Real Estate Market - St Louis Real Estate News

St Louis Real Estate Market Update – Video

By Dennis Norman, on November 23rd, 2022

Is the St Louis real estate market going to crash? The national news is filled lately with reports of slowing housing markets throughout the country, increasing inventories, falling sales and prices. Some prognosticators are predicting some metro areas will see home prices fall by as much as 40 or 50 percent. Is the St Louis real estate market on a similar trajectory?? While I can’t predict the future, I can share data to help you see where the St Louis real estate market is currently as well as where the data shows it’s headed.

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Builders’ Housing Affordability Index Drops To Lowest Level Since Inception

By Dennis Norman, on November 9th, 2022

The National Association of Home Builders (NAHB) and Wells Fargo, jointly publish quarterly their Housing Opportunity Index (HOI) which shows the affordability, or lack thereof, of homes to a typical family. To arrive at an index value the median home price of recently sold homes for an area is taken into account as well as the median income for a family in that area. From this data the index is computed to show how affordable the typical home is to a typical family. The higher the index, the more affordable homes are to buyers in that market and the lower Continue Reading →

Franklin County Closed Home Sales In October Over 43 Percent Lower Than Last Year

By Dennis Norman, on October 28th, 2022

As the tables below show, so far during October there have been 52 home sales closed in Franklin County, down 43% from the same period last year when there were 91 sales closed. The median sold price this month for those closed sales in Franklin County has been $210,000 an increase of over 12 percent from the same period last year when the median prices homes in Franklin County sold for was $187,000.

The time it took listings to sell actually improved slightly with the median time being 43 days last October and 4o days this month. Last year the Continue Reading →

St Louis County Closed Home Sales In October Over 25 Percent Lower Than Last Year

By Dennis Norman, on October 28th, 2022

As the tables below show, so far during October there have been 704 home sales closed in St Louis County, down 26% from the same period last year when there were 955 sales closed. The median sold price this month for those closed sales in St Louis County has been $255,000 an increase of over 10 percent from the same period last year when the median prices homes in St Louis County sold for was $231,000. The time it took listings to sell has not changed with both periods having a median of 12 days and homes sold for a Continue Reading →

St Charles County Closed Home Sales In October Nearly 30 Percent Lower Than Last Year

By Dennis Norman, on October 27th, 2022

As the tables below show, so far during October there have been 278 home sales closed in St Charles County, down 28% from the same period last year when there were 388 sales closed. The median sold price this month for those closed sales in St Charles County has been $337,000 an increase of over 12 percent from the same period last year when the median prices homes in St Charles County sold for was 300. Another bit of data which is illustrates the overbidding we’ve seen in the past that has quickly come to an end for the most Continue Reading →

Survey Shows Majority Of Consumers Think Now Is A Good Time To Sell A Home But Not Buy One

By Dennis Norman, on October 27th, 2022

Monthly, Fannie Mae surveys consumers to gauge their sentiment toward whether it’s a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). As the chart below illustrates, in the most recent survey, which was just released, the HPSI index was at 60.8, the lowest level in nearly 11 years. No doubt the higher interest rates and softening economy are taking their toll on homebuyer’s optimism about the prospects of buying a home in the current market. This marks the seventh-consecutive monthly decline in the index and the first time since Continue Reading →

Home Builder Sentiment Falls For 10th Month In A Row

By Dennis Norman, on October 18th, 2022

The National Association of Home Builders (NAHB) released their NAHB/Wells Fargo Housing Market Index (HMI) report for October 2022 and, not surprisingly, it shows the builders are continuing to lose confidence in the market. As our chart below shows, the Housing Market Index (HMI), the red line, peaked in November 2020 at 90 and has, with the exception of a few minor upticks along the way, fallen ever since reaching 38, the lowest level since August 2012 when it fell to 37.

Search St Louis Homes For Sale Search St Louis New Homes For Sale Single Family Housing Continue Reading →

Showings On St Louis Listings Drop Below To Lowest Levels Of The Year

By Dennis Norman, on September 26th, 2022

It’s no secret that the real estate market slows down in the winter and typically nearly screeches to a halt from shortly before Christmas to shortly after New Years. Therefore, when tracking showing activity in the St Louis area, the first week of January of each year is used as the base, or “0” value and then each rolling 7-day period afterward is compared to that first week.

