St Louis Home Sales Trending Downward Last 12-Months- Not So In St Charles and Jefferson County

Given the impact of COVID-19 on the St Louis real estate market, particularly during the late winter/early spring months as well as a low-inventory market already, it should not come as a surprise that St Louis area home sales have trended downward somewhat during the past 12-months.  As our STL Market Report below shows, for the 5-county core St Louis real estate market, there were 26,723 homes sold during the 12-month period ended July 31, 2020, a decline of 0.88% from the prior 12-month period when there were 26,960 homes sold.  That very modest decline I think is actually very encouraging given what the market has been through with COVID-19.

St Louis 5-County Core Market Home Sales

St Louis 5-County Core Market Home Sales 



St Charles County and Jefferson County are the exceptions…

While the overall 5-county market was down, individually, the counties of St Charles and Jefferson have both fared better and, in fact, had modest increases in home sales during this period.  As the tables below show, there were 5,878 homes sold in St Charles county during the past 12-months, an increase of 1.08% from the prior 12 months.  In Jefferson County, there were 3,406 homes sold during the past 12-months, an increase of 0.53% from the prior 12-months.

St Charles County Home Sales

St Charles County Home Sales

Jefferson County Home SalesJefferson County Home Sales

 

Home Sales Data In St Louis Reveals The Impact Of COVID-19

After the COVID-19 pandemic hit St Louis and greatly curbed real estate activity back in March and April, the market was quick to recover and has come back in a pretty robust way. The impact is starting to show more though in home sales in the year-over-year and year to date numbers, however.  As our STL Market Report for the St Louis MSA below shows, for the 12-months ended June 30, 2020, there were 36,657 homes sold throughout the St Louis metro area, a decline of just over 1% from a year ago when there were 37,040 homes sold during the same period.

STL Market Report- St Louis MSA

(click on report for live, current report)

STL Market Report- St Louis MSA

St Louis Home Sales Trending Downward…

Continue reading “Home Sales Data In St Louis Reveals The Impact Of COVID-19

Have Home Prices Increased Too Much Too Fast? Is A Correction Coming?

Not only has it become common today for homes to sell as soon as they hit the market but receiving offers from multiple buyers and at prices that equal or even exceed the asking price is common as well.  While this is an illustration of Economics 101, the rule and supply and demand, when the demand exceeds the supply (such as in the housing market in many price ranges and areas), prices increase this can also be a reminder of times past when home prices rose quickly for several years, then retreated rather abruptly.  The most recent example of this, and arguably the worst during my 40 years in the real estate business, was the housing bubble that burst in 2008 sending home prices into a downward trend that lasted about 3 years.

So, are we headed to another housing bubble?

My focus is primarily on the St Louis housing market so I will focus on that but I will point out what I see with regard home prices, St Louis has a better outlook than at the national level.

New Sales Of Listings Last Week In St Charles County Up Over Thirty Percent From Last Year

COVID-19 who?  While it’s still around, it’s impact on the St Louis real estate market has dissipated to the point that we are seeing activity at levels higher than this time last year.  For example, as the report below shows, there were 1,245 new sales of residential listings in the St Louis MSA last week, an increase of 10 percent from the same time a year ago.  St Charles County was the county with the second-highest number of sales with 217 for the week which was a 32% increase from a year ago!  St Louis County, the county with the most home sales in the St Louis MSA had 435 sales, a slight increase above 432 a year ago.

New Contracts On Residential Listings – St Louis MSA

For the Week Ended June 13, 2020

New Contracts On Residential Listings - St Louis MSA 

Data Source: MARIS – Copyright 2020, MORE, REALTORS All Rights Reserved

St Louis Housing Market Stays Steady In Spite of COVID-19

The St Louis real estate market slowed when the effects of COVID-19 hit the St Louis area in early March but after continuing at a slower pace for a few weeks has quickly shifted gears to a faster pace.  The St Louis market has improved to the point that, for the 12-month period ended May 31, 2020, St Louis home sales were down just 1.84% from the prior 12-month period.  The median price of homes sold during the past 12-months was $213,000, an increase of 6.55% from the prior period.

