303,000 and increase of nearly 12.2% from last year when it was $270,000.
There were 4,926 building permits issued for new single-family homes in the St Louis area during the 12-month period ended August 31, 2021, an increase of 6.44% from the same period a year ago when there were 4,628 permits issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). Six of the seven counties covered in the report saw an increase in building permits from the same period a year ago, half of them with a double-digit increase and the other half with a slight increase. St Charles County saw new home permits fall by 1.18% from 1,777 permits to 1,756 permits during the period.
More and more today I’m seeing reports in the media about the housing market cooling down and sales slowing which, quite frankly, I have expected and keep watching for signs of it in the St Louis real estate market. However, in spite of a few blips on the radar, all the data I’m reviewing still shows pretty steady and consistent home sales in St Louis. Don’t get me wrong, I fully expect us to see a cooling of the St Louis market if for no other reason, winter will be here soon and then we’ll be headed toward year-end when the market always cools down. There are many factors that could come into play to further impact the market such as higher interest rates, a weaker economy as well as an influx of foreclosed homes hitting the market in the month ahead. For all of this, we will have to wait and see, but for now, things are pretty steady. Below are some charts and data that I feel support my thoughts on the market.
St Louis 5-County Core Market – Home Sales Trend
(click on chart for live, interactive chart)
As the chart above illustrates, the time it takes for a home to sell (days on market, represented by the brown line at the bottom) has been consistent the last four months, ranging from a low of 6 days to a high of 8 days. The green line shows the 12-month home sales trend and it has been fairly consistent the last 4 months as well, actually increasing in June, then dipping slightly in July only to rise again in August to nearly June’s level. Finally, the red line shows the median price per foot of the homes sold and that has also been consistent the last 4 months with a slight increase from $167/foot in May to $170 in June and then $171 in July and August.
St Louis Real Estate Trends Report
New Listings & New Sales (click on report for live report)
The above reports show that in the most recent week new contracts written for the sale of homes increased 29% from the week before and new listings increased 3% from the week before. During the week there were just about the same number of new listings as new sales at 764 and 767 respectively.
St Louis Area Supply of Listing Inventory
(click on report for live report)
The report above shows there is currently a 0.89 month supply of homes for sale in the St Louis 5-County market. This is only slightly higher than it has been in past months. Of the 5-counties in the core market, St Charles County has the lowest inventory of homes for sale with an inventory of just over half a month.
There were a total of 550 home sales in the St Louis 5-County core market during the 12-month period ended August 31, 2021, a decline of over 90 percent (90.5%) from the same period 10 years earlier. As the chart below (available exclusively from MORE, REALTORS®) illustrates, the St Louis distressed home sales 12-month trend peaked in May 2013 with 6,078 distressed home sales in the prior 12-month period and has fallen to just 550 distressed home sales for the 12-month period ended August 31, 2021. For the purposes of this report, distressed home sales include the sale of homes previously foreclosed on and being sold by banks or a government entity (such as FHA/VA) and short sales. Given that there has been a foreclosure moratorium in place for several months during the past year it’s not surprising the current trend is down but as the chart shows, the trend has been steadily downward since late 2013.
St Louis 5-County Distressed Home Sales – 01/01/2011 – 8/31/2021
There continue to be conversations by St Louis REALTORS® as well as other industry professionals as to whether or not the market is cooling off somewhat or slowing down. I keep watching the data closely to look for signs of a substantive change and while there are some, the market adjustments appear to be somewhat insignificant at this point. Last month, in an article about July’s market, I pointed out a slight slowing of the trend in July. Now, I’m taking a look at August, specifically, the number of new listings that came on the St Louis real estate market during that month versus the number of new sales during the month.
More new listings in August than a year ago, fewer new sales:
As the STL Real Estate Trends Reports below show (exclusively available from MORE, REALTORS®) 3,702 new listings came on the market in the St Louis 5-County core during August, an increase in new St Louis listings of 3.2% from a year ago when there were 3,586 new listings. Conversely, there were 3,861 new sales of homes last month, a decrease in St Louis home sales of 2.2% from a year ago when there were 3,949 new contracts written.
