There were 3,905 building permits issued for new single-family homes in the St Louis area during the 12-month period ended September 30, 2023. This represents a decline of 13.20% from the prior 12-month period, during which 4,499 permits were 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 a decline in building permits from the previous period with 4 of them seeing double digit declines. Warren County, on the other hand, saw a slight increase in permit activity for Continue Reading →
In a remarkable turn of events, just minutes after the jury sided with the homeseller-plaintiffs in the landmark Sitzer | Burnett trial, attorney Michael Ketchmark wasted no time in launching another legal salvo against the real estate industry. This new class action lawsuit, filed on behalf of three new homesellers, aims to further scrutinize the practices surrounding agent commissions.
The Defendants
This new lawsuit expands the list of defendants to include: Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate, Howard Hanna, and Douglas Elliman. Notably, the National Association of Realtors is once again named as a defendant, marking Continue Reading →
In a groundbreaking development, the jury in the Sitzer v National Association of REALTORS®, et al, lawsuit has returned a verdict in favor of the plaintiffs. According to reports by Inman News, the jury found against all defendants and awarded a staggering $1.785 billion in damages. This decision could have far-reaching implications for the real estate industry, potentially reshaping commission structures and business practices.
The lawsuit, which has been closely followed since its filing in 2019, questioned the legality of certain real estate commission practices. The verdict is likely to send shockwaves through the industry, prompting legal reviews and potentially Continue Reading →
The St. Louis housing market is undergoing some noteworthy changes, according to the latest data from MORE, REALTORS®. As of today, the supply of homes for sale in St. Louis stands at 1.43 months, a slight uptick from the 1.38-month supply reported at the end of September and the highest level in over 3 years. Additionally, the median price has settled at $260,000, and nearly half (48%) of the active listings have reduced their asking price from their original figures.
A Closer Look at Pricing Trends Two additional reports from MORE, REALTORS® offer a nuanced view of the market’s pricing Continue Reading →
I’ve been discussing and writing about the Sitzer v National Association of REALTORS®, et al, lawsuit since it was originally filed in 2019. My previous articles on this case, as well as the Moerhl suit—a similar lawsuit filed in Illinois—can be found at the links below, which are in chronological order with the most recent first:
Do Agents Steer Homebuyers? National Association of REALTORS and Big Brokerages Dealt Another Blow In The Moehrl Class Action Lawsuit Today How the real estate industry is going to be turned upside down and why sellers may no longer have to pay buyer agents Continue Reading →
Seller impersonation fraud, also known as deed fraud, is a growing concern in the real estate industry. This type of fraud involves forging the property owner’s signature to illegally transfer ownership of the property. A recent case in the City of St. Louis serves as a cautionary tale for homeowners.
A Disturbing Case in St. Louis
Bernadette Brown, a member of the Royal Realty Group LLC, recently discovered that a property owned by the LLC at 1129 Penrose Street, St. Louis, MO 63107, was conveyed to Keith Brown via a Quit Claim deed. Bernadette Brown claims her name was forged Continue Reading →
As if there wasn’t enough negative attention on the real estate industry, last week a study was released, “Et Tu, Agent? Commission-Based Steering in Residential Real Estate.” The study suggests that buyer agents may steer their clients away from properties offering low commissions. It argues that this is a key reason why agent commissions have remained high in the digital age, even as commissions in other industries have declined. According to the report, listings with the lowest commissions take 33% longer to sell and face a 75% greater risk of not selling at all.
So, is this true?
That’s a Continue Reading →
The National Association of Home Builders (NAHB) recently released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2023. The index showed a decline, with a reading of 65, which is three points lower than the previous quarter. Despite the dip, the index remains above 50, indicating that more remodelers view the market conditions as good rather than poor. However, the decline suggests that the remodeling market is experiencing some cooling off, particularly in larger projects.
Current Conditions and Future Indicators The Current Conditions Index, which is an average of three components including large, moderately-sized, and small Continue Reading →
During the 3rd quarter of this year, there were 1,200 properties with foreclosure filings in the St. Louis MSA, according to the U.S. Foreclosure Market Report by ATTOM Data. This marks a 17% increase in St. Louis foreclosures from the prior quarter and an increase of 32% in St Louis foreclosure activity from a year ago.
The table below reveals that the city of St Louis saw the most foreclosures during 3rd quarter, followed by the Illinois counties of St Clair and Madison.
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St Louis Continue Reading →
For years, the average buyer’s agent commission rate in the St. Louis real estate market has remained remarkably stable. According to a chart from MORE, REALTORS®, the rate has consistently been at 2.7% for not just the past five years but for over two decades. However, recent data shows a notable shift. Starting in June 2023, the rate dropped to 2.6%, followed by a further decline to 2.575% in July and 2.5% in August, where it remained in September.
