Over the past few months we have seen St Louis home prices rise as the inventory of homes declines and buyers snap up the best deals about as fast as they hit the market. The question now is, “will home prices rise much more in the next year” and, if so, will they continue at the current pace? Well, 70 percent the agents surveyed during the month of June by Redfin say they expect home prices to rise “a little” over the next 12 months and just 16 percent said they felt prices would rise “a lot” (down from 44 percent 3 months earlier).
Agents overwhelmingly agreed that now “is a good time to sell a home”, with 86 percent in agreement, up from 82 percent that felt that way 3 months ago.
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Highlights from the survey:
- Recognize that it is still a strong seller’s market: 86% of agents surveyed described now as “a good time to sell,” up from 82% in the first quarter. Meanwhile, only 46% described it as “a good time to buy,” down from 57% in the first quarter.
- Expect more modest price gains: 86% of agents believe home prices will rise in the coming months, versus 97% in the first quarter. Sixteen percent expect home prices to “rise a lot,” down from 44% in the first quarter.
- Notice Less Competition: Just 11% of Redfin agents recommend that buyers use aggressive strategies such as waiving contingencies and expanding their budget when facing a bidding war, down from 15% in the first quarter, signaling a shift away from the fierce competition seen earlier in the year.
- Still struggle with low inventory and multiple offers: 93% of agents pointed to low inventory and multiple offers as the most common challenges facing buyers, down slightly from 96% in the first quarter.
- Are seeing an increasing number of new agents: 31% of agents have seen an increasing number of people in their area becoming real estate agents, up from 24% in the first quarter and 17% in the third quarter of 2012.
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