St Louis 5-County Core Market Home Sales and Prices

Past 12 Months vs Year Ago

(click on the table below for live report)

St Louis 5-County Core Market Home Sales and Prices  Past 12 Months vs Year Ago

New Sales Of Residential Listings In St Louis In Past 7 Days Almost Back To Last Years Numbers

While COVID-19 has not released it’s grip on us, it has eased the grip and certainly, this is true with regard to the St Louis real estate market. As I’ve written about recently, showings of listings have increased to the point they have outpaced the same time as last year and now, the number of new contracts on listings is just about there as well!

As the table below shows, the number of new contracts on residential listings in the last 7 days that have been reported is, for the St Louis MSA, down just 3% from the same time last year and for the St Louis County Core market, down just 6%.  Jefferson County has actually seen sales that top the same period last year by 24%.

St Louis New Contracts On Residential Listings For The Past 7 Days

St Louis New Contracts On Residential Listings For The Past 7 Days

40 Zip Codes In The St Louis MSA Have 1 Month Or Less Supply Of Homes For Sale

It’s no wonder home buyers are tripping over themselves and getting into bidding wars to buy a house as the supply of homes for sale is at or near historic lows.  As our table below shows, there are currently 40 zip codes in the St Louis MSA with a one-month or less supply of homes for sale (7 of the zips have no homes for sale) and a total of 76 of the 127 (60%) zip codes within the St Louis MSA have a supply of homes for sale of 2 months or less.

This low inventory, along with low-interest rates and pent-up demand from the COVID-19 induced stay at home orders, is creating a real feeding frenzy of sorts for homebuyers in the St Louis market.  For sellers, this is a dream come true, plenty of demand and little competition!  Granted, this is not true in all areas and all price ranges, but for the most common prices ranges in the more popular areas it is very true.

Sellers should sell now!

If you are someone that has been thinking about selling, I would act on those thoughts now and take advantage of the current low-inventory conditions.  While I don’t know that I agree, there are folks out there predicting that the market is going to get flooded with homes for sale shortly turning the tide on sellers.  For me, I’ll believe that when I see it, but nonetheless, now is definitely a great time to sell.

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Continue reading “40 Zip Codes In The St Louis MSA Have 1 Month Or Less Supply Of Homes For Sale

More Showings of Listings In St Louis Last Week Than Year Ago

As the St Louis real estate market continues to distance itself from the effects of COVID-19 and the resulting stay at home orders and business shutdowns, I continue to see market activity that is encouraging.  For example, as the chart below shows, for the most recent week, reported (through last Thursday) the showing activity on listings in St Louis and surrounding areas were at a level that is 3.9% higher than for the same period last year. This is a huge rebound since showings hit bottom in the middle of the lock-down on April 9th and fell to a level that was barely half of the year before.

St Louis Area Showings Of Listings

(click on chart for live, interactive chart)

St Louis Area Showings Of Listings 

 

St Louis Real Estate Market Update VIDEO – May 2020

The St Louis real estate market continues to be on the upswing and recovering from the impact of COVID-19.   The pandemic did slow the St Louis real estate market down for a while but it appears to be recovering quite quickly.  Get all of this and more in this month’s update. Interest rates, the “cherry on top”.  In case the market rebound isn’t enough, mortgage interest rates are at near historic lows making now a great time, and an affordable time, to buy a house if you are in a position to do so.
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You can now subscribe to our ITUNES Podcast Channel to receive our updated market videos via podcast automatically each week! Just click here, then click on "Subscribe Free".) St Louis Real Estate Market Update Video - St Louis Home Prices

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St Louis Real Estate Market Continues To Rebound From The “COVID-19 Effect”

As the St Louis area slowly moves toward starting to come back to life, so to speak, the St Louis real estate market continues to heat up!  After getting a gut punch from the COVID-19 pandemic, which I now refer to as “The COVID-19 effect”, the St Louis market has been steadily making a come back. As the table below shows, the total number of new sales of residential listings last week for the St Louis MSA as a whole was down just 6% from the same time last year, and down just 10% for the 5-County core St Louis market.  In fact, Jefferson County and Franklin County both saw more sales last week than at the same time a year ago!

