St Louis Rental Vacancy Rate In 2018 Hits Lowest Level In Over 13 Years

The median rental vacancy rate for the St Louis metro area during 2018 was 6.8%, according to data recently released by the U.S. Census Bureau.  This rate marks the lowest annual median rental vacancy rate for St Louis since the U.S. Census Bureau’s reports which began in 2005.

As the table below shows, the vacancy rate for the 4th quarter of 2018 was 6.6%, down from 6.9% the quarter before and down from 9.2% a year ago.

St Louis Rental Vacancy Rates

St Louis Rental Vacancy Rates

 

Number Of St Louis Home Flips Declines in 2018 From Year Before

There were 3,143 home “flips” in the St Louis metro area during 2018, according to data just released by ATTOM Data Research.  With 7.4% of homes sold in St Louis being a flip in 2018, this is a decline of 3.7% from a year ago.  The peak number of flips in St Louis came in 2005 when there were 4,426 homes flipped.

What is meant by “flipped” home?

ATTOM Data considers any home or condo that was sold during the third quarter of this year in an arms-length sale that had previously had an arms-length sale within the prior 12 months as well as a “flip”.  Since homeowners don’t tend to buy a home only to turn around and resell it within a year, when this does occur it is typically the result of an investor buying a property, renovating it, then reselling it.

  

St Louis House Flips 2018

St Louis House Flips 2018

St Louis House Flips Average Gross Profit

St Louis House Flips Average Gross Profit

 

 

 

Jefferson County Had The Highest Foreclosure Filing Per Capita Rate Of Larger Missouri Counties in 2018

Jefferson County, with an estimated population of 221,577 during 2018, had 317 foreclosure filings during 2018, giving it the highest rate of foreclosure filings per capita, at 1 foreclosure filing for every 699 in population, of the all the Missouri counties with a population of 50,000 or greater.  As the table below shows, the three Missouri counties with the highest foreclosure rate per capita are all located within the St Louis MSA and Boone County, in the Columia MSA, has the lowest foreclosure rate in the State.

  

 

2018 Missouri Foreclosure Rates By County

2018 Missouri Foreclosure Rates By County

Copyright© 2019 – St Louis Real Estate News – All Rights Reserved – Data Source ATTOM Data Solutions

St Louis MSA Has 8th Highest Foreclosure Rate Among Largest Metro Areas

Yesterday, I wrote an article about the number of foreclosures in St Louis during 2018 dropping to the lowest number in over 12 years, however, in spite of that good news, St Louis still has the 8th highest rate of foreclosure among the 20 largest metro areas in the U.S.

According to data just released by ATTOM Data Research, as the table below shows, during 2018 St Louis had a foreclosure filing for 1 of every 180 housing units.  This rate puts St Louis at the 65th highest rate of the 219 MSA’s in the U.S. with a population of over 200,000 and at the 8th highest rate of the 20 largest MSA’s.  Worth noting is St Louis barely made the list of 20 largest MSA’s coming in at 19th largest based upon population.

  

Number Of Foreclosures in St Louis During 2018 Drops To Lowest Number In Over 12 Years

As evidence of just how much the St Louis housing market has improved since the housing bubble burst a little over a decade ago, as well as a testimony as to the strength of our economy, the number of St Lous homeowners that lost their homes to foreclosure last year dropped to the lowest level in over 12 years.

As the tables below show, during 2018, 6,882 homeowners in the St Louis metro area received a notice of a foreclosure filing from their lender on their property, a decline of 6% from the prior year when 7,323 homeowners received a foreclosing filing notice.   The number of foreclosure filings in St Loius during 2018 was down 68.3% from 2010 when the number of foreclosures in St Louis hit a record high with 21,741 homeowners receiving a foreclosure filing notice.

  

Mortgage Delinquency Rates Continue to Improve-St Louis Distressed Home Sales Falling

Mortgage delinquency rates, the precursor to foreclosures, continue to fall as the real estate market continues to perform well.  The 30-plus day mortgage delinquency rate for June 2018 fell to 4.3% of all outstanding mortgages down from 4.6% a year ago, according to a report just released by CoreLogic.  Frank Nothaft, the Chief Economist for CoreLogic, attributed the good news to “A solid labor market” going on to say that June’s national unemployment rate of 4% was “the lowest for June in 18 years“.

