Dennis Norman - St Louis Real Estate News

Zip Codes in the St Louis Metro Area Where Homes Are Selling the Fastest

By Dennis Norman, on March 13th, 2024

The St. Louis Metropolitan Area continues to enjoy a fairly fast-paced sellers real estate market, with certain zip codes standing out for selling even faster than the current norm. According to the report below, available exclusively from MORE, REALTORS®, homes in the top 30 zip codes are selling at an impressive rate, with average days on market ranging from just 2 to 24 days. Leading the pack is zip code 63049 in Jefferson and St. Louis Counties, Missouri, where homes spend an average of only 2 days on the market. Close behind are zip codes in St. Clair County, Illinois Continue Reading →

City Commons: St. Louis’s Emerging Neighborhood Identity

By Dennis Norman, on March 13th, 2024

In downtown St. Louis, a significant transformation is taking place, not just in the physical landscape but in the very identity of a burgeoning neighborhood. An ambitious initiative led by a consortium of developers aims to rebrand a key area surrounding the new CityPark, home of the St. Louis City SC, as “City Commons.” This endeavor seeks to establish a distinct identity for the neighborhood, distinguishing it from the broader downtown area. CityPark, a $460 million stadium, along with over $1 billion in surrounding developments, serves as the catalyst for this rebranding effort. The objective is to create a Continue Reading →

The Risks of Split Closings in St. Louis: What Buyers and Sellers Need to Know

By Dennis Norman, on March 9th, 2024

In the St. Louis real estate market, ‘split closings’—where buyers and sellers close at different title companies—are a common practice. This is in contrast to most parts of the country, where a single title insurance company manages the closing for both parties. Although rare nationally, split closings have become a hallmark of the St. Louis real estate scene.

In a split closing, each title company plays a distinct role. The buyer’s title company is typically responsible for producing the title insurance commitment, ordering buyer-related items (like surveys), and coordinating with the new lender on figures and requirements. Conversely, Continue Reading →

St Louis New Home Constructions Begins 2024 Down From a Year Ago

By Dennis Norman, on March 7th, 2024

In the 12-month period ended January 31, 2024 the St. Louis area saw the issuance of 3,996 building permits for new single-family homes. This represents a decline of 3.64% compared to the previous 12-month period, which had 4,147 permits, according to the latest figures from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). This downward trend was noted across all counties with the exception of St. Charles County, with two counties reporting double-digit decreases.

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St Louis New Home Building Permits Continue Reading →

St. Louis MSA’s Population Dynamics Over 50 Years

By Dennis Norman, on March 4th, 2024

As the table and charts below illustrate, the St. Louis Metropolitatn Area (MSA) has undergone significant demographic shifts over the past 50 years, marked by a stark contrast between the population trends in the City of St. Louis and its surrounding counties.

St Louis MSA and Major Counties Population 1970-2022

The decline in the City of St. Louis’s population sharply contrasts with the growth in surrounding counties. During the same period that St. Charles County witnessed a 345% increase and the St. Louis MSA as a whole saw nearly a 60% rise, the City of St. Louis Continue Reading →

Smaller, Personalized Homes Dominate 2024 Trends: Insights from NAHB Study

By Dennis Norman, on February 29th, 2024

The dynamics of the new home market are shifting significantly as we advance into 2024, with a clear trend towards smaller, more personalized living spaces emerging nationwide. This evolution reflects a broader change in homeowner preferences and market conditions, according to the latest “What Home Buyers Really Want” study by the National Association of Home Builders (NAHB).

Recent data points to a decline in the average size of new homes, continuing a trend that began following a brief uptick in 2021. The average new home size has decreased to 2,411 square feet in 2023, marking the smallest average size in Continue Reading →

Newly Released Consumer Report Examines Buyer Agency Contracts Citing Unfair Provisions

By Dennis Norman, on February 28th, 2024

A report titled “Required Buyer Agency Contracts: Impacts On Home Buyers” was recently released by Stephen Brobeck, Senior Fellow with the Consumer Federation of America. In the introduction, Brobeck states, ‘This report will discuss several aspects of buyer agency contracts – important content, unfair provisions, format and timing, and recommended use by consumers.’ He suggests that state governments or the courts should prohibit certain unfair practices, such as allowing ‘buyer agents to arrange, with listing agents, additional compensation from sellers beyond what is negotiated with buyers,’ stating that such practices could ‘thwart any efforts to sufficiently separate buyer agent and Continue Reading →

Facing New Rules: NAR and DOJ Clash Over Buyer’s Agent Commission Policies – What It Means for You

