St Louis Home Sales Trending Upward Slightly

After peaking in May 2018 with 27,829 homes sold in the prior 12-months, the St Louis home sales trend has trended downward until hitting 26,852 homes sold in the 12-month period ended August 31, 2019.  However, for the two months since this low, St Louis home sales have trended upward slightly, reaching 26,888 homes sold in the 12-month period ended October 31, 2019.

St Louis 5-County Core Market Home Sales Trend – Past 5 Years

St Louis 5-County Core Market Home Sales Trend - Past 5 Years

Foreclosures Spike In October In Some St Louis Areas

The foreclosure rate for the St Louis MSA during October increased 11.3 percent from the month before however, it was still nearly 25 percent (24.5%) lower than October 2018, according to data just released from ATTOM Data Solutions.  As the table below shows, there were some real mixed results this month.  For example, St Charles County saw a 150% increase in foreclosures from the month before increasing from 10 in September to 25 in October but is down over 60% from October 2018.  The city of St Louis is the only county of significant size in the St Louis MSA that saw both an increase in foreclosures from the month before (65.8^) as well as an increase from a year ago (43.2%).

  

St Louis MSA Foreclosures – October 2019

St Louis MSA Foreclosures - October 2019

St Louis Real Estate Market Update VIDEO – November 2019 – Low-Interest Rates And Consistent Sales Trends

The St Louis real estate market trends remain steady and consistent! The St Louis home sales and price trends give me an optimistic outlook for next year.  Low-interest rates continue to offset some of the cost of the increases in home prices that have occurred. Find out more, as well as get information on some of St Louis’s best resources for home buyers and sellers in our just-released market update video.

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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Actual “Cost” Of St Louis Home Today Over 7 Percent Lower Than Year Ago

Thanks to a strong economy and low-interest rates, the actual cost of a home today in St Louis is lower than it was a year ago, in spite of the fact that the median price of homes sold in St Louis has increased by 5.64% in the past year.   Most people buying a typical home in St Louis finance nearly all of the purchase price, therefore, the cost of financing plays a significant role in the true cost of a home.  Buyers decide what they can afford (as do lenders) based upon the house payment, not the price of the home.

The cost of a home today in St Louis versus a year ago…

As our STL Market Chart below shows, the median price of a home sold in the St Louis 5-County core market in October of this year was $200,000, 5.3% higher than last October when the median price of homes sold was $189,900.  However, as our mortgage interest rate chart below shows, the rate for a 30-year fixed-rate mortgage is currently 3.78%, over a full percentage point less than October 2018 when the rate was 4.83%.

If we do a little math and use our mortgage payment calculator, we find that if someone bought a median-priced home in St Louis in October of 2018 at $189,900 and financed 100% of the purchase at the current rate at the time (4.83%), their payment would have been $1,027 per month.  If a person were to buy a median-priced home in St Louis today at $200,000 and finance 100% of the purchase at the current rate of 3.78%, their payment would be $958.  So, even though the price of the home increased over 5%, the payment on the home (at current prices) actually dropped by 7.2% showing just how much impact interest rates have on the cost of a home.

What are buyers waiting for?

We are entering the “slow season” for real estate, winter, a time when, year after year, home prices typically decrease until hitting a low around January and then start to increase as the weather warms.  Therefore, we are in the period when home prices will be the lowest they will be for the year, interest rates are near the lowest they have been, so, if I were considering buying a home, I would jump into action as I just don’t see how it’s going to get better than this anytime soon.

Top Ten Cities In St Louis MSA Where Homes Sold The Fastest

Homes in Rock Hill sold faster in the past 30 days than in any other city in the St Louis MSA, according to the latest data available from MORE, REALTORS®.  Homes that closed in the past 30 days in Rock Hill took an average time of just 12 days to sell.

As the list below shows, 6 of the 10 fastest-sold cities in the St Louis MSA were in St Louis County, 3 in St Charles County and 1 in Jefferson County.


Fastest SOLD Cities In The St Louis MSA In Past 30 Days

(Click List Below For Current, Complete List)Fastest SOLD Cities In The St Louis MSA In Past 30 Days

Jefferson County Home Prices Increase Nearly 7 Percent In Past Year

The median price of homes sold in Jefferson County during the past 12-months was $179,900, an increase of 6.83% from the prior 12-month period when the median price was $168,400.  As the STL Market Report (an exclusive report available only from MORE, REALTORS®) shows, home sales declined slightly (1%) during the same period and the inventory remains low with a listing supply of just 2.74 months.