St Louis distressed home sales falling quickly…

With the economy and real estate market doing so well, distressed home sales (short-sales and foreclosures) continue to decline.  As our chart below shows, the 12-month trend line for distressed home sales in the 5-County core St Louis market (city of St Louis and the counties of St Louis, St Charles, Jefferson, and Franklin)  fell to 1,137 sales for the 12-month period ending August 2018.  This is a decline of 30% in distressed home sales in St Louis, from a year ago when there were 1,632 distressed home sales during the prior 12-month period.

  

St Louis Distressed Home Sales -12 Month Trend – Past 24 Months

(Click on chart for live chart)

St Louis Distressed Home Sales -12 Month Trend - Past 24 Months

 

 

 

House Flipping In St Louis Drops Twenty-Three Percent In 2nd Quarter

House flipping, something that has become quite popular among investors over the past few years and has even spawned several reality TV shows, continues to decline in terms of the number of flips.  This is certainly not due to a lack of interest but instead a lack of opportunities.  Many flipping opportunities are the result of foreclosures and with the mortgage delinquency rates continuing to improve resulting in declining foreclosure rates, the end result is few opportunities for investors to flip homes.

In St Louis, during the 2nd quarter of 2018, there were 835 homes flipped in the St Louis metro area, a decline of 23.0% from the quarter before and a 4.7% decline from a year ago.  This is down 32.5% from the peak during the 3rd quarter of 2005 when there were 1,237 homes flipped in St Louis.

The table below shows the 2nd quarter house flipping data for St Louis, from ATTOM Data Services and includes the median size and age of the homes flipped, as well as median time to flip,  prices and profits.

  

St Louis House Flips – 2nd Quarter 2018

St Louis House Flips - 2nd Quarter 2018

Distressed Sale Opportunities For Investors Declined 30 Percent In Past 12-Months

As the interest in investing in real estate in St Louis continues to increase, whether to buy, fix and flip or to buy and hold for rental, the number of opportunities to do so continues to decline.  The primary source of “deals” for investors is typically “distressed” sales; property that has been foreclosed on and being resold, short sales or property in poor condition needing work.  However, as our chart for St Louis MSA below reveals, the number of distressed home sales in St Louis has been steadily declining over the past 5 years.

The chart shows both the number of distressed sales for each month (the pink line) as well as the 12-month trend (green line) and both are on the decline.  During the month of July 2018, there were 187 distressed home sales in St Louis, down 14% from 217 the month before and down 31% from last July when there were 272 distressed homes sold.  For the 12-month period ended July 31, 2018, there were 2,787 distressed home sales, down 30% from the prior 12-month period when there were 3,965 distressed homes sold in the St Louis MSA.

  

St Louis MSA Distressed Home Sales – Past 60 Months

(Click on Chart For Live, Interactive Chart)

 

House Flipping Volume In St Louis Down From Year Ago

During the first quarter of this year, there were 600 home “flips” in St Louis or about 8.6% of the homes sold in St Louis, according to data just released by ATTOM Data Research.  This rate of flipped homes is up 5% from the prior quarter, however, is down 7% from a year ago. The decline certainly doesn’t have anything to do with a lack of interest by investors in flipping, it has more to do with a low inventory and declining mortgage delinquency and foreclosure rates reducing the opportunities.

What is a “flipped” home?

In the report issued by ATTOM Data Research, any home or condo that was sold during the first quarter of this year in an arms-length sale that had previously had an arms-length sale within the prior 12 months as well, was considered a “flip”.  Since homeowners don’t tend to buy a home only to turn around and resell it within a year, when this does occur it is typically the result of an investor buying a property, renovating it, then reselling it.

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St Louis Foreclosure Rate Drops Over Twenty-Percent In Past Year

The number of St Louis homeowners losing their homes in foreclosure declined to a total of 700 foreclosure actions in the St Louis MSA, according to the latest report from ATTOM Research.  Aprils foreclosure rate of 1 in every 1,768 housing units in the St Louis MSA is a decline of 22.82% from the rate a year ago and a decline of 9.68% from the foreclosure rate for March 2018.

