Dennis Norman - St Louis Real Estate News

Interest Rates Hit Highest Level in Over 2-Years

By Dennis Norman, on February 12th, 2022

Mortgage interest rates were at 3.69% for a 30-year fixed-rate loan as of this past Thursday, February 10, 2022., according to Freddie Mac’s Primary Mortgage Market Survey®. As the chart below illustrates, mortgage interest rates hit a low of 2.77% in August of 2021 and have pretty much been trending upward since.

Within the last few days, there have been a lot of reports in the media projecting mortgage interest rates to go higher this year. A lot of it is based on the current inflation rates which are not good so if the economy and rate of inflation improve, Continue Reading →

Seventy-Percent of Consumers Think Now is a Bad Time To Buy a Home-83% Of Millennial’s Feel That Way

By Dennis Norman, on February 11th, 2022

According to Fannie Mae’s® Home Purchase Sentiment Index® (HPSI), 70% of consumers say it’s a bad time to buy a home while 25% feel it’s a good time to buy. As the chart below illustrates, this is the highest level reached for it not being a good time to buy in the 3-year period the chart covers. Actually, this is the highest level it’s reached since Fannie Mae began tracking the data in 2010.

Millennials are pessimistic about home buying…

The bottom chart also reflects the sentiment of consumers in the survey about buying a home now but Continue Reading →

Total New Homes Built In St Louis During 2021 About The Same As Prior Year

By Dennis Norman, on February 2nd, 2022

There were 4,825 building permits issued for new single-family homes in the St Louis area during 2021 which is 9 more permits than were issued in 2020, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). For the past few years, St Louis has experienced a strong seller’s market due to the low supply of homes for sale.

This demand certainly seems to be something that would encourage builders to increase the number of homes being built significantly. However, there are many challenges facing St Louis builders today Continue Reading →

Typical St Louis Home Price Increased Nearly 11 Percent In Past Year – Payment On The Home Increased 25%

By Dennis Norman, on January 23rd, 2022

Most anyone that is interested in buying or selling a home is pretty much aware of two things: there is a low inventory of homes for sale and prices have increased a fair amount as a result. That part is likely largely a result of basic economics related to supply and demand. When the demand is greater than the supply, prices will increase. In St Louis, home prices have done just that. As the chart below (exclusively available from MORE, REALTORS®) illustrates, the median price of homes sold in January 2020 was $221, 200 and in January 2021 was $245,000, Continue Reading →

How Much Of An Impact Does Your FICO Score Have On The Cost Of A Home?

By Dennis Norman, on January 17th, 2022

Today, thanks to many apps and access to information, all consumers have ready and easy access to their FICO (credit) score. Anyone thinking of buying a home no doubt knows their credit score will come into play in terms of qualifying for a mortgage but just how significant is your credit score? Is there really that much difference between a 670 and 700 credit score, or between a 700 and 741 score? Well, when it comes to mortgage rates, it does make a difference!

A 670 FICO vs a 741 FICO will run up the typical cost of St Louis Continue Reading →

Mortgage-Interest Rates Hit Highest Level In Over a Year

By Dennis Norman, on January 16th, 2022

Mortgage interest rates were at 3.667% for a 30-year fixed-rate loan as of this past Thursday, January 13, 2022. As the chart below illustrates, after dipping slightly the week prior, the rates this most recent week hit the highest level in over a year.

Mortgage rates for an FHA mortgage also hit the highest level in over a year too with rates hitting 3.743%.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates – 30 Years Conforming Conventional Loan -Past 12 Months

(click on chart for live, interactive chart and other Continue Reading →

New Home Building Permits Increase By Double Digits in Franklin County and St Louis City In Past 12-Months

By Dennis Norman, on January 15th, 2022

There were 4,851 building permits issued for new single-family homes in the St Louis area during the 12-month period ended November 30, 2021, an increase of 3.17% from the same period a year ago when there were 4,702 permits issued, according to the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St Louis HBA). Three of the seven counties covered in the report saw an increase in building permits from the same period a year ago, two of those, Franklin County and the City of St Louis, a double-digit increase.

Search St Louis Homes For Continue Reading →

St Louis Home Sales Trend Declining

By Dennis Norman, on January 14th, 2022

The home sales trend in St Louis is easing with 29,778 homes being sold in the St Louis 5-county core market during the 12-month period ended December 31, 2021, according to the chart below provided by MORE, REALTORS®. This 12-month rate of St Louis home sales has declined for the 3rd month in a row after peaking at 30,225 homes sold in the 12-month period ended September 30, 2021.

