Real Estate Market - St Louis Real Estate News

How to Successfully Negotiate Below Asking Price in St. Louis’ Competitive Market

By Dennis Norman, on June 12th, 2024

Navigating the competitive St. Louis real estate market, where inventory remains relatively low, requires strategic thinking and a well-crafted offer. While it’s possible to make an offer below the asking price, success hinges on several factors where the expertise of a seasoned professional agent, like those at MORE, REALTORS®, can be invaluable.

First, the amount of time a listing has been on the market is crucial. Properties that have lingered longer are often ripe for negotiation. A well-priced home will see significant activity, so an experienced agent can help you gauge the market response and determine a reasonable offer. Additionally, Continue Reading →

Why Exposing Your Home to the Market Yields the Best Financial Outcome

By Ted Gottlieb, on June 10th, 2024

Selling a home is a significant financial decision, especially for older adults who often have a substantial portion of their assets tied up in their home’s equity. While the idea of a quick sale to an investor might seem appealing, it rarely maximizes the financial potential of your property. Here’s why exposing your home to the market is the best strategy for securing the highest possible price, even if selling “as-is.”

The Drawbacks of Selling to an Investor

Lower Offers Real estate investors typically seek properties they can buy at a discount, make necessary improvements, and then sell for a Continue Reading →

The Challenges and Market Impact on Brentwood Forest Condos

By Dennis Norman, on June 7th, 2024

Brentwood Forest Condominiums, one of St. Louis’ largest condo communities, is currently grappling with significant structural repair issues that have cast a shadow over the market’s viability. Following the revelation of maintenance problems, the Federal Housing Administration (FHA) temporarily withdrew its loan approval for the development. This decision has significantly impacted both the homeowners and prospective buyers. In a recent article in the St. Louis Business Journal, it was stated that in response to this, the Brentwood Forest Condominium Association (BFCA) was “working diligently to address reported mortgage lending issues.”

The structural issues and subsequent lending restrictions have had a Continue Reading →

Maximizing Home Sale Value for Seniors: A Comprehensive Guide

By Ted Gottlieb, on June 6th, 2024

Selling a home, especially for seniors, can be an emotional and complex process. Whether the decision stems from downsizing, moving to an assisted living community, or addressing economic security concerns, ensuring the home sells for its maximum value is crucial. Here’s how to achieve that, regardless of the home’s condition, without resorting to real estate investors who more often than not offer the best price.

Understanding the Motivation

Firstly, it’s essential to recognize why the sale is happening. Common reasons include:

Downsizing for seniors to a more manageable living space. Transitioning to a senior apartment or assisted living community. Financial Continue Reading →

Affordable Homeownership: How House Hacking Helps First-Time Buyers in St. Louis

By Dennis Norman, on May 28th, 2024

House hacking is becoming an increasingly popular strategy among younger and first-time homebuyers in many parts of the country, including the St. Louis Metro Area. What is house hacking? Essentially, it involves purchasing a multi-unit property or a single-family home with rentable spaces, offering the new homeowner the opportunity to offset their mortgage payments with rental income. This approach not only reduces living expenses but also helps build equity faster and generate additional income streams.

House hacking offers numerous benefits, particularly in a market like St. Louis where property values are competitive and rental demand is strong. For first-time homebuyers, Continue Reading →

May 2024 Housing Market: Homeowners Locked in by Low Mortgage Rates

By Dennis Norman, on May 22nd, 2024

The Freddie Mac U.S. Economic Housing and Mortgage Market Outlook for May 2024 reveals significant insights into how mortgage interest rates are impacting the housing market, particularly across different generations. With the 30-year fixed-rate mortgage recently surpassing 7%, many prospective homebuyers find themselves priced out of the market. At the same time, current homeowners are hesitant to sell, clinging to historically low rates secured in 2020 and 2021. According to Freddie Mac’s chart below, over 60% of mortgages have rates below 4%, creating a substantial financial disincentive for homeowners to move, effectively locking them into their current homes. Homeowners who Continue Reading →

Discover the Hottest Zip Codes in St. Louis Metro Area for Home Buyers and Sellers

By Dennis Norman, on May 18th, 2024

Are you looking to buy or sell a home in the St. Louis metropolitan area? Look no further! According to recent data, the fastest selling zip code in the area is 62084 in Madison-IL, IL. With an average of only 3 days on the market, homes in this zip code are in high demand. And with an average list price of $187,375, sellers can expect to get top dollar for their properties.