As the table below illustrates, of the 15 counties in the St Louis MSA covered, all but three have seen a decline in foreclosure rates from a year ago (and all of those double-digit declines at that) and two-thirds of the counties saw a decline from the month before.

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St Louis MSA Foreclosures – April 2018

St Louis MSA Foreclosures - April 2018

 

 

Number of Seriously Underwater St Louis Homeowners Down Fifty-Percent From 4 Years Ago

The percentage of homeowners with a mortgage in the St Louis MSA that were seriously underwater in the last quarter of 2017 was 13.8%, about half the rate from 4 years earlier, according to data just released by ATTOM Data Solutions.  For this report, a homeowner is considered “seriously underwater” when the total of their home mortgage(s) is equal to, or greater than, 125% of their home’s current value.

Also shown on the table below is the percentage of equity-rich homewners in the St Louis MSA.  An “equity-rich” homeowner is at the other end of the spectrum from an underwater homeowner with their mortgage total being 50% of less than the current value of their home.

You can click the table below to go to the complete information showing the data for the 5-counties that make up the St Louis core market.

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St Louis MSA Underwater Homeowners & Equity-Rich Homeowners

(Click on the table to be taken to the complete report by county)

St Louis MSA Underwater Homeowners & Equity-Rich Homeowners

 

 

Distressed Home Sales In St Louis Continue Downward Trend

Distressed home sales, foreclosures, bank and government-owned homes and short sales, continue to decline in St Louis as the economy and housing market continue to improve.  The chart below illustrates this downward trend as, for each monthly data point, it shows the total number of distressed home sales in the 5-county core St Louis market for the prior 12-months.  Plotting out the prior 12-month activity is a great way to spot trends and changes in the market.  As the chart shows, for the 12-month period ending last month, November 2017, there were 1,484 distressed home sales, down over 34% from December 2015 when there were 2,263 distressed home sales during the prior 12 months.

St Louis 5-County Core Market – Distressed Home Sales- Prior 12-Month Period Monthly For Last 24 Months

(click on chart for live data)

St Louis 5-County Core Market - Distressed Home Sales- Prior 12-Month Period Monthly For Last 24 Months

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St Louis Foreclosure Rate Falls Over 6 Percent From Year Ago

The real estate market in St Louis continues to improve and grow stronger, evidenced by the declining foreclosure rates being reported by ATTOM Data Solutions.  For November 2017, there were 857 foreclosure actions taken on housing units within the St Louis MSA, a decline of 17.52% from the month before and a decline of 6.54% from a year ago.

St Louis MSA Foreclosure Rate – November 2017

St Louis MSA Foreclosure Rate - November 2017

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Home Flipping In St Louis Hits Lowest Level In A Year

St Louis flipped homes accounted for 6.6% of home sales in the St Louis MSA during the 3rd quarter of 2017, the lowest level since the 3rd quarter of 2016 when flips made up 6.3% of the St Louis home sales.  For the purposes of this report, a “flip” was defined as a property that was sold in an arms-length sale for the second time within a 12-month period.

Slow times are good flip times…

As the table below shows, with very few exceptions, for the 17 year period covered in the table, home flips have accounted for a larger percentage of the overall home sales in St Louis during the slow-selling seasons, the 1st and 4th quarters.  This makes sense as lenders are more apt to make deals toward the end of the year to get foreclosures off the books before closing out the year.

Opportunities to flip homes in St Louis on the decline…

As our chart below the table shows, the number of distressed home sales (foreclosures, short sales, and bank-owned property) in the St Louis area has steadily declined during the past 2 years as the economy, including the housing market, continues to improve.

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Home Flips in St Louis 2000-2017 – St Louis House Flipping

Home Flips in St Louis 2000-2017 - St Louis House Flipping

St Louis 5-County Core Market – Distressed Home Sales – Past 24 Months

(Click on chart for live chart with current data)
St Louis Area Distressed Home Sales (Foreclosures, REO's, Bank-Owned Properties, Short Sales) Past 2 Years - Chart

St Louis Rental Vacancies At Lowest Rates In Over A Decade

The vacancy rate for rentals in St Louis during the third quarter of this year was 9.8%, significantly lower than the median vacancy rate of 11.5% for that quarter since 2004.  The year to date median vacancy rate for 2017, through the first 3 quarters, is 8.1% which is tied with last years rate, the lowest in more than a decade.  So it’s a good time to be a landlord in St Louis!