As the chart below shows, in 2020 and 2021 all weekly averages of showing activity were above the baseline of January until getting close to Thanksgiving, with the one exception being late Continue Reading →

Lawsuit Filed Against Zillow With Accusations of Wiretapping and Invasion of Privacy

By Dennis Norman, on September 15th, 2022

On Monday of this week, a federal lawsuit was filed in the United Status District Court for the Western District of Washington by Natalie Perkins and Kenneth Hasson against Zillow Group, Inc. and Microsoft Corporation. The suit was filed as a class action complaint on behalf of “All natural persons in the United States and its territories whose Website Communications were captured through the use of Session Replay Code embedded in Zillow’s website”.

In the complaint, the plaintiff’s allege that the defendants, Zillow and Microsoft, violated the Washington Wiretapping Statute (Wash. Rev. Code §9.73.030, et. seq.) through the use of Continue Reading →

Will The Housing Market Crash?

By Dennis Norman, on August 12th, 2022

Apparently a lot of consumers are concerned about the housing market crashing or at least concerned enough to be online searching for answers. According to Google Trends the search phrase “Will The Housing Market Crash?” has hit it’s 5-year peak in terms of interest level during the last 4-5 months. In addition, according to Google Adwords tools, there are 10,000 – 100,000 searches for month for the phrase “Will The Housing Market Crash?” and 100,000 – 1,000, 000 monthly searches for “housing market crash“.

Will there actually be a housing market crash in St Louis?

I guess first we should Continue Reading →

Yesterday’s Headlines Say Interest Rates Are Below 5 Percent – Why They Were Wrong

By Dennis Norman, on August 5th, 2022

I saw dozens and dozens of headlines yesterday reporting that mortgage interest rates had fallen below 5% on a 30-year fixed rate mortgage. The catch is on the day that was reported, yesterday, interest rates were actually above 5% on a 30-year fixed-rate loan. As our chart below shows, the MND Rate index was reporting 5.09% and, below that, Optimalblue was reporting 5.326%. Both of the aforementioned charts are updated daily and considered by many in the industry to have the most current and accurate information.

How could all the big headlines be wrong?

Well, actually the articles I scanned Continue Reading →

Most Consumers Who Sold to Opendoor Lost Money According to FTC Complaint

By Sandie Hea, on August 3rd, 2022

Maybe you’ve received an unsolicited offer recently to buy your home via email or postcard from Opendoor, a home buying firm. OpenDoor will make an offer on your house, bypassing the traditional method of selling your home via a REALTOR® using the MLS (which reaches 13,000+ REALTORS®) and entices you with catchy phrases on their website like “Get an instant offer and get paid” and “Skip showings and repairs”. It can sound good and SIMPLE but, according to the FTC complaint against OPENDOOR LABS, Inc. (Opendoor) and the agreement and consent order, “…consumers who sold to Opendoor have lost money Continue Reading →

Mortgage Interest Rates Ease Back to May Levels

By Dennis Norman, on July 22nd, 2022

Interest rates on a 30-year fixed-rate mortgage peaked at 6.28% a little over a month ago on June 14th, sending shockwaves through the St Louis housing market. After peaking however the rates have subsided, today dropping to 5.5%, the lowest rate since July 5th. This decline brings the mortgage rates down to the range they were I for most of May this year.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates

(click on chart for live, interactive chart)

Search St Louis Homes For Sale Search St Continue Reading →

Inventory Of Homes For Sale In St Louis Increases Year Over Year For First Time In Nearly Three-Years

By Dennis Norman, on July 21st, 2022

The inventory of homes for sale in the St Louis core market area increased to a 1.04 month supply in June 2022, an increase of nearly 12 percent (11.8%) from a year ago when there was a 0.93 month supply. As our chart below illustrates, this is the first time since August 2019 there has been a year-over-year increase in inventory and then the increase was just 3.1%. While a double-digit increase is significant, we do need to keep in mind that, at just over a one-month supply of listings for sale is still crazy low! The median listing supply Continue Reading →

National Headlines Say Homebuyers Canceling Deals At Highest Rate Since Start of Covid…Is this true in St Louis?

