Real Estate Market - St Louis Real Estate News

Update: Jury Returns Verdict in Sitzer Lawsuit, Awards $1.785 Billion in Damages

By Dennis Norman, on October 31st, 2023

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 →

Do Agents Steer Homebuyers?

By Dennis Norman, on October 24th, 2023

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 →

Remodeling Market Shows Signs of Cooling

By Dennis Norman, on October 12th, 2023

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 →

Is The Decline in St Louis Buyer’s Agent Commission Rates a Sign of Times to Come?

By Dennis Norman, on October 11th, 2023

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 →

Housing Market Sentiment Shifts: Buyer Optimism Hits All-Time Low as Seller Confidence Slightly Retreats from Record High

By Dennis Norman, on October 10th, 2023

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 →

Comparing Real Estate Markets: Rockwood vs. Ferguson-Florissant School Districts

By Dennis Norman, on October 9th, 2023

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 →

St. Louis Luxury vs. Non-Luxury Home Inventory: A Tale of Two Markets

By Dennis Norman, on October 8th, 2023

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 →

St Louis Supply Of Homes For Sale Hits Highest Level in Over 3 Years

By Dennis Norman, on October 2nd, 2023

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 →

St Louis Home Affordability Declines Double Digits From a Year Ago

By Dennis Norman, on September 29th, 2023

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 →

30-Year Fixed Rate Mortgage Interest Rate Hits Highest Level Today In Over 20 Years

By Dennis Norman, on September 25th, 2023

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.

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

Mortgage Interest Rates (MND Chart)

Continue Reading →

Do Landlords Have to Allow Support Animals If They Have a No Pet Policy?

By Dennis Norman, on September 23rd, 2023

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 →

Home Flipping In St Louis Down Nearly a Fourth From a Year Ago

By Dennis Norman, on September 22nd, 2023

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.

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

St Louis Home Flipping Report Q2 2023

(click on infographic to see complete report including prices and profits)

Continue Reading →

St Louis Real Estate Market Report for August 2023 with accurate data you can trust

By Dennis Norman, on September 13th, 2023

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 →

St Louis New Home Building Permits For The Past 12-Months Decline in all Counties Again

By Dennis Norman, on September 13th, 2023

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 →

Does it Matter??

By John Donati, on August 31st, 2023

Definitely a philosophical question but here we are talking about Smart Homes. Indeed, the adoption and implementation of the Matter Protocol could end up having a substantial impact within the real estate industry and all its intertwined industries. Before I get into why that is let me tell you what Matter is. In the context of smart homes, a protocol like Matter would define the rules and specifications for how smart devices, such as lights, thermostats, door locks, and more, communicate with each other over a network within a single ecosystem. So, here’s why I think it could have Continue Reading →

Most People Prefer Larger Homes with Larger Yards Over Walkability

By Dennis Norman, on August 31st, 2023

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

Continue Reading →

National Association of REALTORS Faces More Challenges This Week

By Dennis Norman, on August 29th, 2023

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 →

St. Louis City Considers New Ordinance Targeting Landlords

By Dennis Norman, on August 22nd, 2023

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 →

St Louis Mortgage Interest Rates Hit Highest Level in over 21 years

By Dennis Norman, on August 15th, 2023

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 →

St Louis Real Estate Market Report for July 2023 with accurate data you can trust

By Dennis Norman, on August 14th, 2023

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 →

St Louis Mortgage Interest Rates Stuck In the 7 Percent Range

By Dennis Norman, on August 7th, 2023

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 →

Missouri Ranks 29th In U.S. For Lowest Property Tax Rates

By Dennis Norman, on July 27th, 2023

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 →

St Louis Ranks as the Third-Best Metro For Homeownership

By Dennis Norman, on July 25th, 2023

According to a newly released report by Lending Tree, St Louis is the third-best metro area in the U.S. for homeownership. The report ranks homeownership in metro areas based upon the Median ratio of housing costs to household income for owner-occupied homes.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Best Metro Areas In The U.S. For Homeownership

(click on infographic below for the complete list with details)

Continue Reading →

Two St Louis Metro Area Cities Make The “Safest Cities In The U.S.” List

By Dennis Norman, on July 15th, 2023

In Ridgefield, Connecticut you only have a 1 in 510 chance of being a victim of crime, according to recent FBI data. This makes Ridgefield, CT the safest city in the U.S.! This is based upon the crime rate for crimes of arson, burglary, larceny-theft, motor vehicle theft, murder, rape, armed robbery, and aggravated assault for cities with a population of at least 25,000 people. As the map below shows, the St Louis metro area has two cities that made the list, Ballwin, Missouri (#41) and Edwardsville, Illinois (#33).