But that’s not all. The second and third fastest selling districts in the St. Louis metro area are also located in Madison-IL, IL and St Clair-IL, IL, respectively. Continue Reading →

Discover the Top 3 Fastest Selling School Districts in St. Louis!

By Dennis Norman, on May 16th, 2024

Attention all home buyers and sellers in the St. Louis metropolitan area! Are you looking for a quick and seamless real estate experience? Look no further than the top three fastest selling school districts in the region. According to recent data, Freeburg DIST 70 in Illinois takes the top spot with an impressive average of only 12 days on the market for its two active listings, with an average list price of $344,000. Coming in at a close second is Windsor C-1 in Unincorporated, MO, with six listings and an average of just 15 days on the market. And rounding Continue Reading →

St. Louis Real Estate Set for a Comeback: Insights from NAR Chief Economist Lawrence Yun

By Dennis Norman, on May 8th, 2024

Lawrence Yun, Chief Economist for the National Association of REALTORS

In his forecast yesterday at the 2024 REALTORS® Legislative Meetings, National Association of Realtors® Chief Economist Lawrence Yun delivered a promising outlook for the real estate market with expectations for rising existing-home sales. According to Yun, the U.S. is likely to see existing-home sales increase to 4.46 million in 2024, a 9% rise from 2023, and surge to 5.05 million in 2025. Yun highlighted, “More jobs mean more home sales and higher housing demand. You need a strong local economy for a strong housing market.”

Additionally, Continue Reading →

Lease Options: An Innovative Path to Home Ownership

By Dennis Norman, on April 27th, 2024

In today’s real estate market, characterized by low inventory and somewhat high interest rates, the idea of buying a home can be daunting for some, especially those who are undecided about their long-term plans. Lease options present a compelling solution, offering flexibility and a strategic stepping stone toward owning a home. This approach is ideal for individuals who are still considering their options in terms of location, saving for a substantial down payment, or waiting for potentially lower interest rates.

A lease option allows tenants to live in a property with the option to purchase it at the end of Continue Reading →

Missouri Homeowners Insurance Holds Steady Amid National Crisis Concerns

By Dennis Norman, on April 18th, 2024

The St. Louis Business Journal today published an article with the headline “A hidden cost of homeownership is mounting — and approaching crisis levels”. The article began with “homeowners across the country are facing an insurance crisis — and it’s driving up housing costs”, and then quoted a study indicating that 72% of U.S. homeowners said the cost of their homeowners insurance had increased over the past year. Well, sometimes it’s better to not have ocean views, mountains, and the like, and to be situated in the middle of the country like we are here in St. Louis—and this would Continue Reading →

Steady Increase in Commercial Real Estate Foreclosures Over the Past Year

By Dennis Norman, on April 17th, 2024

Based on the data from the recent ATTOM report on U.S. commercial foreclosures, there is a noticeable trend that highlights the challenges and changes in the commercial real estate market over the past decade. The report indicates a significant increase in commercial foreclosures, rising to 625 in March 2024 from a low of 141 in May 2020—a time characterized by pandemic-induced economic shocks and responsive fiscal interventions. This sharp rise represents a 117% year-over-year increase and underscores a broader economic narrative where, despite short-term stabilizations, long-term market corrections have been a constant presence.

