Evaluating the MLS System: Time for Change?

The real estate industry stands at a pivotal juncture, where longstanding practices are being questioned and re-evaluated. Central to this introspection is the structure of the Multiple Listing Service (MLS), a tool indispensable to our trade. Current legal challenges (such as the Sitzer v NAR lawsuit) and scrutiny from the Department of Justice, particularly concerning policies like clear cooperation and offers of compensation, have brought to the forefront a crucial question: Is the current MLS system, tied as it is to REALTOR® association membership, serving the best interests of our clients and the industry?

The traditional model, which intertwines MLS access with REALTOR® association membership, implies that an agent or broker not aligned with the REALTOR® association is denied access to the MLS. This setup, while historically effective in maintaining a standard of practice and ensuring a level of oversight, now faces criticism for potentially limiting competition and choice in the market.

In the St. Louis area, like in many parts of the country, this structure has been the bedrock of real estate transactions. The MLS, governed and in many times owned by REALTOR® associations (such as is the case in St Louis), has long been a symbol of professional adherence to ethical standards and cooperation. However, the landscape is changing. The industry is evolving with technology and a more informed consumer base, leading to questions about whether this model still serves its intended purpose effectively.

Recent events have brought to light concerns about whether these practices stifle competition and limit consumer choice. The clear cooperation policy, for instance, mandates that all listings be made available to all participating MLS members, tying access closely to association membership. The question arises: does this limit the ability of non-association brokers to compete fairly, subsequently negatively  impacting the consumer?

In an ideal scenario, the MLS should be a tool that enhances the market by ensuring wide visibility of listings, fostering competition, and upholding professional standards. But when access to this crucial tool is contingent on association membership, we must ask if we’re inadvertently creating barriers that go against the very principles of open market competition and consumer choice.

As we delve deeper into this issue, a compelling argument arises for decoupling the MLS from REALTOR® association memberships. Such a change could potentially open the market to a broader range of professionals, encouraging innovation and perhaps even leading to improved services and tools. This decoupling could also align with antitrust laws, addressing legal concerns around competition.

However, this proposed change is not without its challenges. The association-MLS model provides a framework for ethical standards and professional conduct. Decoupling might require the development of new systems to ensure these standards are upheld, which could be complex and resource-intensive.

While currently there are more questions than answers with regard to the issues of race, I think one thing that is certain is that we are likely to see changes to the current system on some level in the coming months.

St Louis Metro Area Real Estate Market Report for November 2023 with accurate data you can trust

The St. Louis Metro Area Real Estate Market Report for November 2023, presented below, provides an overview of the November 2023 St Louis real estate market for each county within the St Louis MSA. This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area


St Louis MSA Real Estate Report for November 2023

(click on infographic for complete report including all counties in the St Louis Metro Area)St Louis MSA Real Estate Report for November 2023

Navigating the Changing Landscape of Real Estate: What Buyers and Sellers Need to Know

The real estate industry is potentially on the cusp of a significant shift, one that could redefine the relationship between homebuyers, sellers, and their agents. Several class-action lawsuits, including the Sitzer v. NAR case decided in favor of the plaintiffs last month, have brought considerable attention to how real estate agents representing buyers are compensated. Consequently, many in the industry, myself included, anticipate that changes prompted by either court order or regulation could significantly impact everyone involved in the home buying and selling process

For Buyers: Empowerment through Transparency

Historically, buyer’s agents have been compensated by the seller, creating a perception of “free service” for the buyer. This arrangement often obscured the true cost of services provided by buyer’s agents. The anticipated changes would likely result in a direct payment model, where buyers would pay their agents directly.

What does this mean for you as a buyer? Firstly, it brings transparency. You will have a clearer understanding of what you’re paying for and why. It’s an opportunity to engage more deeply with your agent, understanding their role and the value they bring to your home-buying journey. This shift encourages informed decision-making and could lead to more personalized, high-quality services, as agents strive to demonstrate their worth.

For Sellers: A More Level Playing Field

Sellers, you’re not left out of this equation. The change could level the playing field, making the process fairer. You might find that the costs of selling your home become more predictable, and the overall market dynamics more balanced. However, sellers may experience a bit of ‘sticker shock’ initially. When selling, and basing the value of their home on recent sales, they will need to remember that those prior sale prices included the cost of the buyer’s agent. If now the buyer has to incur this cost, it will effectively add to the buyer’s overall expenses and, consequently, lower the perceived value of the home compared to listings where the seller paid the commission. In other words, sellers, you can’t have your cake and eat it too.