St Louis Area New Contracts On Residential ListingsSt Louis Area New Contracts On Residential Listings

Data source: MARIS – Copyright© 2020 St Louis Real Estate News, all rights reserved

 

 

St Louis Home Sales YTD On Pace With Last Year In Spite of COVID-19

Through the end of April, there have been 7,146 homes sold in the St Louis 5-County Core Market, nearly exactly the same as last year when there were 7,153 homes sold. In spite of the challenges caused by Covid-19, including the stay at home orders, over the past 7 weeks, the residential real estate market has managed to fare ok.

The trend is not looking so good though…

One thing to keep in mind is the date I just referenced is somewhat a historical look at the market since we are talking about closings of sales and not new sales.  For example, many of the closings that took place in April were likely sales that took place prior to when the “COVID-19 effect” started in St Louis, which was around March 10th.

The darker green line on the chart below reflects the home sales trend for the St Louis market, with each data point reflecting the prior 12-months home sales.  You will notice the trend line takes a significant drop in April.  If you look at last year, the trend line took a dip in April as well but had declined the month before also.  As I’ve reported over the past few weeks, new sales, while they have made a significant recovery, have been down as much as 35% or so from last year, so we’re likely to see the trend remain downward at least in the short term.

St Louis 5-County Core Market YTD Home Sales and Home Sales Trend For Past 25-Months

(Click on chart for live, interactive chart)
St Louis 5-County Core Market YTD Home Sales and Home Sales Trend For Past 25-Months

 

 

St Louis New Listings Down Nearly Double What Sales Are From Last Year

Prior to COVID-19, there had already been a shortage of residential listings for sale in many areas and price ranges through St Louis going back a couple of years.  However, the problem may be getting worse as we are continuing to see new sales of residential listings in St Louis picking up the pace to the point that they are down just 16% from the same time a year ago but, new listings in the St Louis MSA are down 30% from the same time a year ago.

Since we started with a low inventory and now have the sales rate outpacing the listing rate, we are probably going to see an even tighter supply of homes for sale for at least the near future.  As our table below shows, there are some areas where this is even more pronounced, such as St Charles County where the number of new sales of residential listings for the most recent 7-day period is down just 3% from a year ago but new listings during the same period are down 37%.

St Charles County down to less than 2-month supply

As our tables at the bottom shows, currently, there is just a 1.97 month supply of homes for sale in St Charles County and, if we look at the “sweet-spot” of homes priced in the $150,000 – $300,000 range, there is an inventory of just 1.04 months.  If you own a home in St Charles County and have thought about selling, contact us now and let us show you how to leverage this market in your favor whileit lasts.

Lincoln County Has Fastest-Selling Zip Code within the St Louis MSA

The average residential listing in the 63362 zip code area in Lincoln County, Missouri has been on the market for just 15 days, making 63362 the fastest-selling zip code within the St Louis MSA at this time.  As our table below shows, Lincoln County zips occupy two of the top spots with the 63379 zip code area in a three-way tie for  3rd on the list with listing having an average time on the market of 25 days.  So what’s up with Lincoln County?  Maybe with all this social-distancing going on people have decided to head to more sparsely populated areas making it easier, or perhaps have discovered they can move farther out and work remotely?

I’m not saying there aren’t other, non Covid-19 reasons, to move to Lincoln County such as the county seat for Lincoln County, Troy, Missouri.  Troy’s popularity has grown substantially with its population increasing about 28% in the past decade from 10,640 people ion 2010 to 13,600 currently while, during the same period, for example, the city of St Louis’ population declined 8% from 319,320 to 293,792.