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Rental Vacancy Rates In The St Louis Metro Area – 2015 – 2017

(click table below for complete data going back to 2005 as well as rental rates)

Rental Vacancy Rates In The St Louis Metro Area - 2015 - 2017
Data Source: U.S. Census Bureau – Copyright 2017 – St Louis Real Estate News – All Rights Reserved[/caption]

Number of St Louis Homeowners With Negative Equity Continues To Drop In Most Areas

Over the past couple of years, as the St Louis real estate market has continued performing well, mortgage delinquencies and foreclosures have continued to decline.  Rising home value has also caused the number of “underwater” homeowners, also known as homeowners in a negative-equity position (meaning their mortgage balance exceeds their homes current value) to decline as well.  As the table below shows, 5 of the seven St Louis area counties listed saw a decline in the number of underwater properties in the 3rd quarter of this year from a year ago.  The largest decline in underwater properties was St Charles with a 35% decline.  The two exceptions, the city of St Louis and St Clair County, Il, saw an increase in underwater property of 2% and 14% respectively.

St Louis Underwater (Negative-Equity) Properties – 3rd Quarter 2017

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St Louis Underwater (Negative-Equity) Properties - 3rd Quarter 2017

City of St Louis Has Second Highest Vacant Property Rate In The U.S.

As of the end of September, in the city of St Louis, 7,265 of the 104,288 residential properties in the city were vacant, giving the city a vacant property rate of 6.97 percent, the 2nd highest of all the counties in the U.S., according to a newly released report by ATTOM Data Solutions.  The number of vacant properties in the city of St Louis increased 4.4% from the same time last year.  Baltimore Maryland had the highest vacant property rate at 8.14 percent.

As the table below shows, St Clair County, Illinois was the next St Louis area county on the list coming in at number 11, followed by Madison County, Illinois at #42, St Louis County at #47.

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St Louis Area Vacant Property Rate By County- 3rd Quarter 2017

St Louis Area Vacant Property Rate By County- 3rd Quarter 2017

More Than 100 Zombies In The St Louis Area!

“Zombie” is the name that has been given to vacant property which delinquent mortgages and destined for foreclosure, not but in foreclosure yet.  These properties are in a “no man’s land” so to speak, and often become an eyesore and a burden on the neighborhood as well as city located in.  As the table below shows (compiled from the ATTOM Data report), St Clair County, IL has the highest number of “Zombies” at 99 and also has the highest Zombie foreclosure rate at 14.39%.

St Louis Area Zombie Foreclosures By County- 3rd Quarter 2017

St Louis Area Zombie Foreclosures By County- 3rd Quarter 2017

 

 

 

St Louis Mortgage Delinquency Rate Continues To Fall

On a national level, according to a report released by Corelogic, the foreclosure rate is at a 10-year low and, for the most part, mortgage delinquency rates continue to fall as real estate markets around the country continue to improve.

The state of Missouri, as well as it’s two big metro areas, St Louis and Kansas City, are following suit with improvements in mortgage delinquency and foreclosure rates.

State of Missouri- Mortgage Delinquency/Foreclosure Rates:

  • 30+ day mortgage delinquency rate improved from 5.3% of all mortgage loans a year ago to 4.5% for July 2017;
  • 90+ day mortgage delinquency rate improved from 2.0% a year ago to 1.5% in July 2017;
  • Foreclosure rate improved from 0.5% a year ago to just 0.3% in July 2017

St Louis Metro Area- Mortgage Delinquency/Foreclosure Rates:

  • 30+ day mortgage delinquency rate improved from 8.1% of all mortgage loans a year ago to 6.8% for July 2017;
  • 90+ day mortgage delinquency rate improved from 3.7% a year ago to 3.0% in July, 2017;
  • Foreclosure rate improved from 1.7% a year ago to just 1.2% in July 2017

Kansas City Metro Area- Mortgage Delinquency/Foreclosure Rates:

  • 30+ day mortgage delinquency rate improved from 5.0% of all mortgage loans a year ago to 4.1% for July 2017;
  • 90+ day mortgage delinquency rate improved from 1.9% a year ago to 1.4% in July, 2017;
  • Foreclosure rate improved from 0.5% a year ago to just 0.3% in July 2017