For Agents: A Call to Elevate Services

To the real estate professionals reading this: the proposed changes are a call to action. This is an opportunity to showcase the value and expertise you bring to the table. By focusing on quality service, specialization, and client satisfaction, you can navigate these changes successfully. Remember, a more informed consumer is an opportunity to build deeper, trust-based relationships.

A Forward-Looking Industry

Change is often accompanied by uncertainty, but it also brings growth and progress. As we navigate this evolving landscape, our focus remains on empowering you with information and insights. Whether you’re buying, selling, or simply exploring the market, remember: the value of a skilled real estate professional is undisputed. The right agent is your ally, advocate, and expert.  If you are looking for such an agent, a good place to start is my firm, MORE, REALTORS® as those are the only kind of agents we surround ourselves with (shameless plug).


Missouri Homebuyers, Mark Your Calendars: The Surprising Best Month to Buy Revealed

In the ever-shifting sands of the real estate market, timing can be the key to unlocking exceptional value. A recent comprehensive study by ATTOM Data Services, which analyzed over 47 million home sales, uncovers a surprising twist specific to the Missouri housing market. While the national trend leans towards October for optimal home buying, Missouri charts a different course, offering a unique window of opportunity for prospective buyers.

Discovering Missouri’s Seasonal Advantage

This extensive study paints a vivid picture of real estate trends, providing invaluable insights for both buyers and sellers. For Missouri, the findings point to December as a golden month for home purchasing, differing from the national trend. This divergence presents a strategic opportunity for buyers in the state to potentially secure better deals.

What This Means for St. Louis Home Buyers and Sellers

In the St. Louis real estate market, the latest data presents a compelling narrative for immediate buyer action. With December’s arrival, historically marked as the most advantageous month for home purchases in Missouri, buyers are positioned to capitalize on potentially lower prices. This trend aligns closely with the findings from my recent analysis on interest rates dropping to their lowest in over two months. Together, these factors create a prime environment for buyers in the current market. For sellers, this period warrants a strategic review to align with the unique opportunities that December offers.


Best Month to Buy a Home in Missouri

(click on chart for live, interactive chart)

Best Month to Buy a Home in Missouri

St Louis METRO EAST Real Estate Market Report for October 2023 with accurate data you can trust

The St. Louis METRO EAST Real Estate Market Report for October 2023, presented below, displays data for St Clair County in Illinois and by clicking on the infographic you will reveal the market report for every county in Illinois that is part of the St Louis metro area.  This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area

St Louis METRO EAST Real Estate Report for October 2023

(click on infographic for complete report for all Illinois counties that are part of the St Louis metro area)St Louis METRO EAST Real Estate Report for October 2023

St Louis Real Estate Market Report for October 2023 with accurate data you can trust

The St. Louis Real Estate Market Report for October 2023, presented below, merges data from both the City and County of St. Louis. This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area

We invite you to dive deeper into our comprehensive demographic, which also sheds light on the St Charles, Jefferson and Franklin County markets as well by tapping on the image below.


St Louis Real Estate Report for October 2023

(click on infographic for complete report including other counties)St Louis Real Estate Report for October 2023

St. Louis Ranks 9th Lowest for Average Down Payments among Top 50 U.S. Metros

In the world of real estate, down payments have emerged as a significant financial factor for homebuyers across the United States, and St. Louis is no exception. A recent report from LendingTree sheds light on the dynamics of down payments, and it’s essential for prospective buyers and sellers in St. Louis to understand how the local market fares in this regard.

St. Louis Down Payment Statistics:

  • St. Louis ranks 42nd out of the nation’s 50 largest metropolitan areas in terms of average down payments. This ranking places it 9th in terms of the lowest down payment amount in the 50 largest metros.
  • The average down payment in St. Louis comes in at $56,251. While this figure may not reach the heights seen in some of the more expensive coastal cities, it’s still a substantial amount.