St Louis MSAs Fastest-Selling Zip Codes

(click on table for a complete, current list)St Louis MSAs Fastest-Selling Zip Codes

St Louis Area Showings Of Listings On The Rise

Showings of real estate listings in St Louis fell dramatically after the COVID-19 outbreak and hit levels that were about half of what they were the same time last year during the first half of April.  Since hitting the low point on April 12th, showings have, as the chart below shows, increased sharply to the point where they are only down 15% from the same time last year.  Given that home buyers are much more open to virtual showings and hesitant to look at a home in person without thoroughly vetting it online, resulting in fewer showings per sale, this decline is really not bad at all.

St Louis metro area along with other markets served by MARIS

(click on chart for live, interactive chart)

St Louis metro area along with other markets served by MARIS

 

 

St Louis Home Sales On The Rebound In Spite of COVID-19

Maybe it’s the gorgeous weather, a more optimistic outlook after receiving stimulus payments or perhaps just being tired of waiting in limbo, but homebuyers have come out strong in St Louis during the past week!  St Louis home sales are still not at the levels we would expect at this time of year but, as my table below shows, for the St Louis MSA as a whole, the most recent 7-day period is down just 16% from the same time last year.  This is about half the decline I’ve seen when pulling the data as recently as a week ago.

St Charles County home sales have come back the strongest with 185 homes sold during the 7-day period from 4/14 through 4/21, just 12% less than the same period last year and the city of St Louis is next with a decline of just 14%.  Franklin County is struggling the most with just about half as many home sales as last year.

As I wrote yesterday, with low-interest rates and the buying opportunities out there, now is a great time to buy for those that are able.  Wow, now that I think about it, maybe that’s the reason home sales are increasing, people are listening to me LOL.

St Louis New Residential Home Sales April 14 – 21 – (Table)

St Louis New Residential Home Sales April 14 - 21 - (Table)

Date Source: MARIS – Copyright 2020 St Louis Real Estate News, all rights reserved

The COVID-19 Impact On The St Louis Real Estate Market – One Month In

The COVID-19 pandemic (coronavirus) began impacting the St Louis area just a little over a month ago and I’ve been tracking the impact on the St Louis real estate market along the way.  From the outset, we have seen a decline in the number of new listings, new sales and physical showings of listings, however, overall the decline has remained fairly constant.  New sales of listings for the St Louis area has pretty well hovered around a level equal to about tw0-thirds of the activity we saw at the same time last year.

Now that we are about a month into the “COVID-19 effect”, a few weeks into the stay at home orders and a few weeks into real estate agents adjusting to doing business in a different way, I wanted to take an in-depth look to see where we stand now.  I’ll warn you in advance, this article is a little long, mainly because of tables and data, but I wanted to include as much data as I could to paint the complete picture of the market.

St Louis Real Estate Market Update VIDEO – April 2020

The St Louis real estate market is off to a good start for 2020 however, it is getting impacted by COVID-19.   This month’s market update video includes market data through the end of March but, even though about 2/3 of March was after COVID-19 began disrupting things here, the effects really cannot be seen yet.  A couple of weeks ago I did a Special Report video that was specifically about the impact of coronavirus on the St Louis real estate market, but it won’t be until our May market report that we really see the full impact of it on the market. Rates are back down after a brief stint on the rise. The mortgage market is a little volatile now given all that is going on but, so far, so good.

In our MORE, REALTORS, 5 Minute St Louis Real Estate Market Update video below, you can quickly and easily get the latest information on home prices, home sales, trends and more for the entire St Louis area!  