By Dennis Norman, on July 15th, 2022

If you’re heard it once, you’ve likely heard it a hundred times, “all real estate is local”. This is why you can’t put too much faith in national news or data if you are interested in buying or selling a home in St Louis. This is also why at MORE, REALTORS®, we put so much time, effort and money into producing the best and most accurate local data we can. We think it’s important to bring the data and information down to the local level.

“Homebuyers are canceling deals at highest rate since start of COVID” was the headline earlier Continue Reading →

St Louis Area Housing Market Report For June 2022

By Dennis Norman, on July 12th, 2022

St Louis Real Estate Report for June 2022

(click on infographic for complete report including other counties)

Showings Of St Louis Listings Fall To Levels Below January

By Dennis Norman, on July 6th, 2022

Mortgage Rates Fall Slightly to Lowest Level In Two Weeks

By Dennis Norman, on June 23rd, 2022

After hitting the highest rate in over 13 years just two weeks ago at 6.28%, as the chart below shows, mortgage interest rates on 30-year fixed mortgages declined today to 5.75%. The likelihood of interest staying under 6% is hard to to say at this time but I would say enjoy it while it lasts!

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates – 30 and 15-Year Conventional Loans, FHA Jumbo and and 5/1 ARM Loans Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Continue Reading →

Will Home Prices Come Crashing Down?

By Dennis Norman, on June 15th, 2022

After over 40 years in the real estate business in St Louis I’ve seen many times just how fast a good, or even great housing market can turn sour as well as the other way around. Two years ago, economic conditions relevant to the housing market included:

Interest rates in the 3’s Inflation rate under 2% The money supply increasing at a historically normal rate A steady and robust St Louis housing market

Today, the above conditions are:

Interest rates in the 6.25% – 6.5% range with the threat of increasing Inflation rate approaching 9% The money supply increasing nearly Continue Reading →

Mortgage Rates Hit Highest Level In Over 13 Years

By Dennis Norman, on June 14th, 2022

The bond market had one of the worst days in history yesterday resulting in mortgage interest rates on a 30-year fixed rate mortgage hitting 6.0% and above. This is the highest rates have been since November 20, 2008 when the mortgage interest rates were 6.04%, according to Freddie Mac’s Primary Mortgage Market Survey®.

Is there a silver-lining to the higher interest rates?

Given that the reason for the higher interest rates has to do with our high inflation rates and declining economic conditions, it’s hard to find much positive to say about what is happening. Having said that, the one Continue Reading →

Consumer Sentiment Toward Now Being A Good Time To Buy Hits Record Low

By Dennis Norman, on June 11th, 2022

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, 79% of the people surveyed said they felt now was a bad time to buy a home, which is the highest percentage of people feeling this way since the survey was begun in 2012. Seventeen percent of those surveyed felt it was a good time to buy a home and 4% didn’t know whether it was or not.

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St Louis Home Saw Second-Largest Decrease In Home Loan Originations Of Metro Areas In The U.S.

By Dennis Norman, on June 9th, 2022

There were 2.71 million home loan originations during the first quarter of this year in the U.S., according to the U.S. Residential Property Mortgage Origination Report from ATTOM. This is an 18% decline from the prior quarter, the largest quarterly decline since 2017 and marks the fourth straight quarterly decline in loan originations according to the report.

Refinancing saw a bigger decline than home purchases…

During the first quarter of this year there were 1,446,622 loans originated that were refinances of existing mortgages which is a decline of 21.7% from the prior quarter. There were 1,011,975 loans originated for home Continue Reading →

Mortgage Interest Rates Fall For Third Consecutive Week (albeit slightly)

By Dennis Norman, on June 7th, 2022

On May 12th the 30-year fixed rate mortgage interest rate hit 5.3%, the highest rates since June 2009, according to Freddie Mac’s Primary Mortgage Market Survey®. As the chart below illustrates, mortgage interest rate have declined the last three consecutive weeks falling to 5.09% at the end of last week, the lowest rate since April 14th when the average interest rate was 5.0%.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES Mortgage Interest Rates – 30 and 15-Year Conventional Loans and 5/1 ARM Loan

(click on chart for live, interactive chart)

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Mortgage Interest Rates Fall For Two Consecutive Weeks

By Dennis Norman, on May 27th, 2022

On May 12th the 30-year fixed rate mortgage interest rate hit 5.3%, the highest rates since June 2009, according to Freddie Mac’s Primary Mortgage Market Survey®. As the chart below illustrates, mortgage interest rate have declined the last two consecutive weeks falling to 5.10% yesterday, the lowest rate since April 28th.