Down Payment as a Percentage of Income:

  • One critical metric to assess affordability is the down payment as a percentage of the average annual household income. In St. Louis, the average down payment represents approximately 54.87% of the area’s average annual household income.

Challenges and Opportunities:

  • For many homebuyers in St. Louis, coming up with a down payment that accounts for over half of their annual household income can present challenges. It may require careful financial planning and discipline to accumulate the necessary funds.
  • On the positive side, St. Louis fares better than several major metros where down payments exceed 100% of the average household income.

Tips for St. Louis Homebuyers:

  • Prospective buyers in St. Louis should explore various options for coming up with a down payment, such as saving over time or investigating loan programs that require lower upfront cash.
  • Additionally, buyers should stay informed about down payment assistance programs available in the St. Louis area that can help make homeownership more accessible.


 

In summary, while St. Louis may not have the highest average down payments in the nation, it’s essential for local homebuyers to be aware of the financial aspects of purchasing a home. Understanding how down payments align with income and local market conditions is key to making informed decisions in the St. Louis real estate market. Stay tuned to StLouisRealEstateNews.com for more insights into the St. Louis real estate landscape.

Vigilance Against Real Estate Fraud: A Critical Reminder for the St. Louis Market

In the ever-evolving landscape of real estate transactions, the threat of fraud has become increasingly sophisticated and pervasive. Recent alerts from Westcor and other title insurance underwriters highlight a worrying trend in real estate fraud, impacting not just foreign-owned unimproved lots but also residential and commercial properties across the board. As a leading voice in the St. Louis real estate market, it’s crucial to address these concerns and reinforce the importance of vigilance among our agents and clients.


The Escalating Threat of Real Estate Fraud

  • Seller Impersonation: No longer confined to foreign-owned, unimproved land, fraudsters are now targeting all types of properties, including those with owner-occupied homes and commercial entities. This form of deception involves impersonating the property owner to illegally sell the property.
  • Earnest Money Fraud: A newer tactic involves the fraudster acting as both the buyer and seller, using counterfeit checks for earnest money deposits. These checks, often drawn from foreign banks, are for amounts higher than typical in a purchase agreement. The scam unfolds as the fraudster cancels the deal before the check clears, demanding a wire transfer refund of the deposit.
  • Fraudulent Contract Assignments: In some cases, a fraudulent buyer assigns their contract to an unsuspecting third party. This complex scam involves posting online listings for properties that aren’t actually for sale, leading to conflicting demands on escrow deposits and creating a dilemma for title agents.

Red Flags and Preventative Measures
To safeguard against these scams, it’s essential to recognize potential red flags:

  • Unusual Communication Patterns: Be wary of sellers who avoid in-person meetings or insist on communicating only via phone, text, or email.
  • Inconsistencies in Identity: Pay attention to discrepancies like accents not matching the owner’s name, inability to answer property-specific questions, or documents signed or notarized in unexpected locations.
  • Urgency and Aggression: A seller in a hurry or who becomes belligerent when asked for verification is a potential red flag.
  • Suspicious Financial Requests: Be cautious of sellers requesting fund transfers to foreign bank accounts or presenting foreign checks, especially for amounts exceeding typical earnest money.

Best Practices for Real Estate Professionals

  • Verification: Always verify the identity of all parties involved in a transaction. Utilize state websites for license authenticity checks and refer to resources like the European Union’s PRADO website for passport verifications.
  • Payment Methods: Avoid accepting foreign checks. Instead, insist on wired funds for transactions.
  • Legal Consultation: In cases of uncertainty, seek advice from a licensed real estate attorney, especially regarding escrow arrangements.
  • Reporting: If you encounter fraudulent activities, report them immediately to the relevant authorities, including providing copies of fraudulent identification and documents.

Staying Informed and Prepared

For more detailed information on these scams, visit the Federal Trade Commission’s guide on fake check scams and the Financial Crimes Enforcement Network’s resources on title and escrow fraud.

Conclusion

The real estate industry in St. Louis, like many others, is not immune to the threat of fraud. It’s imperative that we, as professionals, remain vigilant, informed, and proactive in our efforts to protect our clients and ourselves from these deceptive practices. By staying aware and adhering to best practices, we can continue to uphold the integrity and security of real estate transactions in our region.