Thinking of selling and want to know if your neighborhood is a seller's market? Contact us and we'll  answer that question for you.
You can now subscribe to our ITUNES Podcast Channel to receive our updated market videos via podcast automatically each week! Just click here, then click on "Subscribe Free".) St Louis Real Estate Market Update Video - St Louis Home Prices

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St Charles County Home Sales Down Just 25 Percent From Year Ago

Yesterday, I shared data showing that, in spite of the COVID-19 (coronavirus) pandemic,  new sales of residential listings in the 5-county core St Louis market for the most recent 7-day period that complete data is available for,  were down 35% from a year ago.  I received requests to break the data down further so I did so by county.  As the table below shows, for the 7-day period ended April 2nd, new sales of listings in St Charles County were down just 25% from the prior year.  The reason the period ends April 2nd is REALTORS® has 3 business days to report new sales to the MLS so that means the deadline for reporting a new sale on April 2nd was last night so this data should be very accurate.

St Louis New Sales Of Residential Listings

3/26/20 – 4/02/20 Vs. One-Year Ago

St Louis New Sales Of Residential Listings - 3/26/20 - 4/02/20 Vs. One-Year Ago
Data source: Mid-America Regional Information Systems, Inc. – Copyright 2020 -has St Louis Real Estate News

St Louis Home Sales Continue In Spite of COVID-19 Albeit at a lower level

As the COVID-19 (coronavirus) pandemic continues to keep many of us confined to our homes unless we need to go out for an essential service which, fortunately, the department of Homeland Security includes real estate in the definition, it is, of course, taking its toll on the St Louis real estate market.  As would be expected during a time like this, would-be homebuyers who have had their jobs or businesses impacted as a result of COVID-19 have pulled out of the market for now as have some folks who were considering a move purely for convenience or some other reason they feel will wait.

However, having said that, there still appear to be many serious homebuyers in the current market that want or need, to buy now.  This is evidenced by the most recent data I pulled below which shows new contracts on listings for the most recent 7 day period that have had contracts reported to the MLS.  So, to be clear, the “sales” I counted are residential listings that actually went under contract during the period,

As the table below shows, there were 994 new contracts on residential listings in the St Louis MSA during the past 7 days, a decline of 32% from the same time period a year ago.  There were 715 new contracts on residential listings in the St Louis 5-County Core market during the same period, a decline of 35% from the same period a year ago.

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St Louis New Contracts On Residential Listings For The 7 Day Period of 3/26 – 4/02

St Louis New Contracts On Residential Listings For The 7 Day Period of 3/26 - 4/02

COVID-19 has led to different methods of selling homes…

Today, real estate companies, like other businesses are trying to do business virtually and incorporating technology into their business more than ever before.  While some were already doing this, at least to some extent, it’s something that is new for many traditional “brick and mortar” type businesses.  (WARNING- SHAMELESS PLUG COMING) Doing business virtually isn’t anything new to our firm, MORE, REALTORS, or our agents as we have incorporated this into our business model for well over a decade.   It has caused us to switch into high gear to complete enhancements to our DOHR™ (Digital Open House Registration, U.S. Patent Pending) which include a totally virtual open house experience, a virtual showing experience as well as a hosted virtual tour experience. These are all things that will allow us to serve our seller clients by exposing their homes to the market, showing them to potential buyers while also protecting them and their families from exposure to the COVID-19 threat.

Sell Your Home For The Highest Price In The Least Amount of Time!  See how- STLSellersAdvantage.com 
Save Commission On Your Home Sale Without Sacrificing Service! See how- FairCommissionRates.com

  

 

 

Showings Of St Louis Area Listings Trending Upward

While, rightly so, health concerns remain on the minds of home buyers, sellers, and agents, with safety practices in place, the real estate market in St Louis still has activity.  Granted, as you would expect, the activity is at a reduced rate, but there are still people that want, or even need, to buy or sell a home.  In fact, the economic downturn as a result of the COVID-19 pandemic has put some additional pressure on sellers who have been negatively affected.