A Response to Legal Spotlight?
The timing of this decline coincides with a period of increased scrutiny on real estate commissions, Continue Reading →
Every month, Fannie Mae surveys consumers to gauge their sentiment on whether it’s a good time to buy or sell a home. The results are published in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 84% of respondents said they felt now was a bad time to buy a home. This is the highest percentage holding this view since the survey’s inception in 2012.
On the flip side, 63% of those surveyed believed now was a good time to sell a home. This is a slight dip from last month’s 66%.
As for interest rates, a Continue Reading →
The St. Louis real estate market is a complex landscape, influenced by various factors such as location, amenities, and notably, school districts. In this article, we delve into an exclusive comparison between two St Louis school districts: Rockwood in west St Louis county and Ferguson-Florissant in north St Louis county. Utilizing the STL Market Reports provided exclusively by MORE, REALTORS®, as well as infographics depicting census data, we aim to offer a comprehensive overview of these markets for the 12-month period ending September 30, 2023.
Key Market Trends
Rockwood School District
Decline in Sales: The Rockwood School District saw a Continue Reading →
As a follow-up to my previous article on the diverging trends in luxury and non-luxury home sales in the St. Louis area, we now turn our attention to the current state of inventory in these two segments. The tables below (exclusively available from MORE, REALTORS®) reveals a surprising contrast: the supply of luxury homes (with a list price of $700,000 or above) in the St. Louis 5-County Core market stands at 2.13 months, while the inventory for non-luxury homes is only 1.40 months.
A Closer Look at Luxury Home Inventory
The 2.13-month supply of luxury homes in the St. Louis Continue Reading →
The St. Louis real estate market is experiencing a fascinating divergence in trends between luxury and non-luxury homes. According to the latest data from MORE, REALTORS®, the market for luxury homes—those priced at $750,000 and above—is on the rise, reaching its highest level in eight months. In contrast, the market for non-luxury homes, priced below $750,000, has been on a steady decline for about two years. This article delves into these trends, referencing two illuminating charts from MORE, REALTORS®.
Luxury Home Sales on the Upswing
The first chart from MORE, REALTORS® illustrates the upward trajectory of luxury home sales in Continue Reading →
There were 3,946 building permits issued for new single-family homes in the St Louis area during the 12-month period ended August 31, 2023. This represents a decline of 12.04% from the prior 12-month period, during which 4,486 permits were 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 a decline in building permits from the previous period with 4 of them seeing double digit declines. Warren County, on the other hand, saw a slight increase in permit activity.
According to the latest MLS data reported by MORE, REALTORS®, there is currently a 1.38-month supply of homes for sale in the 5-county core market of St. Louis. While this may not seem like a significant inventory, it’s worth noting that for the past few years, the supply was below half a month. It gradually increased to over one month and reached 1.38 months at the end of September. This represents the highest level of inventory, based on months’ supply, that the St. Louis area has seen in over three years. However, this is still well below the Continue Reading →
As a result of rising interest rates and home prices at levels higher than increases in income, homes in St Louis continue to become less affordable. In fact, according to data just released by ATTOM Data Research, home affordability declined double digits during the 3rd quarter of this year in all five counties that make up the St Louis core market. As the info graphic below illustrates, the percentage of wages needed to buy a home have, depending upon county, increased about a third to almost half from the historical “norm”.
Least affordable ever…
Three of the five counties that Continue Reading →
Interest rates for a 30 year fixed-rate mortgage hit 7.49% today as reported by Mortgage News Daily, marking the highest rate we’ve seen on this type of mortgage in over 20 years. The MND chart below only goes back to 2009 but the bottom chart, from the St Louis Fed Reserve goes all the way back to 1971. As the charts show, the last time mortgage interest rates were at these levels was over 20 years ago in late 2000.
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Mortgage Interest Rates (MND Chart)
Continue Reading →
With changing regulations, subdivision restrictions, municipal ordinances, state and federal laws, landlords certainly have a lot to keep up with today to make sure they stay compliant in their rental business. I’ve been in the business over 40 years, have an interest-and a fair understanding of- laws that affect real estate, yet still find it challenging to stay updated. Given this, I can only imagine the challenge faced by someone with a full-time career who also owns rental properties as an investment. Perhaps, this might be a compelling reason to consider hiring a professional property manager for your rentals. However, Continue Reading →
There were 788 homes and condominiums “flipped” during the second quarter of this year in the St Louis M.S.A., according to data just released by ATTOM Data Solutions. As the infographic below illustrates, these flips represent 8.7% of all sales during the quarter, a decrease of 23.9% from the prior quarter and a decline of over 22% from a year ago.