States like California, New York, and Florida Continue Reading →

Slowest Selling Zip Codes in the St. Louis Metro Area

By Dennis Norman, on April 16th, 2024

The St. Louis Metro area (MSA), which spans parts of Missouri and Illinois, has a diverse real estate market with some zip codes seeing properties sell slower than others in spite of the low-inventory market we are in. Based upon the report below, available exclusively from MORE, REALTORS®, the slowest selling zip code in the St Louis metro area is 63131 in St Louis County, Missouri where the current average days on market for active listings is a whopping 201 days. Next is 62249 in Madison County Illinois with an average of 152 days on the market.Notably, 8 of Continue Reading →

Will the NAR Commission Lawsuit Settlement Change Real Estate Practices in St. Louis?

By Dennis Norman, on April 16th, 2024

Since the National Association of Realtors (NAR) and the plaintiffs in the following lawsuits—Christopher Moehrl v. The National Association of Realtors et al., Rhonda Burnett (originally Sitzer) v. The National Association of Realtors et al., Dawin Niel Umpa v. The National Association of Realtors, et al., and Don Gibson v. The National Association of Realtors—reached a settlement agreement on March 15, 2024, which is still pending court approval and thus preliminary at this point, the topic has dominated industry conversations. The focus of these lawsuits on buyer’s agent commissions has attracted more media attention since mid-March than it seems to Continue Reading →

Supreme Court Affirms Property Rights in SHEETZ v. COUNTY OF EL DORADO

By Dennis Norman, on April 16th, 2024

The Supreme Court has rendered a unanimous decision in the landmark case SHEETZ v. COUNTY OF EL DORADO, involving petitioner George Sheetz and the imposition of a traffic impact fee by El Dorado County, California. The key points of the decision are as follows:

Background: George Sheetz was mandated to pay a $23,420 traffic impact fee as a condition for obtaining a residential building permit, which he contested as an unlawful exaction under the Takings Clause.

Court’s Decision: The Supreme Court, in an opinion delivered by Justice Barrett, vacated the ruling of the California Court of Appeal. The decision clarified Continue Reading →

Refinance Activity Surges Despite Rising Mortgage Rates – Purchase Applications Fall

By Dennis Norman, on April 11th, 2024

Last week, the interest rates for 30-year fixed-rate mortgages climbed past the 7 percent mark. Despite this increase, as the chart below illustrates, there was a significant 10 percent increase in refinancing applications. This is in sharp contrast to a 5 percent decline in purchase applications. The growth in the refinancing segment is notable, representing 33.3 percent of the total application volume, up from 30.3 percent the previous week. This surge in refinancing interest is particularly intriguing, given the highest reported 30-year mortgage rates in over a month, at 7.01 percent.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, Continue Reading →

Interest Rate Insights: Traci Everman Unveils the Latest Shifts

By Dennis Norman, on April 10th, 2024

The ebb and flow of St. Louis’s real estate market are linked to the broader economic currents, and recent weeks have witnessed a significant uptick in mortgage interest rates. In the video below, Traci Everman, Senior Mortgage Banker with Flat Branch Home Loans, does a fantastic job of explaining what is happening and why. Below the video are some highlights and a recap.

See Current (and historical) Mortgage Rates Get a REAL Pre-Approval Now

Here are are few highlights of what Traci’s covers in the video:

Recent Economic Impacts on Mortgage Rates:

Economic reports released over the Continue Reading →

St. Louis Area Residential Real Estate Market Report For March 2024

By Dennis Norman, on April 10th, 2024

The St. Louis MSA residential real estate market is experiencing a phase of transformation. While the sales volume has seen a downturn, median sale prices have held steady, indicating a resilient market underpinned by solid demand. The complete STL Market Reports for the entire metro area as a whole, as well as the major counties, are available exclusively from MORE, REALTORS® and are below.

Key Findings:

Sales Volume Decline: The St. Louis MSA experienced a 9.30% decrease in the number of homes sold during the 12-month period ending March 31, 2024, compared to the previous year. Median Sold Price Growth: Continue Reading →

Will MLS Access Be Untethered from REALTOR Membership?