By Dennis Norman, on February 26th, 2024

Kevin Sears,2024 NAR President

At a real estate conference in Boston on February 1, 2024, NAR President Kevin Sears addressed a pressing issue facing the National Association of Realtors (NAR) and its members. Sears candidly discussed the aftermath of a $5.4 billion verdict against NAR, drawing parallels to a sports scenario to highlight the disappointment of a loss despite believing in the righteousness of their policy and actions. He emphasized the importance of moving forward, focusing on the legal appeals process and the ongoing challenges with the Department of Justice (DOJ), which has been a persistent adversary for Continue Reading →

The Impact of Credit Scores on St. Louis Real Estate Decisions

By Dennis Norman, on February 21st, 2024

Whether you’re looking to buy or rent a home, your credit score is more than just a number—it’s a gateway to your future residence. A recent survey by LendingTree has shed light on the significant role credit scores play in Americans’ access to financial products, including those crucial for securing a home. Here’s a recap of the findings and their implications for the St. Louis real estate market.

Key Findings:

High Denial Rates: 42% of Americans reported their credit scores prevented them from obtaining a financial product in the past year, with this figure soaring to 74% among those with Continue Reading →

2024’s Top Paint Colors: Boost Your St. Louis Home’s Appeal

By Dennis Norman, on February 19th, 2024

In 2024, the focus for homeowners is clear: refreshing interiors with colors that offer both a sense of calm and a reflection of personal style. The 2024 Paint & Color Trends Report from FIXr reveals a shift towards warm, earthy tones and nature-inspired hues, designed to transform homes into serene havens. Greens, blues, bright yellows, and deep olives are set to dominate, promising spaces that not only stand out but also provide an escape from the daily grind. This year, it’s all about bringing the tranquility of the outdoors inside, with a nod to personal expression through bold color choices.

Continue Reading →

DOJ Suggests Ending Seller-Paid Buyer Agent Commissions

By Dennis Norman, on February 16th, 2024

Yesterday, the Department of Justice filed a Statement of Interest concerning the Nosalek v. MLS PIN case. In the class action lawsuit Nosalek v. MLS Property Information Network, Inc., plaintiffs allege that mandatory commission agreements for buyer-brokers on the MLS system are anticompetitive, leading to artificially inflated commission rates for sellers, in violation of antitrust laws. Previously, a settlement was reached by the parties in the lawsuit, but the DOJ intervened, asking the court to hear the views of the United States before deciding whether to approve the settlement. This statement of interest was what the DOJ asked the court Continue Reading →

St Louis Metro Area Real Estate Market Report for January 2024 with accurate data you can trust

By Dennis Norman, on February 14th, 2024

The St. Louis Metro Area Real Estate Market Report for January 2024, presented below, provides an overview of the St Louis real estate market for each county within the St Louis MSA. This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area.

St Louis Metro Real Estate Report for January 2024

(click on infographic for complete report Continue Reading →

Consumer Confidence in Mortgage Rates Soars, Marking a Positive Shift in Housing Sentiment for 2024

By Dennis Norman, on February 9th, 2024

The latest release from Fannie Mae on the Home Purchase Sentiment Index® (HPSI) is particularly illuminating, showing a notable uptick in consumer optimism towards mortgage rates. For the first time since March 2022, the HPSI has climbed to 70.7, a 3.5-point increase driven largely by heightened confidence in job security and an unprecedented share of consumers expecting mortgage rates to dip in the coming year. This optimism isn’t just numbers on a page; it’s a palpable shift in the air, with 82% of respondents now feeling secure in their employment prospects, and an all-time survey high of 36% predicting lower Continue Reading →

St. Louis Housing Affordability Increases Slightly In Last Quarter of 2023

By Dennis Norman, on February 8th, 2024

The latest figures from the NAHB/Wells Fargo Housing Opportunity Index reveal that 70.8% of people in the St. Louis MSA, with a median income of $101,200, could afford to buy a median-priced home. This percentage has seen a slight increase from the 3rd quarter of 2023, when it was 69.3%. As demonstrated in the chart below, this positions St. Louis as the 31st most affordable metro area for home purchases, out of the 242 that were ranked.

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St Louis MSA Housing Affordability & National Rank (2014-2023)

Continue Reading →

Despite High Demand and Low Inventory, St. Louis New Home Permits Hit Nine-Year Low in 2023

By Dennis Norman, on February 8th, 2024

In 2023, the St. Louis area saw the issuance of 3,891 building permits for new single-family homes. This represents a decline of 10.78% compared to the previous year, which had 4,361 permits, according to the latest figures from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). This downward trend was noted across all counties with the exception of St. Charles County, where five counties reported double-digit decreases. Additionally, Warren County, which had been on a four-month streak of increased permit activity, experienced a slight drop this month. The total of 3,891 permits in 2023 is Continue Reading →

St. Louis Residential Rental Vacancies for 2023 Hit Highest Level in Four Years

By Dennis Norman, on February 2nd, 2024

The latest residential vacancy rate data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) shows that the rental vacancy rate for 2023 was an average of 7.73% and increase of over a percentage point from the previous year. As the chart below illustrates, the average St Louis rental vacancy rate for 2023 was the highest in four years.