One of the things I’ve been watching to track activity in the market are showings of homes.  As the chart below shows, showings are down significantly from the same time last year (currently 42.8%) however, as the table below illustrates, the showing trend has increased over the past 3 days.  Showings hit bottom on March 28th when they were down 45.0% from a year ago and since then have regained some ground.  One thing to keep in mind is part of the decline is a result of “casual lookers” going by the wayside as the only people looking at homes today are serious home buyers.  In addition, alternatives to physical showings are  being developed to allow real estate transactions to continue with less physical contact between people.  For example, our firm, MORE, REALTORS, is launching a virtual open house online platform as well as a virtual showing online platform that will deliver an enjoyable, and safe, user experience for the buyer and will allow us to continue to safely serve sellers.

Showings of Listings In The St Louis MSA and Surround Area – Comparision to Last Year-Table

Showings of Listings In The St Louis MSA and Surround Area - Comparision to Last Year-Table

Showings of Listings In The St Louis MSA and Surround Area – Comparision to Last Year-Interactive Chart

(click on chart for live, up to date, interactive chart)

Showings of Listings In The St Louis MSA and Surround Area - Comparision to Last Year-Interactive Chart

 

 

Home Affordability In St Louis Improves In 2 Of Five Counties During 1st Quarter

Homes became more affordable in Jefferson County and St Charles County during the first quarter of this year from the 4th quarter of 2019, according to data just released by ATTOM Data Research.  As the table below shows, the affordability index for both those counties increased from the prior quarter as well as from the same quarter the prior year.  Franklin County’s affordability index was the same for the 1st quarter of 2020 as the prior quarter but improved by 5% from a year ago.  The two St Louis’s, the city and county, both saw decline in home affordability from both the prior quarter as well as the prior year.

Average wage earner can qualify to buy in 3 out of 5 Counties…

So while the city and county of St Louis saw a decline in home affordability, the average wage eaarner in those two areas can qualify to buy a home, as can an average wage earner in Franklin County.

St Louis Home Affordability – 1st Quarter 2020

St Louis Home Affordability - 1st Quarter 2020

New Sales Of Residential Listings In St Louis In Past 7 Days Down Just 14 Percent From Year Ago

As all of us continue to deal with a much different lifestyle as a result of the coronavirus pandemic (COVID-19) I am closely monitoring the St Louis real estate market to help get the most accurate information possible to our agents, clients, and consumers to help them make informed decisions about their real estate transactions.

With this in mind, I took a look at new contracts on listings for the past 7 days, so in other words, homes that actually went under contract during the period, but this time, I wanted to drill down deeper than I did a few days ago when I reported new contract activity.  This time I looked at just new sales of residential listings (homes, condos, villas, etc) rather than all property types in the MLS as other property types, such as commercial, land, and farms, for example, could be reacting differently.

As the table below shows, there were 1,142 new contracts on residential listings in the St Louis MSA during the past 7 days, a decline of just 14% from the same time period a year ago.  There were 836 new contracts on residential listings in the St Louis 5-County Core market during the same period, a decline of only 13% from the same period a year ago.

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St Louis New Contracts On Residential Listings For The Past 7 Days

St Louis New Contracts On Residential Listings For The Past 7 Days

A slower pace and different methods of selling homes…

As the data shows, COVID-19 is definitely having an effect on the St Louis real estate market in terms of a lower number of sales and, depending on how things go with containing the virus may bring sales down lower, but for now, the sales activity has been only modestly impacted.  Granted, with the threat of COVID-19  many changes are being implemented into the process but thus far everyone in the industry is working together well to take the necessary precautions to address the health concerns while still allowing people to conduct business.  For example, as much as can be done virtually or electronically is being done.

This is something our firm, MORE, REALTORS, has incorporated into our business model for well over a decade so for us and our agents, its a familiar and comfortable way for us to do business.  It has caused us to switch into high gear to complete enhancements to our DOHR™ (Digital Open House Registration, U.S. Patent Pending) which include a totally virtual open house experience, a virtual showing experience as well as a hosted virtual tour experience. These are all things that will allow us to serve our seller clients by exposing their homes to the market, showing them to potential buyers while also protecting them and their families from exposure to the COVID-19 threat.