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Flipped Homes Accounted For About One In 13 Home Sales In St Louis During 2nd Quarter

Home flipping accounted for 7.3 percent of all the home sales in the St Louis MSA during the 2nd quarter of this year according to a report released today by Attom Data Solutions.  This is a decrease of  15% from the prior quarter when 8.6% of the homes sold were flips and is an increase of 10.6% from a year ago when 6.6% of the homes sold in St Louis were flips, according to the report.   For the purposes of this report, a “flip” was defined as a property that was sold in an arms-length sale for the second time within a 12-month period.

St Louis house flipping profit margins…

During the second quarter of 2017, the median purchase price of houses that were flipped was $75,000 and the median resale price, 163 days later on average,  was $129,900 for a gross profit margin of $54,900.  Before you get too excited though, remember this is just the gross margin between the price paid and the price resold at.  The actual net profit would be much lower as there would be costs related to the acquisition and sale of the property as well as rehab/repair costs and carrying costs, none of which is available publicly, so we can just talk about gross margins here.

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Home Flips in St Louis 2000-2017 – St Louis House Flipping

Home Flips in St Louis 2000-2017 - St Louis House Flipping

Data Source – AttomData Solutions – Copyright 2017- St Louis Real Estate News – All Rights Reserved

 

St Louis 5-County Core Market – Distressed Home Sales – Past 24 Months

(Click on chart for live chart with current data)
St Louis Area Distressed Home Sales (Foreclosures, REO's, Bank-Owned Properties, Short Sales) Past 2 Years - Chart

Foreclosures In St Louis Increase In April

There were 1,814 foreclosure filings on homes in the St Louis metro area during the month of April 2017, an increase of 13.23% from the month before and an  increase of 12.25% from April 2016, according to a report just released this morning by ATTOM Data Solutions.  As the table below shows, all 7 Missouri Counties included in the report saw an increase in foreclosure activity last month from both the prior month as well as a year ago.  Of those, Lincoln County (which has very little foreclosure activity) saw the largest year-over-year as well as month-over-month increase, follow by St Louis County with a 45.37% increase from the month before and Franklin County with a 71.43% increase from a year ago.

 

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Foreclosure and Serious Delinquency Rates Continue to Decline in Missouri

The foreclosure rate in Missouri continues to decline with the foreclosure rate for February 2017 coming in a 0.4 percent, according to a report just released by CoreLogic.  The rate for February is down slightly from a year ago when the Missouri foreclosure rate was 0.5 percent.  Based upon the mortgage serious delinquency rate (90 days or more) as well as delinquency rate (30 days or more), both lead-indicators or predictors of things to come with regard to foreclosures, the foreclosure rate will continue to decline in the near term.  The mortgage delinquency rate for February 2017 was 4.9%, down from 5.1% in February 2016 and the serious delinquency rate was 1.8% during February 2017, down from 2.2% a year ago.

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St Louis Metro Area Foreclosure Rate Declines in 1st Quarter; St Charles and Franklin Counties Increase

During the first quarter of 2017, the foreclosure rate in the St Louis metro area was one in every 487 housing units, a decline of 19.59 percent from the quarter before, and a decline of 3.61 percent from a year ago, according to a report released today by Attom Data.

As the table below shows, of the 7 counties in Missouri that are part of the St Louis MSA, 6 saw a decline in foreclosure rate from the quarter before and 5 of the 7 saw a decline from a year ago.  The foreclosure rate in St Charles County during the 1st quarter increased 18.64 percent from the 1st quarter of 2016 and Franklin County saw a 43.4 percent increase in the foreclosure rate during the same period.

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Are Landlords and Tenants Bad People?

My headline is a rhetorical question and I personally don’t think landlords and tenants are bad people but, after seeing so many municipalities work so hard over the past few years passing ordinances that, in many cases, in my humble opinion, tramples the property rights of landlords as well as the rights of tenants, one would have to believe that landlords and tenants must be some pretty bad people.  After all, if not, why would some municipalities work so hard to discourage them from entering their cities and work hard to chase them out?