By Dennis Norman, on April 10th, 2024

In the wake of recent legal developments, including a proposed settlement by the National Association of Realtors (NAR) in March addressing buyer agent commissions, the real estate industry finds itself at another critical juncture. This time, attention turns to a lawsuit spotlighted in my article from a week ago, “New Lawsuit Against NAR Spotlights Tying of MLS Access to Realtor Membership in Ongoing Commission Debate“, which challenges the longstanding practice of tying MLS access to Realtor association membership. Unlike the NAR settlement that focused on commission structures, this new legal action delves into the exclusivity of market information access, a Continue Reading →

DOJ Delivers Regulatory Blow to NAR: Court Reopens Antitrust Investigation

By Dennis Norman, on April 6th, 2024

In a significant turn of events that has captured the attention of homebuyers, homesellers, and real estate professionals nationwide, the United States Court of Appeals for the District of Columbia Circuit has delivered a landmark judgment that underscores the intricate balance between regulatory oversight and the operational freedoms of real estate associations. This case, National Association of Realtors (NAR) versus United States of America, et al., centers on the alleged anticompetitive practices within the real estate industry, specifically scrutinizing the policies implemented by NAR.

The Department of Justice (DOJ), through its Antitrust Division, initiated an investigation into NAR’s policies, Continue Reading →

New Lawsuit Against NAR Spotlights Tying of MLS Access to Realtor Membership in Ongoing Commission Debate

By Dennis Norman, on April 3rd, 2024

In the evolving landscape of real estate litigation, a fresh lawsuit filed by homeowner Hao Zhe Wang against the National Association of Realtors (NAR) and several major real estate brokerage firms introduces a nuanced critique of industry practices. Distinguishing itself from prior actions, this case zeroes in on the contentious policy requiring real estate agents to be NAR members in order to access Multiple Listing Services (MLS), a stipulation the plaintiff contends unfairly influences commission structures and inflates transaction costs.

The Core Allegations:

At the heart of Wang’s lawsuit is an objection to how MLS access — a critical Continue Reading →

Fastest Selling Zip Codes in the St. Louis Metro Area

By Dennis Norman, on April 2nd, 2024

The St. Louis Metro area (MSA), which spans parts of Missouri and Illinois, has a diverse real estate market with some zip codes seeing properties sell much faster than others. Based upon the report below, available exclusively from MORE, REALTORS® , the fastest selling zip code in the area is 63070 in Jefferson County, Missouri where the current average days on market for active listings is just 12 days. Close behind in second place is 63040 in St. Louis County with 9 listings averaging 15 DOM. Rounding out the top five are 63134 (St. Louis County, 16 DOM), 63038 Continue Reading →

St. Louis 2024 Housing Market: First Quarter Update

By Dennis Norman, on March 29th, 2024

As we close the first quarter of 2024, it’s an opportune moment to revisit the forecasts I made at the end of last year regarding the St. Louis real estate market. With the data from January through March now available, we can assess the accuracy of the initial predictions and adjust our outlook for the remainder of the year.

Scorecard on December Predictions:

2024 Home Sales Forecast: I projected a slight decrease in the annual sales volume to about 22,400 homes. The data from the first quarter shows a varied trend with the 12-month home sales at the end of Continue Reading →

Court Battle Pits Consumer Savings Against DOJ Objections

By Dennis Norman, on March 29th, 2024

The Council of Multiple Listing Services (CMLS), representing over 200 Multiple Listing Services nationwide, has filed a brief supporting the settlement reached between the parties in the lawsuit against MLS Property Information Network (MLS PIN). While this is not the settlement announced last week by the National Association of REALTORS® (NAR), it involves one of the several lawsuits tied to the NAR settlement.