Leading indicator Reports Show a Downturn in Home Sales as well…

The STL Real Estate Trends Report, below the chart, shows new contracts written on listings for the most recent week Continue Reading →

December 2021 St Louis Real Estate Report

By Dennis Norman, on January 13th, 2022

St Louis Home Sales in 2021 Tops Year Before By Nearly 4 Percent – Prices Up Over 9 Percent

By Dennis Norman, on January 12th, 2022

As the STL Market Report (available exclusively from MORE, REATLORS®) below illustrates, there were 30,197 homes sold in the St Louis 5-county core market during 2021, an increase of 3.86% from 2020 when there were 29,075 homes sold. The median sales price of homes sold in the St Louis 5-county core market was $250,000 during 2021, an increase of 9.17% from 2020 when the median price of homes sold in St Louis was $229,000. The 5-county core St Louis market is comprised of the city and county of St Louis, along with the counties of Jefferson, Franklin, and St Charles. Continue Reading →

Flipped Home Percentage of Home Sales Increases – Profit Margins Decline

By Dennis Norman, on December 20th, 2021

There were 94,766 homes and condominiums “flipped” during the third quarter in the U.S., according to data just released by ATTOM Data Solutions. These flips represent 5.7% of all homes sales during the 3rd quarter of 2021, an increase of nearly 12% from the prior quarter when 5.1% of all homes sold were flips.

Gross profit margins dip to the lowest point since early 2011…

According to the report, the gross profit margin (the difference between the price paid for the flipped house when purchased versus the price paid by the new buyer when flipped) was $68,847. This represents a Continue Reading →

Foreclosure Filings In November Up 94% From Year Ago But Down 94% From 2010

By Dennis Norman, on December 17th, 2021

Last month, there were foreclosure filings on 19,479 properties in the U.S., according to ATTOM Data’s U.S. Foreclosure Market Report. This represents a decline of 5% from the month before but a 94% increase from a year ago, according to the report.

Let’s put it in perspective…

Data and statistics are funny things. Even when accurately presented they can paint a picture that may sound worse, or better than the real situation behind the data. This is why I consistently suggest that people don’t base opinions of the market, or make decisions, on one piece of data. It takes many Continue Reading →

Inflation Has Largest One-Year Increase In Over 39 Years – Will Home Prices Suffer?

By Dennis Norman, on December 11th, 2021

As you’ve probably heard by now, the most recent inflation news was not good. As the chart below illustrates, the Consumer Price Index (CPI) for all products in the U.S. (city average) for November 2021 was 303.4, an increase of 6.88% from a year ago when it was 284.1. This is the highest 12-month increase in inflation we have seen in over 39 years, since June 1982.

What effect will this record-setting increase in inflation have on home prices?

The second chart below depicts the percentage change in the inflation rate from a year ago (the blue line) as well Continue Reading →

St Louis New Home Building Permits Increase Nearly 6 Percent In Past Year

By Dennis Norman, on December 10th, 2021

There were 4,838 building permits issued for new single-family homes in the St Louis area during the 12-month period ended October 31, 2021, an increase of 2.98% from the same period a year ago when there were 4,698 permits issued, 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 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 Continue Reading →

St Louis Home Price Appreciation Slowing

By Dennis Norman, on December 8th, 2021

Even though you wouldn’t know it by today’s forecasted high in St Louis of 50 degrees, we are entering the winter housing market. Every year, year after year, the St Louis winter housing market reacts pretty much the same way with home prices dropping a little and sales slowing followed by an uptick in both come spring. With that in mind, the declines we see in home prices in the chart and report below, available exclusively from MORE, REALTORS®, could be attributed to the seasonal change but are a little early for that, and different than last year.

Sold home Continue Reading →

St Louis New Contracts On Listings Outpacing New Listings But By 15 Percent Less Than Last Year

By Dennis Norman, on November 26th, 2021

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 Continue Reading →

Mortgage Rates Have Increased Significantly This Year

By Dennis Norman, on November 24th, 2021

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 Continue Reading →

St Louis Beating Region On Percentage Of Homes Selling At Full Price Or Above

By Dennis Norman, on November 17th, 2021

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.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Continue Reading →

St Louis New Home Building Permits Increase Over 6 Percent In Past Year

By Dennis Norman, on November 15th, 2021

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 Continue Reading →

YTD St Louis Home Sales Through October Up Over 5% From Last Year

By Dennis Norman, on November 14th, 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!

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Continue Reading →

The House Payment on a Typical St Louis Home has increased just over 5% in 14 years

By Dennis Norman, on November 13th, 2021

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 Continue Reading →

Over 40% Of The Luxury Homes Sold In St Louis In October Sold At or Above List Price

By Dennis Norman, on November 12th, 2021

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 Continue Reading →

Two-Thirds Of Homes Sold In St Louis Core Market In October Sold At Or Above List Price

By Dennis Norman, on November 11th, 2021

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.

[xyz-ips Continue Reading →

Have St Louis Home Prices Finally Increased Too Much?

By Dennis Norman, on October 31st, 2021

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 Continue Reading →

Mortgage Interest Rates Hit Highest Level In Six Months

By Dennis Norman, on October 23rd, 2021

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 Continue Reading →

Buyer’s Agents Aren’t Free

By Dennis Norman, on October 21st, 2021

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 Continue Reading →

Has the St Louis Real Estate Market Peaked?

By Dennis Norman, on October 18th, 2021

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 Continue Reading →

St Louis Area Housing Market Report For September

By Dennis Norman, on October 13th, 2021

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 Continue Reading →

St Louis New Home Building Permits Increase In August In 6 of 7 Counties

By Dennis Norman, on October 9th, 2021

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 Continue Reading →

St Louis Home Sales Trend Remains Strong

By Dennis Norman, on September 24th, 2021

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 Continue Reading →