See all homes for sale, and recently sold homes in Ballwin Continue Reading →

Seventy-Eight Percent of Consumers Say Now is a Bad Time to Buy a House

By Dennis Norman, on July 10th, 2023

Every month Fannie Mae surveys consumers to gauge their sentiment toward whether its a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 78% of the people surveyed said they felt now was a bad time to buy a home, this is a decline from 80% in May. Conversely, 22% of consumers think now is a good time to buy a home up from 19% the month before. Interestingly enough, everyone had an opinion as the percentage of those that did not Continue Reading →

St Louis Real Estate Market Report for May 2023 with accurate data you can trust

By Dennis Norman, on June 15th, 2023

Below is the St Louis Real Estate Market Report for May 2023 for the City and County of St Louis combined from St Louis Real Estate Search (the Official site). You can access the full infographic, containing data for St Charles, Jefferson and Franklin Counties as well by clicking on the image below.

In this competitive market don’t make decisions based upon bad data!

Today’s real estate market is unforgiving for homebuyers, driven by a scarcity of inventory and robust buyer demand. This, coupled with not just bidding wars but “terms wars”, has made it challenging for many. In an Continue Reading →

FEMA’s New Risk Rating 2.0 Fully In Effect Now and Impacting Flood Insurance Rates

By Dennis Norman, on June 13th, 2023

As of April 1, 2023, the Federal Emergency Management Agency (FEMA) has put into action the National Flood Insurance Program’s (NFIP) Risk Rating 2.0, a newly devised pricing methodology. According to FEMA, this contemporary approach to flood risk assessment uses state-of-the-art technology and conforms to industry’s highest standards. The aim of this new model is to ensure that FEMA provides flood insurance rates that are not only actuarially justified, but also more equitable and comprehensible, and most importantly, they accurately represent the flood risk associated with a specific property.

There has been a fair amount of negative reports about the Continue Reading →

St Louis Home Mortgage Originations Drop To Lowest Level In Over 23 Years

By Dennis Norman, on June 1st, 2023

This might not come as a surprise, given that St. Louis home sales experienced a nearly 20% decline in the past 12 months compared to the previous year, coupled with 30-year fixed-rate loan interest rates approaching 7%. However, mortgage loan originations in St. Louis during the first quarter of this year have reached their lowest level since ATTOM Data began tracking them in the first quarter of 2000. As depicted in the chart below, both home purchase mortgages and total mortgage originations (including purchases and refinances) hit record lows in the first quarter of this year.

During the first quarter, Continue Reading →

National Association of REALTORS and Big Brokerages Dealt Another Blow In The Moehrl Class Action Lawsuit Today

By Dennis Norman, on May 25th, 2023

Today, the U.S. Court of Appeals for the Seventh Circuit denied a motion by the National Association of REALTORS® (NAR) and other defendants in the Moehrl v. The National Association of Realtors lawsuit. The motion sought to appeal the decision certifying this case as a class action lawsuit. As a result of this denial, the lawsuit will be allowed to proceed.

Click here or on the image below to see the full ruling.

Continue Reading →

Why Most Sellers Should Ensure Their Listing is in the MLS and Not “Office Exclusive”

By Dennis Norman, on May 8th, 2023

First and foremost, let me emphasize that home selling methods and practices are not a “one size fits all” approach. There are certainly situations where a different or unique strategy is required, including, in extreme cases, one that may not be in the seller’s best financial interest but favors a higher priority for the seller. For instance, I once handled a home sale for a woman with a stalker ex-husband who wanted her home sold discreetly – no sign, no ads, no MLS, etc. In her case, privacy and conducting the sale “under the radar” for her personal safety were Continue Reading →