Sell Your Home For The Highest Price In The Least Amount of Time!  See how- STLSellersAdvantage.com 
Save Commission On Your Home Sale Without Sacrificing Service! See how- FairCommissionRates.com

  

 

 

Showings Of Missouri Listings In Past 7 Days Down Nearly A Third From Last Year But Still Up 20 Percent From January

As the chart below from Showingtime illustrates, showings on real estate listings in Missouri were down nearly one-third (32.6%) from the same time last year.  However, as the chart depicts, for the 7 day period ending yesterday, March 22nd, the number of showings were nearly 20 percent  (19.6%) higher than during the first week of January this year.  Last year at this time, showings were up over 77 percent from the first week in January, so, as expected, we are seeing a decline in showings but, at this point, are still at a rate better than back in January.

The showing trend is downward so we’ll have to watch and see just how low it goes before it finds the bottom.

Impact of COVID-19 On Real Estate Showings In Missouri March 16 – March 22

(click on chart for live, interactive chart)

Impact of COVID-19 On Real Estate Showings In Missouri March 16 - March 22

 

Over Sixteen Hundred Listings Went Under Contract In Past Week In St Louis area MLS

As I mentioned in my article yesterday about the effect of the coronavirus on the St Louis real estate market, for those homebuyers in a position to buy a home, there will be some good opportunities presented. Apparently, there are buyers out there that perhaps feel the same way or, they at least are not uncomfortable with buying now as, in the past 7 days, 1,670 listings in MARIS, the regional MLS that serves the St Louis area as well as some additional areas outside the metro area, went under contract.  When pulling data from our database for this, I confirmed that prior to the listing’s status changing to Active Under Contract or Pending (both are statuses indicating they are now under contract) the prior status in the MLS was Active thereby verifying these are “new” sales.

The 1,670 sales in the past 7 days is just sligthly lower than the 1,835 listings that went under contract during the same period a year ago.

Now, if the President or the Governor put us under a “Shelter in Place” order or something similar that effectively shuts down everything, that will pretty well put a bullet in new home sales for a while.  Depending on which “latest report” you believe, that either will or won’t happen.

Stay safe and healthy!

 

St Louis Real Estate Market Update VIDEO – March 2020 – 2020 off to a better start than last year…so far

The St Louis real estate market is off to a great start for 2020!  Home sales year to date has outpaced sales from the same time a year ago and everything points to 2020 being a good year for real estate!  The $64 question is, however, what effect the Coronavirus may have on the market.  Only time will tell, but my thoughts are that while there will no doubt be some negative impact on the St Louis housing market as a result of Coronavirus (COVID-19) its impact will be much less than what we have seen of late in the stock market.

I don’t believe we will see any sort of significant decline in home prices but we will likely see a “pause” in sales as some buyers decide to wait and see how things go.  No doubt some of the potential buyers that will be affected are those whose jobs or income are impacted as a result of Coronavirus, such as people in the travel, hospitality, sports, and entertainment industries.

Rates jumped up last week but are still attractive. The week before last, St Louis mortgage interest rates hit an all-time low as buyers were locking in interest rates on a 30-year fixed-rate mortgage as low as 2.95%! This past week, however, that changed and the rates shot up by as much as 1% and not as a result of the stock market or coronavirus as much as from just too much demand.  Apparently the investors that purchase the loans from lenders around the country got overwhelmed as the volume set record highs so they raised rates.  Even with the increase, rates are still historically good.  

In our MORE, REALTORS, 5 Minute St Louis Real Estate Market Update video below, you can quickly and easily get the latest information on home prices, home sales, trends and more for the entire St Louis area!  