For example, the most recent egregious example of this comes from the north-county city of Berkeley, where, last September, the city council passed an ordinance (#4320-bill can be seen at bottom)  that put a “30-percent limitation of single-family rental homes per residential block“.   Bill number 4456, which was the bill introduced that became the ordinance, gave the purpose of the new ordinance to be:

“The City (Berkeley) seeks to create a positive impact in city neighborhoods by creating an atmospher for residents to enjoy a good quality of life by creating a 30-percent limitation of single family rental homes per residential block”

Since the city of Berkeley seems to equate “a good quality of life” with a “limitation of single family rental homes‘ I think, by negative inference, we can come to the conclusion that Berkeley is saying rental homes, and I would guess either the people that own them, or the tenants that live in them, must negatively impact, or run counter to, “a good quality of life” in their neighborhoods which now brings us back to my initial question, are landlords and tenants bad people?

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Landlords Get Best Return With Rentals In City Of St Louis

Investors that rental property may find their best returns, relative to the price of the homes they buy, in the City of St Louis, according to some county-level rental data compiled by MORE, REALTORS.  As the tables below illustrate, over the past 12 months the median price of homes sold in the City of St Louis was $106.57 per square foot and the median annualized price per foot homes lease for was $11.04 which works out to a gross annual return on investment of 10.4% in the City of St Louis, the highest of the four St Louis area counties we looked at.  The next best return is found in Jefferson County with a 9.8% return, followed by St Charles County at 9.3% and finally, St Louis County, at 9.1%.

Data limitations…

There is an excellent source of very accurate market data available with regard to prices of homes sold, that being the REALTOR MLS which is where our sold data comes from.  One of the reasons this data is so accurate is because the lions share of homes sold in St Louis are done through REALTORS and the data that is reported on those sales to the MLS is subject to strict guidelines and rules to insure accuracy.  When it comes to rental and lease data however, the data is much harder to assimilate.  This is because the majority of rentals are leased without the assistance of REALTORS and therefore the lease data does not make it’s way to the MLS and there really is no other reputable data source available for it.  When it comes to rental data for larger apartment complexes and the like, there is such data available, but not for single family homes.  Therefore, we have worked to produce rental data from the leases that are handled by REALTORS.  As you can see from the tables below, the number of leases reported in the MLS is much smaller than sales (1,283 vs 13,330 for St Louis County for example) however, there are enough reported I believe to make the data statistically significant.

We can drill it down more…

We can drill down the data to a more local level, such as at the school district, city or zip level, and do this for our investor clients, but what I’ve compiled here gives an overall view of the market at the county level.  Another thing I suggest investors evaluate as well before investing their money, is the appreciation rate of homes in that area.  This is data we also compile and, when you put the rental return rate data next to the price appreciation data you get a pretty good picture of the areas that make the most overall sense to invest in.

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Want To Buy A Foreclosure Or Short Sale? Better move quick and pay up!

When I first got in the real estate business in 1979 buying foreclosed property was something pretty well limited to speculators at the time.  People like the broker I started with, and what I became a few years later, that bought property for cash, as-is generally to fix up and resell.  Foreclosures, and how to buy them, were a mystery at the time, not only to the general public but to many in the real estate business as well.  This is what gave us speculators an edge…we knew how to get the information on foreclosures and how the process worked. Ditto for tax sales and sheriff sales and short sales were something that didn’t even exist at the time.

Today, it’s all different however.  Thanks largely to the internet and reality TV, it seems everyone knows about foreclosures, tax sales, and just about every other way of finding and buying distressed property.  While this is good for sellers and for listing agents, it’s made it tough on investors and other buyers looking to take advantage of the opportunity offered through distressed sales.  The result has been a highly competitive market and higher prices.  This was evidenced by the sales data from last year.  As the tables below show, most of the distressed homes sold during 2016 sold for a median of 100% of the current list price at the time of sale.