This article aims to educate and alert the St. Louis real estate community about the increasing sophistication of fraud in the industry, emphasizing the importance of vigilance and adherence to best practices to safeguard against these threats.

St. Louis Condo Sales Dip to a Nine-Year Low

For the 12-month period ended October 31, 2023, there were 3,097 condominiums sold in the St Louis 5-county core market which, as the Condo 12-Month Sales and Price Trend Chart below (available exclusively from MORE, REALTORS®) shows, is the lowest total for 12-month sales since August 2014. The St Louis Condominium sales trend is faring slightly better than single-family homes sales are because, as I reported earlier this week, St Louis home sales have fallen to the lowest level since early 2013.

St Louis Condo prices increasing a slower pace….

As the chart at the bottom illustrates, the median price per foot for Condominiums sold in the St Louis area increased this year 8.1% from last year which, while it is a higher percentage increase than seen during the same period for homes, is a lower rate of price appreciation than the 11.0% seen in 2022 and 9.0% in 2021.


 

St Louis Condo 12-Month Sales Trend and Price Trend

(click on report for live, interactive report)St Louis Condo 12-Month Sales Trend and Price Trend

St Louis Condo Price Trends

St Louis Condo Price Trends

St Louis Real Estate Market Report for September 2023 with accurate data you can trust

The St. Louis Real Estate Market Report for September 2023, presented below, merges data from both the City and County of St. Louis. This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area

We invite you to dive deeper into our comprehensive demographic, which also sheds light on the St Charles, Jefferson and Franklin County markets as well by tapping on the image below.


St Louis Real Estate Report for September 2023

(click on infographic for complete report including other counties)St Louis Real Estate Report for September 2023

Update: Jury Returns Verdict in Sitzer Lawsuit, Awards $1.785 Billion in Damages

In a groundbreaking development, the jury in the Sitzer v National Association of REALTORS®, et al, lawsuit has returned a verdict in favor of the plaintiffs. According to reports by Inman News, the jury found against all defendants and awarded a staggering $1.785 billion in damages. This decision could have far-reaching implications for the real estate industry, potentially reshaping commission structures and business practices.

The lawsuit, which has been closely followed since its filing in 2019, questioned the legality of certain real estate commission practices. The verdict is likely to send shockwaves through the industry, prompting legal reviews and potentially setting the stage for further litigation.

It remains to be seen how this verdict will impact the real estate market in the long term, but it is clear that the decision marks a significant moment in the ongoing debate over real estate commissions and transparency.

Stay tuned for more updates and in-depth analysis on what this verdict means for the future of the real estate industry.

Do Agents Steer Homebuyers?

As if there wasn’t enough negative attention on the real estate industry, last week a study was released, “Et Tu, Agent? Commission-Based Steering in Residential Real Estate.” The study suggests that buyer agents may steer their clients away from properties offering low commissions. It argues that this is a key reason why agent commissions have remained high in the digital age, even as commissions in other industries have declined. According to the report, listings with the lowest commissions take 33% longer to sell and face a 75% greater risk of not selling at all.

So, is this true?

That’s a difficult question to answer. First, as the chart below indicates, the average commission rate offered to a buyer’s agent in the St. Louis market has remained relatively stable. For over 20 years, the annual average rate has been 2.7%, with the only exception occurring in March 2010 when it rose to 2.925%. Given that most listings offer the same commission rate, it’s challenging to determine if agents are steering away from low commissions. However, this consistency might support another allegation: that the industry has established a “normal” commission rate. It’s hard to deny some level of pressure on listing agents to offer a specific commission rate when thousands of listings end up offering the same rate. Moreover, offering a “below-normal” commission rate as a listing agent can attract criticism from peers.


Remodeling Market Shows Signs of Cooling

The National Association of Home Builders (NAHB) recently released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2023. The index showed a decline, with a reading of 65, which is three points lower than the previous quarter. Despite the dip, the index remains above 50, indicating that more remodelers view the market conditions as good rather than poor. However, the decline suggests that the remodeling market is experiencing some cooling off, particularly in larger projects.

Current Conditions and Future Indicators
The Current Conditions Index, which is an average of three components including large, moderately-sized, and small remodeling projects, fell five points to an average of 72. Specifically, large remodeling projects ($50,000 or more) decreased by five points to 67, moderate projects (between $20,000 and $50,000) fell by four points to 73, and small projects (under $20,000) declined by five points to 76.