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St Louis MSA Rental Vacancy Rate 2015-2023

Continue Reading →

Home Ownership Rate in St. Louis Metro Area Fell to Lowest Level in Four Years in 2023

By Dennis Norman, on January 31st, 2024

The latest home ownership data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) reveals that the ownership rate in the 4th quarter of last year was 69.5%, a decline of over 2 full percentage points from the same quarter in the previous year. The Census Bureau reports home ownership rates on a quarterly basis, and the average rate for 2023 in the St. Louis metro area was 69.5%. This marks the lowest average homeownership rate for St. Louis since 2019, when it was 68.1%. The homeownership rate reached a recent peak in St. Louis in Continue Reading →

St Louis Metro Area Home Sales Fall to Lowest Level in 9 Years

By Dennis Norman, on January 24th, 2024

As 2023 drew to a close, the St. Louis metro real estate market concluded the year with a total of 31,747 homes sold. As highlighted in the chart below, this figure represents the lowest annual home sales in the St. Louis MSA in nine years, since 2014, when the total was 31,531 homes sold.

Home prices in the St. Louis MSA have shown more resilience than sales volumes. As 2023 came to a close, the 12-month median home price per foot stood at $169, marking a 5% increase from the previous year. This trend provides a stark contrast to the Continue Reading →

St. Louis Retirement Real Estate: A New Era According to Latest Report

By Dennis Norman, on January 20th, 2024

In the St. Louis real estate market, understanding the choices of retirees is crucial. The Merrill Lynch-Age Wave report, “Home in Retirement: More Freedom, New Choices,” offers valuable data-driven insights. It reveals a significant shift in retirees’ housing preferences, with a focus on lifestyle-driven relocation rather than just downsizing.

Key Insights:

Renovation Trends: Retirees are increasingly focusing on home renovations to improve comfort and safety. This trend is driven by the desire to age in place comfortably, adapting their living spaces to suit changing mobility and health needs, as well as to accommodate visits from family and friends. Continue Reading →

Exploring the 2024 Rental Affordability Report: Insights for the St. Louis Real Estate Market

By Dennis Norman, on January 18th, 2024

Today, ATTOM released its ‘2024 Rental Affordability Report,’ presenting a comprehensive analysis of the current state of home rental and ownership in the United States. The report indicates that renting a median three-bedroom home is more affordable than owning a similarly-sized property in nearly 90% of the U.S. markets. This trend continues despite rents growing faster than home prices. A significant finding for our industry is that both renting and owning pose substantial financial burdens on average workers, consuming over a third of their wages in most county-level housing markets.

Data for St. Louis County is consistent with the report.

Continue Reading →

New Single-Family Home Permits Dip by 14.71% in St. Louis Area; Warren County Bucks the Trend

By Dennis Norman, on January 17th, 2024

During the 12-month period ending November 30, 2023, there were 3,932 building permits issued for new single-family homes in the St. Louis area. This figure marks a 14.71% decrease from the previous 12-month period, which saw 4,515 permits issued, as per the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). The downturn was observed in all counties except Warren County, with five of them experiencing double-digit declines. Warren County notably reported an increase in building permits for the fourth consecutive month.

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Market Overload: Report Reveals Surplus of Agents in Real Estate

By Dennis Norman, on January 16th, 2024

In their report, “A Surfeit of Real Estate Agents: Industry and Consumer Impacts,” the Consumer Federation of America (CFA) sheds light on a pressing issue in the real estate industry: the overwhelming number of agents. This surplus, as detailed in the report, is not just a numbers game; it’s a matter of market efficiency and service quality, deeply affecting both agents and consumers in markets like St. Louis.

While I may not always agree with the Consumer Federation of America’s views, including certain aspects of this report, many of their points echo my own observations at MORE, REALTORS®. We constantly Continue Reading →

St Louis Metro Area Real Estate Market Report for December 2023 with accurate data you can trust

By Dennis Norman, on January 15th, 2024

The “St. Louis Metro Area Real Estate Market Report for December 2023, presented below, provides an overview of the St Louis real estate market for each county within the St Louis MSA. This infographic is a unique offering from “MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area

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St Louis Metro Continue Reading →

St. Louis Foreclosure Filings Plummet: Find Out What’s Happening in Your County

By Dennis Norman, on January 12th, 2024

The St. Louis MSA has seen a notable decrease in foreclosure filings in the fourth quarter of 2023, with the numbers falling to 851, a 19% reduction from the previous quarter. When we look at the year-over-year data, the decline is even more significant, showing a 46% drop from the fourth quarter of 2022. This downward trend suggests a potentially stabilizing real estate market in the St Louis metro area, with fewer properties entering foreclosure.