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Payments On Typical St Charles County Home Over 13 Percent Cheaper Today Than Year Ago

The typical median-priced existing home sold for $233,000 in February 2019 and a year later, as the chart below shows, in February 2020 the typical median-priced home sold for $235,000, an increase of just under 1%.  Here’s the beauty though, thanks to interest rates dropping from an average of 4.41% a year ago to 3.29% today, even with the slight increase in price, the typical St Charles County home costs less today than a year ago!  Not just by a little either as the payment on the median price a year ago (no money down) would have been $1,178.18 at the current rates at the time, the payment today, at the higher price but lower rates would be just $1,019.15, a savings of $159.03/month or 13.5%!  Oh, and just to show the “compound effect” of this, over the life of the loan, you will save $55,249 in interest.

So, what are you waiting for?  Buy a house!

St Charles County Existing Home Sales – Past 13 Months

(click on chart for live-interactive chart)

St Charles County Existing Home Sales - Past 13 Months

St Louis’ Fastest Selling Zip Codes

It may still be winter, which most people know is the “slow-season” for real estate, however, there are still plenty of areas in St Louis where homes are selling fast!  Below is the list of the fastest-selling zip codes (only available from MORE, REALTORS on their St Louis Real Estate Search® site, which reveals the 63144 zip code in St Louis county as the fastest-selling zip with an average time of just 21 days on the market for active listings.  The second zip on the list, and just a day behind the average for the Brentwood area of 63144, si the Jefferson County zip of 63012 which includes Pevely, Barnhart, Otto, and Imperial, MO.

St Louis’ Fastest-Selling Zip Codes

(based on the average time of market of active listings – click table for current, complete list)

St Louis' Fastest-Selling Zip Codes

Home Sales In St Louis 5-County Core Market Have Trended Upward Last 3 Years – Time To Sale Rises Sharply

Home sales in St Louis have trended upward over the past 3 years with 25,450 homes sold during 2017 (non-distressed sales only), 25,804 during 2018 and  25,962 homes during 2019.  As the chart below shows, the days on market (time to sell a home) was 19 days in 2017, declined to 17 days in 2018 and then jumped sharply to 32 days during 2019.  The bottom chart shows data for the past 12-months and, as it reveals, the time to sell a home has continued to upward during 2020 thus far with the time in January rising to 47 days.

St Louis 5-County Core Market -Home Sales and Time To Sell – 2017 – 2019

(click on chart for live, interactive chart)

St Louis 5-County Core Market -Home Sales and Time To Sell - 2017 - 2019

St Louis 5-County Core Market – Home Sales and Time To Sell – Past 12-Months

(click on chart for live, interactive chart)St Louis 5-County Core Market - Home Sales and Time To Sell - Past 12-Months (no-distressed)

St Louis Metro Area Home Sales Increase Nearly 2 Percent In Past 12 Months

There were 35,702 homes sold in the St Louis metro area in the 12-month period ended January 31, 2020, an increase of nearly 2 percent (1.97%) from the prior 12-month period when there were 35,013 homes sold.  As MORE, RELATORS exclusive STL Market Report below shows, the median price of homes sold in St Louis during the most recent period was $195,000, an increase of 4 percent from the prior 12-month period.

Home Sales  St Louis MSA – Past 12 Months vs Prior 12 Months

(click on table for current report)

Home Sales  St Louis MSA – Past 12 Months vs Prior 12 Months

Distressed Home Sales In St Louis MSA Fall Nearly 25 Percent In Past 12 Months

Thanks to a booming economy and strong housing market, distressed home sales in the St Louis Metro Area declined by nearly 25 percent (23.42%) in the 12-month period ended January 31, 2020 from the prior 12-month period. As our exclusive, STL Market Report below shows, there were 1,887 distressed home sales (foreclosures, REO’s and short sales)in the most recent 12-month period compared with 2,464 in the prior 12-month period.  The median home price of the distressed homes sold declined 1.79% during the same period, from a median price of $56,000 in the prior period to $55,000 in the most recent period.

  

Distressed Home Sales  St Louis MSA

(Foreclosures-REO’s-Short Sales) – Past 12 Months vs Prior 12 Months

(click on table for current report)

Distressed Home Sales  St Louis MSA