CMLS filed their brief in response to the one filed by the Department of Justice (DOJ) in February, which opposed the MLS PIN settlement, arguing that it did not go far enough to change Continue Reading →

NAR and MBA Seek Assurance from Fannie Mae and HUD on Commission Practices to Protect Homebuyers

By Dennis Norman, on March 29th, 2024

One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.

In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.

What does this mean for homebuyers? Under the Continue Reading →

St. Louis Metro Real Estate Market: Interpreting the Current Trends

By Dennis Norman, on March 27th, 2024

The St. Louis Metro residential real estate market in 2024 is showcasing diverse trends, indicating an evolving landscape for buyers, sellers, and industry professionals. The latest data, detailed in the STL Market Report exclusively from MORE, REALTORS®, offers a snapshot of these dynamics.

Contrasting Sales Trends:

There’s a notable decrease in home sales volume by 16.11% in the past year, with figures declining from 38,173 to 32,022 homes sold.

Home Value Resilience:

Despite the lower sales volume, median sold prices in the metro area nudged upward by 2.44%, moving from $246,000 to $252,000 year-over-year.

Price Per Square Foot (PPSF) Analysis:

Continue Reading →

Important Alert for St. Louis Home Sellers: Are You Eligible for a Settlement Claim in the Recent NAR Antitrust Litigation?

By Dennis Norman, on March 26th, 2024

Previously, I wrote about the settlement reached by the National Association of Realtors (NAR) aiming to resolve litigation concerning alleged anticompetitive practices, potentially leading to financial compensation for certain home sellers in St. Louis and beyond. This litigation, which centers on claims of inflated commission rates, could see a transformative resolution pending court approval expected by summer. If approved by the court, this settlement, alongside those reached with other corporate defendants like RE/MAX, Keller Williams, Realogy, and Compass, would provide eligible home sellers a pathway to claim financial redress for the commissions paid during the specified periods. Search St Louis Continue Reading →

Real Estate Commissions: Beyond the Headlines and Hype – What You Need to Know Now

By John Donati, on March 24th, 2024

You’ve probably heard about these changes happening with real estate commissions, right? It’s been all over the news lately. You might have seen headlines like “Real estate commissions are being slashed!” or “Selling your house will now be less expensive!” Sounds pretty exciting, doesn’t it? And the media has a great track record, right? Let me tell you, there’s a lot more to it than meets the eye.

Even the most informed of us agents and brokers out here are scratching our heads because the lawsuit changed gears so quickly. Nobody really knows exactly how it’s all going to work Continue Reading →

NAR’s $418 Million Antitrust Settlement: Will It Face the Same DOJ Scrutiny as MLS PIN Deal?

By Dennis Norman, on March 20th, 2024

Legal Counsel Behind Billion-Dollar Verdict Vows to Enforce NAR Settlement Strictly

Last week, I wrote an article about the settlement reached by the National Association of REALTORS® in pending litigation concerning buyer agency compensation. This includes the “Sitzer” (now Burnett), “Moehrl,” and “MLS PIN” suits, among others. As mentioned, this is an early stage in the process; the settlement agreement, although agreed upon by the parties involved, has not yet been filed with the court. Given these are large class action lawsuits alleging antitrust violations, numerous hurdles must be overcome. These could necessitate changes to the settlement terms on the path to court approval—if the court approves it at all.

Hurdles Continue Reading →

Demystifying Aluminum Wiring for Homebuyers: Insights from Industry Expert Mike Ragan

By John Donati, on March 18th, 2024

In a recent informative video, Mike Ragan, a master electrician, and owner of R&M Electric in St. Charles MO, dispels several myths surrounding aluminum wiring, a subject that often causes apprehension among prospective homebuyers in the St. Louis area. With over 18 years of experience specializing in residential wiring and troubleshooting, Ragan brings a wealth of knowledge to the discussion. He offers crucial insights for anyone considering the purchase of a home equipped with aluminum wiring, providing a fresh perspective on what has traditionally been viewed as a potential dealbreaker. Continue Reading →