As the STL Market Chart at the bottom illustrates (also exclusively available only from MORE, REALTORS®), home prices in Jefferson County have had the normal, seasonal, fluctuations but have been steadily trending upward over the past five years.  Home prices peaked early in the spring season in May of this year at $205,000 and have been slipping into the normal “winter lull” and will continue to slide until sometime between December and February when they typically bottom out.   Last year, home prices peaked in July then fell 9.5% by September and this year Jefferson County home prices have fallen just over 10% since peaking in May.  I expect home prices in Jefferson County to continue their upward trend albeit at a lower rate of appreciation than we have seen recently.


Jefferson County Home Sales Trend Holds Steady

There were 3,379 homes sold in Jefferson County in the 12-month period ending September 30, 2019, a very slight decline of about 1% from a year ago when there were 3,413 homes sold in the prior 12-months.  For the past three months, the 12-month home sales trend in Jefferson County has been amazingly consistent, with data for July and September being identical and August being off by just 1 home sale.

Prices on the rise and inventory is low in Jefferson County..

As the STL Market Report for Jefferson County below the chart shows, there is just a 2.75 month supply of homes for sale in Jefferson County.  The fact that Jefferson County home prices have risen 6.83% in the past year doesn’t seem to have affected home sales there.

Home Affordability Improves In St Louis During Third Quarter

Home affordability improved in the St. Louis metro area during the 3rd quarter, with 4 of the 7 largest counties seeing an improvement in their affordability index from the prior quarter and 5 of the 7 seeing an improvement in affordability from a year ago, according to the latest data from ATTOM Data Research.

The greatest improvement in affordability was in Franklin County.

As the table below shows, Franklin County saw a 12% improvement in housing affordability from the prior quarter and an 11% improvement from a year ago.   Jefferson, St Charles and St Clair (IL) County saw improvements in affordability from the prior quarter as well.

St Louis County suffered the greatest decline in housing affordability.

St Louis County saw affordability decline 12% from the prior quarter and 10% from a year ago.

Home prices are outpacing wages in 5 of the 7 counties covered…

Meth Labs and Real Estate

Yesterday, someone shared with me an article that appeared on CBS News online about a couple, Tyler and Elisha Hessel, that discovered the house they purchased had previously been the subject of a meth lab seizure.  The home, at 7218 Valley Drive in Barnhart, Missouri, was purchased by the Hessel’s in January of 2018.   According to the article, Elisha is expecting a baby and, earlier this year, the results of some standard pregnancy-related tests showed the baby tested positive for amphetamines.  This led to the Hessel’s discovering that the home they purchased was on a list of Meth Lab Seizures from a bust back on October 3, 2013.  The article goes on to state that the Hessel’s have been forced to move out of the home for health reasons and a Go Fund Me campaign has been set up for them at https://www.gofundme.com/f/support-tyler-and-elisha-hessel.

Meth Labs have been a real problem in Jefferson County

The Jefferson County Zip Code With The Hottest Real Estate Market

Yesterday I identified the Zip Code in St Charles County with the hottest real estate market so today I’ll do the same for Jefferson County.  I’ll save the long explanation I gave yesterday though about the importance of not looking at just one piece of data, how it takes a qualified agent with good data to really determine the health of a market, etc.  If you missed that, you can get it in yesterdays article.

What is the hottest market in Jefferson County today?

Based upon some of the data contained in the charts and tables below, I  would have to say that overall, the 63012 market is the hottest today.  As the tables and charts show, the 63012 zip area (Pevely, Barnhart, and Imperial) is number 1 on the fastest-selling zip list for Jefferson County at 40 days and has just over a 2-month supply of homes for sale.  In addition, as the chart at the bottom shows, our exclusive home sales and price trend chart shows home sales in the 63012 zip code area trending upward while most zip codes in the St Louis area are trending downward.

Median Price of Homes Sold in Jefferson County In Past 12 Months Hits $169,000 – Sales Down Slightly

The median price of homes sold in Jefferson County during the 12 month period ended October 31, 2018, was $169,000 according to the STL Market Report™ from MORE™, REALTORS®.  As the STL Market Report™ below shows, this is an increase in the median price of homes sold of 2.42% from the prior 12-month period. During the most recent 12-month period, there were 3,407 homes sold in Jefferson County, a decrease of 0.7% from the prior 12-month period.  There is currently a 2.78 month supply of homes for sale in Jefferson County and listings have been on the market a median time of 119 days.

STL Market Report – Homes – Jefferson County

(click on table to go to live report)

STL Market Report - Homes - Jefferson County