New contracts written exceeded listings again but not by as much margin:
During August 2020, the number of new contracts written on listings exceeded new listings in St Louis by about 10 percent (10.1%). Last month, new sales of St Louis listings only exceed the number of new listings by just over 4 percent (4.2%).
So, as I mentioned, the change in trend is slight, but something worth keeping an eye on.
There has been talk of “the market slowing down” and while there hasn’t been a lot of data to support that, we did see the sales trend slow slightly in July. As the home sales trend chart below shows, exclusively available from MORE, REALTORS®, the home sales trend for the 12-month period ending has increased every month of this year over the prior month through June. For the 12-month period ending in June, there were 30,055 homes sold marking the highest record since we’ve been tracking the data, however, for the 12-month period ending in July home sales decreased slightly to 29,974 homes.
More new listings than new sales…
A change I’ve also noticed lately is that the number of new listings hiring the St Louis market is outpacing the number of new sales, a reversal of the trend we saw until recently. As the STL Trends Reports below show, there were 881 new listings in the most recent week and 816 new sales. For the prior week, the trend was the same with 895 new listings and 807 new sales.
In June of this year the Median price of homes sold in the St Louis 5-County core market was $266,000, 6.4% higher than the median list price of $250,000 for those homes sold. This breaks the record of 4.4% set in April and is the highest gap we’ve seen between the median sold price and listing price since we’ve been tracking it, In July the gap narrowed though, albeit slightly, with the median price of homes sold coming in at $265,000, 6.0% higher than the median list price of $250,000. Worth noting as well is between June and July, the median list price of homes in the St Louis 5-County core market stayed the same and the median sold price decreased 0.3%..
St Louis 5-County Core – Sold Price to List Price – July 2020 – July 2021 Chart
There were 5,135 building permits issued for new single-family homes in the St Louis area during the 12-month period ended June 30, 2021 an increase of 12.91% from the same period a year ago when there were 4,548 permits issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). After all seven counties seeing an increase in building permits from the prior period for the prior 4 months, this month six counties covered in the report saw an increase in building permits from the same period a year ago. Also worth noting is that the 12-month total number of permits dropped slightly in June from May’s 5,201 permits and was also just slightly below April’s 5,138 permits.
For the past couple of years now you’ve heard how low the inventory of homes for sale is, and, if you are a buyer, you have no doubt experienced some grief or hardship in buying a home as a result. However, this may be changing. As the table below shows, there are currently 3,565 active listings in the St Louis 5-county core market (city of St Louis and counties of St Louis, St Charles, Jefferson and Franklin) which based upon the rate of home sales, works out to a supply of 1.41 months. This is a 50% increase from the supply (inventory) from June of 0.94 months. Granted, at 1.41 months, it is still VERY LOW from a historical perspective, but this is something to watch as it could be indicative of a change in the market.
What do the leading indicators show?
We don’t want to base too much on just one report for one month so to drill down a little further lets look at the STL Trends Reports, available exclusively from MORE, REALTORS®. Below the table is the New Listings Trends Report which shows for the most recent week reported, new listings were up 23% from the same period a year ago. There were 885 new listings in the St Louis 5-county core market during the week 7/18/21 – 7/24/21 as compared with 718 new listings for the same period last year. On the other side of the deal, so to speak, as the New Contracts Trends Reportshows, there were 890 new contracts written during that same week, a decline of 1% from the same period the year before.
Don’t sound the alarm yet..
As I’ve said, even with the increase in inventory it is still low and the trend reports are just for one week so we need to give it more time and watch the trend in the coming couple of weeks before we can determine that there is possibly a significant trend indicating a change in the market. Stay tuned…
Mortgage interest rates dropped peaked in the spring of this year with the rate on a 30-year fixed rate conventional loan hitting 3.353% in mid-March then staying near that range until mid-April when rates started to ease. In mid-June the rate had crept back up to 3.229% but last week dipped below 3% to 2.982%. As of yesterday, the rate has increased slightly but is still just a tad over 3% (3.019%).