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St Louis Home Flipping Report Q2 2023
(click on infographic to see complete report including prices and profits)
The St Louis Real Estate Market Report for August 2023 is below and combines data for the City and County of St Louis.  This data is presented by MORE, REALTORS, recognized as a leading authority in St Louis real estate market intelligence.  We invite you to dive deeper into our comprehensive demographic, which also sheds light on the St Charles, Jefferson and Franklin County markets as well by tapping on the image below.
Navigating the St Louis property landscape requires precision…
In the current property climate, likened to a complex chess match, the price for ill-informed decisions can be high. Continue Reading →
There were 3,950 building permits issued for new single-family homes in the St Louis area during the 12-month period ended July 31, 2023.  This represents a decrease of 13.38% from the prior 12-month period, during which 4,560 permits were issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA).   All seven of the counties covered in the report saw a decline in building permits from the previous period.
Search St Louis Homes For Sale Search St Louis New Homes For Sale St Louis New Home Building Permits – Continue Reading →
According to a recent survey by the Pew Research Center, 57% of Americans say they would prefer living in a community where the houses are larger and farther apart even though schools, stores and restaurants are several miles away.  This is down from 60% when the same survey was done in 2021 and up from 53% from the 2019 Survey.
Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Majority of Americans Prefer Big Houses Over Walkability
As I’ve previously discussed, the National Association of REALTORS¬Æ (NAR) is grappling with a myriad of challenges. These range from multiple class-action lawsuits to scrutiny from the Department of Justice (DOJ). This past week, the organization faced two more setbacks.
First, a scandal erupted involving NAR’s President, Kenny Parcell. Reports suggest that Parcell was accused of sexually harassing women within the organization. While this news began circulating about a week ago, it gained significant momentum when the New York Times published an expos√© last Saturday. The report prompted industry-wide calls for Parcell’s resignation. Consequently, Kenny Parcell stepped down as President Continue Reading →
Last month, city of St Louis mayor, Tishaura Jones, signed into law a new ordinance which provides “access to legal representation for tenants facing eviction or equivalent proceedings”. Surprisingly, it does not appear that the tenant needs to show a final hardship or need for “full legal representation” to be provided at no cost as the bill defines a “covered individual” as “any residential tenant who occupies a dwelling located within the City under a claim of legal right, other than the legal property owner of the dwelling.” Another interesting thing in the ordinance is that it appears to include Continue Reading →
As the chart below illustrates, mortgage interest rates on a 30-year fixed rate mortgage hit 7.125% yesterday, the highest rate since April 5, 2002 when the rates were at 7.13%.
If you go back far enough in history, you’ll feel better about todays’ rates…
There is probably very little comfort in this for current home buyers but while we are experiencing the highest mortgage rates in over two decades, if we go back a couple of more decades or so in history we’ll see the current rates aren’t so bad. As the bottom chart below illustrates, over the 52-year period Continue Reading →
Below is the St Louis Real Estate Market Report for July 2023 for the City and County of St Louis combined from MORE, REALTORS®, one of the most trusted sources for St Louis real estate market data and information. You can access the full infographic, containing data for St Charles, Jefferson and Franklin Counties as well by clicking on the image below.
The current St Louis real estate market leaves little room for errors…
The real estate market today is like a tough game where making wrong decisions based on poor information can cost you. With few homes listed and Continue Reading →
As the chart below illustrates, since returning to 7% around the third week in May, the interest rate has pretty well stayed at the 7% level for a 30-year fixed rate mortgage with the rates for a 15-year fixed rate mortgage about 1/2% better.
Historically-speaking, it’s not that bad….
This won’t necessarily make you feel better if you are a home buyer today but, if we look at the bigger picture (like the bottom chart that goes back to 1971) we’ll see that our current mortgage interest rates are not as bad as they seem, historically speaking. . In fact, Continue Reading →
According to a study released earlier this year by WalletHub, Missouri property tax rates are the 29th lowest in the U.S. To determine the tax rates for this list, WalletHub took the median property tax payment for each state and divided it by the median property value to determine the effective tax rate. For Missouri, the median home price was $171,800 and median property tax was $1,676 resulting in an effective tax rate of 0.98%. Hawaii was the state with the lowest tax rate coming in at a scant 0.29% and New Jersey the highest at 2.47%.
WalletHub also compared Continue Reading →
There were 4,017 building permits issued for new single-family homes in the St Louis area during the 12-month period ended June 30, 2023. This represents a decrease of 11.05% from the prior 12-month period, during which 4,516 permits were 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 a decline in building permits from the previous period, with the City of St Louis and Lincoln County experiencing double-digit declines.
Search St Louis Homes For Sale Search St Continue Reading →