There are more affordable options…

The chart I selected to show below also shows the mortgage interest rates for 15-year mortgages as well as something almost no one has had a reason to talk about for several years, adjustable rate mortgages (ARM’s). With mortgage interest rates as low as Continue Reading →

St Louis Home Sales Doing Well In Spite of Rising Interest Rates & Inflation

By Dennis Norman, on May 9th, 2022

There have been a lot of reports over the past month about rising interest rates (mortgage rates on a 30-year fixed-rate mortgage hit 5.27% last week) as well as rising inflation rates (8.5% in March) and the effect these things will have on the housing market. It’s no doubt they will have some affect on home prices and sales and I have been watching the data on St Louis home prices and sales closely and so far there does not appear to be much impact.

St Louis home sales increase in April from March…

There are two ways we analyze Continue Reading →

Sitzer vs NAR (National Association of REALTORS) – Good or bad for consumers?

By Dennis Norman, on April 28th, 2022

In an article published yesterday, I referenced the Sitzer vs National Association of REALTORS law suit and said I would have a more in-depth discussion about that suit and here it is. The lawsuit was filed by Joshua Sitzer, Amy Winger, Scott and Rhonda Burnett and Ryan Hendrickson on June 21, 2019 against the National Association of REALTORS® and the parent companies of major real estate companies and franchises including Coldwell Banker, ReMax, Keller Williams and Berkshire Hathaway Homeservices.

The Sitzer lawsuit was filed in the United States District Court for the Western District of Missouri sought to be certified Continue Reading →

Appellant Court Overturns Lower Court Dismissal of Anti-Trust Lawsuit Against the National Association of REALTORS®

By Dennis Norman, on April 27th, 2022

The past several days have not been good for the National Association of REALTORS® (NAR) from a legal perspective at least.

First, last Friday, April 22, 2022, Stephen R. Bough, a Federal Judge for in the Western District of Missouri, certified a lawsuit against NAR as a class action suit.The suit, known as the “Sitzer” suit as the original plaintiffs were Joshua Sitzer and Amy Winger, alleges that the defendant, the National Association of REALTORS® “created and implemented anticompetitive rules which require home sellers to pay commission to the broker representing the home buyer“. The plaintiffs in the suit also Continue Reading →

Missouri Releases Complaint Report For Missouri Insurance Companies

By Dennis Norman, on April 25th, 2022

The Missouri Department of Commerce and Insurance (DCI) is the state agency that investigates complaints against insurance companies made by consumers in Missouri. Annually, the DCI releases its complaint report reporting on the complaints made in the preceding year by company, type of insurance, etc. In compiling the report the DCI assigns a “complaint index” to each company, based upon the number of complaints the department received for a consecutive three-year period relative to the amount of product-specific premium a Missouri licensed company experienced that same period. An index number of 100 means that the department received the normally expected Continue Reading →

St Louis Area Housing Market Report For March 2022

By Dennis Norman, on April 18th, 2022

St Louis Real Estate Report for March 2022

(click on infographic for complete report including other counties)

Inflation Rate Increases to 8.5 Percent in March…What will the effect be on home prices?

By Dennis Norman, on April 14th, 2022

This week it was announced that the U.S. inflation rate in March had increased to a staggering 8.5% the highest rate in over 40 years as illustrated by the chart below. The last time the inflation rate was higher than this was in December 1981 when it hit 8.9%. The “inflation rate” that I’m referring to, and is the most commonly reported, is based upon the Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average. One of the categories included in the CPI-U is “shelter”. The report shows the shelter inflation rate at 5% which, on the Continue Reading →