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Number of Distressed Home Sales In St Louis Declines Nearly Forty Percent In 2016 From Two Years Ago

The number of distressed home sales in St Louis has been on the decline while distressed home prices have remained relatively flat.  For the purposes herein, a “distressed” home sale includes short sales, foreclosures, bank-owned and government-owned homes.   Thus far, as the chart below illustrates, there have been 2,170 distressed home sales in the St Louis 5-County Core market (the City of St Louis and Counties of St Louis, St Charles, Jefferson and Franklin) this year which is a decline of 23% from last year when there were 2,871 distressed homes sold and down 38.4% from 2014 when there were 3,533 distressed home sales in St Louis.  The median price of distressed homes sold in St Louis has not fluctuated much over the past 3 years however, with the median price of distressed sales in 2014 at $61,750, then decreased to $60,000 in 2015 then went up to $62,500 this year.

As the table below the chart shows, currently there are 394 active listings of distressed homes at a median list price of $64,950 which, based upon current sales trends, is a supply of just under 3 months.

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Distressed Home Sales Fall To Lowest Level In 9 Years

A report recently released by ATTOM Data Solutions revealed shows distressed home sales in the U.S. (foreclosures, short sales and bank-owned real estate) accounted for just 12.9 percent of the home and condo sales in the U.S. during the 3rd quarter of this year which is down from 15 percent during the 2nd quarter and down from 15.9 percent a year before.  This is the lowest level for distressed home sales since the 3rd quarter of 2007, according to the report.  Distressed home sales peaked during the first quarter of 2009 when they accounted for 43.9 percent of all home and condo sales in the U.S.

St Louis Distressed Home Sales:

St Louis distressed home sales have followed suit and are on the decline as well.  As the chart below shows, there were 167 distressed home sales last month, down 17 percent from a year ago when there were 207 distressed homes sold during the same period.  However, if look at the past 3 months, there were 561 distressed homes sold in St Louis, down just 6.7 percent from the same period a year ago when there were 601 distressed home sales.

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St Louis Rental Vacancy Rate Rises In 3rd Quarter But Still Down From A Year Ago

The rental vacancy rate in the St Louis MSA the U.S. during the third quarter of this year rose to 9.5 percent from 5.5 percent the prior quarter, according to the latest data released by the U.S. Census Bureau. It is worth noting though that the 5.5 percent vacancy rate seen during 2nd quarter was, as the historical table below shows, the lowest quarterly vacancy rate for the St Louis MSA in well over a decade and 9.5 percent for the 3rd quarter of 2016 is still much lower than the 13.9 percent vacancy rate we saw for St Louis during the 3rd quarter of last year.

 

 

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City of St Louis Makes List of Top Millennial Rental Meccas

The city of St Louis is one of the “Top 17 Single Family Rental Millennial Meccas“, according to a report just released by Attom Data Solutions.  As the interactive info graphic below shows, St Louis joins the likes of Baltimore Maryland, Milwaukee Wisconsin and El Paso Texas, along with others, as a place that is ripe for investors to rent homes to millennials.  For the report, millennial were defined as people born between 1979 and 1993.  According to the report, investors that purchased rental homes in the city of St Louis during the first half of 2016 saw a gross rental yield of 12%, nearly 50% higher than the national average of 8.7%.  In addition, millennials make up nearly a third of the population of the city of  St Louis (29.3%) and 29.8% of the city is rental property, making for a solid rental market.  On the downside, the average wages in the city of St Louis is down 2% from last year.

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Foreclosure Activity Falls to Pre-Bubble Levels – Distressed Home Sales In St Louis Getting Harder To Find

There were 293,190 foreclosure filings in the U.S. during the 3rd quarter of 2016, which is a decrease of 10 percent from a year ago, according to a report released today by Attom Data Solutions.  This marks the fourth consecutive quarter in which foreclosure activity has decreased on a year-over-year basis and continues the steady downward decline in foreclosure activity we have seen for 6 years and has now finally fallen back to levels we saw prior to the housing bubble.

St Louis Distressed Home Sales Decline

Given the downward trend in foreclosure activity, it is not surprising that distressed home sales in St Louis (foreclosures, REO’s and short-sales) have declined as well.  As the chart below shows, over the past 24 months distressed home sales in the St Louis core market (the city of St Louis and counties of St Louis, St Charles, Jefferson and Franklin) peaked in April of 2015 with 300 distressed home sales but have trended downwardly since to 165 distressed home sales last month.  St Louis distressed home prices have remained fairly constant over the past 24 months. with a median sales price of $61,276 over the 2-year period and a median sold price of $60,550 in September.

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