Within this broader picture, certain counties have experienced remarkable changes. Monroe County, for instance, recorded a sharp increase of 60% in foreclosure filings from Q3, Continue Reading →

Real Estate’s Game Changer: Decoding the Latest Twists in the Sitzer Saga

By Dennis Norman, on January 10th, 2024

Since the suit was first filed in 2019, I’ve been following the the Sitzer v. National Association of REALTORS® case closely and sharing my thoughts on the potential impact it could have on the real estate industry, as well as on home buyers and sellers. This task has been far from dull, as the litigation has been filled with action, especially since the Missouri jury’s ruling in favor of the plaintiffs in October. The past week has seen an increase in legal activity from the defendants, making the situation even more intense. Below is a breakdown of the latest events Continue Reading →

St. Louis Housing Market Sees Shift: Key Insights from 2023 Year-End Data

By Dennis Norman, on January 8th, 2024

The “STL Market Report,” below exclusively available from MORE, REALTORS, provides a comprehensive look at the St. Louis residential real estate market as 2023 ended. This report outlines a mixed array of trends, highlighting a notable decline in the number of homes sold contrasted with a modest increase in median sold prices, offering in-depth knowledge for prospective buyers and sellers to navigate the market.

Decrease in Home Sales Volume The St. Louis metro area witnessed a noticeable reduction in the volume of home sales year-over-year. A total of 31,704 homes were sold in the year ending December 2023, which marks Continue Reading →

St. Louis 2024 Housing Forecast: What to Expect in Home Sales and Prices

By Dennis Norman, on December 31st, 2023

As 2024 approaches, I conducted my customary in-depth analysis of historical St. Louis real estate market data to get my projection for St. Louis home sales and prices. Home sales in the five-county St. Louis core market appear to be gradually declining, based on statistics and trends from the previous ten years, as seen in the chart below

2024 St Louis Home Sales…

The data for the 12-month period ending December 31, 2023, will be available in a few days. I anticipate that home sales will be roughly 22,600 for the year, but there will be a slight decline by Continue Reading →

Big Brokers Hit with New Antitrust Lawsuit Over Buyer Broker Commissions

By Dennis Norman, on December 28th, 2023

The residential real estate industry is facing yet another antitrust lawsuit targeting the long-standing practice of home sellers paying the commissions of buyer’s agents. Filed on December 27th in Missouri federal court, Daniel Umpa v. National Association of Realtors alleges the NAR and large national brokerages like Compass and Keller Williams conspired to maintain inflated buyer agent commissions through anticompetitive practices.

This latest suit comes on the heels of the Department of Justice’s ongoing investigation into potentially anti-competitive industry practices related to real estate commissions and access to MLS listings. It also follows similar buyer broker commission lawsuits brought in Continue Reading →

NAR’s Tumultuous Year: Insights and Implications for St. Louis Real Estate

By Dennis Norman, on December 27th, 2023

The National Association of Realtors (NAR) is facing unprecedented difficulties, including antitrust lawsuits and charges of sexual harassment, according to a lengthy report published in the New York Times today by Debra Kamin. The analysis by Kamin offers a perceptive look at the internal turmoil and external challenges that NAR is facing.

The customary practice of listing agents paying buyers’ agents fees is called into question by a landmark lawsuit in Missouri that resulted in a $1.8 billion verdict against NAR. The report quotes Compass’s Jason Haber as saying, “This is an extinction-level event,” highlighting the seriousness of these occurrences. Continue Reading →

Is the REALTORS’ Clear Cooperation Policy Aiding Market Fairness or Fueling Legal Battles?

By Dennis Norman, on December 27th, 2023

Recently, the real estate industry has found itself under increasing legal scrutiny, with multiple lawsuits challenging established norms. A critical point of debate is the REALTORS’ Clear Cooperation Policy. This policy mandates that within one business day of marketing a property to the public, agents must list the property on the MLS. While designed to promote transparency and cooperation among real estate professionals, it’s worth asking: Is this policy partly to blame for the industry’s legal challenges, or does it genuinely foster a fair and open market in compliance with the Sherman Antitrust Act?

The Sherman Antitrust Act, a cornerstone Continue Reading →