Mortgage Interest Rates – 30 Years Conforming Conventional Loan -Past 12 Month Period
(click on chart for live, interactive chart and other loan types)
In the past couple of days there have been many news reports about new home sales in the U.S. declining and reaching a 14-month low based upon the latest report from the U.S. Census Bureau. As the table below shows, the reports are accurate as new home sales for June 2021 in the U.S. were at a seasonally-adjusted annual rate of 676,000 homes, the lowest annual rate in 14-months and a rate that is 6.6% lower than May and 19.4% lower than June 2020.. However, the good news for us here in the Midwest Region is, the same table shows that for our region new home sales in June 2021 were at a seasonally-adjusted annual rate of 92,000 homes, an increase of 5.7% from the rate for May 2021 and an increase of 7.0% from June 2020. All of the other regions, as well as the U.S. as a whole, saw a decline in annual rate from the month before as well as the year before.
What an interesting real estate market we’ve experienced in St Louis over the past few years! Seller’s fully expect their homes to sell the first weekend after hitting the market, with a feeding frenzy by buyer’s and bidding wars that drive the price above the list price. Buyer’s come to realize if they are going to be successful in buying a home they have to think fast, take chances and move quick! Heck, with a market like this, it’s no wonder a lot of folks, particularly sellers, don’t necessarily see a need for a real estate agent.
However, the reality is that sellers and buyers need a great agent now more than ever. Yes, I emphasized great as, like in any profession, there are varying levels of knowledge, experience and professionalism among real estate agents. In addition to having a great agent that agent needs timely, accurate market data, along with an understanding of the market resulting in complete market knowledge. Unfortunately, this combination is not easy to find.
As the chart below illustrates (available exclusively from MORE, REALTORS®), homes in St Charles County sold for a median price equal to nearly 105% of the current list price of the listing in June, which is the highest percentage of list price for the counties that make up the St Louis 5-county core market. For the 9 months up to and including January of this year, 4 of the 5 counties all had a median sold price equal to 100% of the current list price with Franklin County averaging less. In January St Charles county took off followed by Jefferson County, St Louis County and St Louis City all of which saw the median sold price exceed 100% of the current list price. Franklin County made it up to 100% but has stayed there.
St Louis Area Counties $ Of Current List Price Homes Sold For During Past 13 Months
There were 5,201 building permits issued for new single-family homes in the St Louis area during the 12-month period ended May 31, 2021 an increase of 17.19% from the same period a year ago when there were 4,438 permits issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). For the forth month in a row, All seven counties covered in the report saw an increase in building permits from the same period a year ago and with double-digit increases in all counties except Franklin.
In April of this year the Median price of homes sold in the St Louis 5-County core market was $250,000, 4.4% higher than the median list price of $239,450 for those homes sold. This is the highest gap we’ve seen between the median sold price and listing price since we’ve been tracking it. Last month the gap narrowed though with the median price of homes sold in May coming in at $258,000, 3.2% higher than the median list price of $249,900. Worth noting as well is between April and May, the median list price of homes in the St Louis 5-County core market increased 4.4% and the median sold price increased 3.2%.
St Louis 5-County Core Sold Price to List Price Chart
The Director for the Center for Disease Control (CDC), Dr. Rochelle Walensky, signed an extension to the eviction moratorium extending its expiration from June 30, 2021 to July 31, 2021. The CDC has indicated that “this is intended to be the final extension of the moratorium.”
For the 12-month period ended May 31, 2021, there were 30,225 homes sold within the St Louis 5-County core market, an increase in home sales of 13.91% from the prior 12-month period, according to the STL Market Report below, available exclusively from MORE, REALTORS®. During the same period, St Louis home prices increased 11.5% from a median of $213,000 to $237,500. As the report also shows, the current supply of listings for sale is low at 0.86 months.
STL Market Report For the St Louis 5-County Core Market
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