The Future Indicators Index, which measures the rate of incoming leads and inquiries as well as the backlog of remodeling projects, also showed a decline. It fell three points to 57 compared to the previous quarter. The component measuring the rate of incoming leads and inquiries dropped by three points to 56, while the backlog of remodeling jobs decreased by two points to 59.


Is The Decline in St Louis Buyer’s Agent Commission Rates a Sign of Times to Come?

For years, the average buyer’s agent commission rate in the St. Louis real estate market has remained remarkably stable. According to a chart from MORE, REALTORS®, the rate has consistently been at 2.7% for not just the past five years but for over two decades. However, recent data shows a notable shift. Starting in June 2023, the rate dropped to 2.6%, followed by a further decline to 2.575% in July and 2.5% in August, where it remained in September.

A Response to Legal Spotlight?

The timing of this decline coincides with a period of increased scrutiny on real estate commissions, largely due to recent class-action lawsuits that have been the subject of several articles I’ve written over the past several months.

While it’s too early to definitively say that the decline in commission rates is a direct response to these lawsuits, the correlation is hard to ignore. The legal challenges have certainly shed light on the industry’s practices, prompting discussions among consumers and professionals alike about the fairness and transparency of commission rates.


 

Average Commission Rate to Buyers Agents in St Louis

(click on chart for live, interactive chart)
Average Commission Rate to Buyers Agents in St Louis

Housing Market Sentiment Shifts: Buyer Optimism Hits All-Time Low as Seller Confidence Slightly Retreats from Record High

Every month, Fannie Mae surveys consumers to gauge their sentiment on whether it’s a good time to buy or sell a home. The results are published in their Home Purchase Sentiment Index® (HPSI). In the most recent HPSI report, 84% of respondents said they felt now was a bad time to buy a home. This is the highest percentage holding this view since the survey’s inception in 2012.

On the flip side, 63% of those surveyed believed now was a good time to sell a home. This is a slight dip from last month’s 66%.

As for interest rates, a mere 17% of consumers expect mortgage rates to decrease in the next 12 months


Fannie Mae Home Purchase Sentiment Index Chart

(click on chart for live, interactive chart)
Fannie Mae Home Purchase Sentiment Index Chart

 

[xyz-ips snippet=”Homes-For-Sale”]

Comparing Real Estate Markets: Rockwood vs. Ferguson-Florissant School Districts

The St. Louis real estate market is a complex landscape, influenced by various factors such as location, amenities, and notably, school districts. In this article, we delve into an exclusive comparison between two St Louis school districts: Rockwood in west St Louis county and Ferguson-Florissant in north St Louis county. Utilizing the STL Market Reports provided exclusively by MORE, REALTORS®, as well as infographics depicting census data, we aim to offer a comprehensive overview of these markets for the 12-month period ending September 30, 2023.

Key Market Trends

Rockwood School District

  • Decline in Sales: The Rockwood School District saw a decline of 28.63% in the number of homes sold compared to the prior 12-month period.
  • Increase in Price: Despite the decline in sales, the median sold price increased by 3.45%.

Ferguson-Florissant School District

  • Decline in Sales: The Ferguson-Florissant School District experienced a decline in sales of 18.42%.
  • Decrease in Price: Unlike Rockwood, Ferguson-Florissant also saw a decline in the median sold price by 1.99%.

St. Louis Luxury vs. Non-Luxury Home Inventory: A Tale of Two Markets

As a follow-up to my previous article on the diverging trends in luxury and non-luxury home sales in the St. Louis area, we now turn our attention to the current state of inventory in these two segments. The tables below (exclusively available from MORE, REALTORS®) reveals a surprising contrast: the supply of luxury homes (with a list price of $700,000 or above) in the St. Louis 5-County Core market stands at 2.13 months, while the inventory for non-luxury homes is only 1.40 months.

A Closer Look at Luxury Home Inventory

The 2.13-month supply of luxury homes in the St. Louis 5-County Core market suggests, while still favoring sellers, a more balanced market than the non-inventory market which, due to the very low supply, still favors sellers.


St Louis Supply Of Homes For Sale Hits Highest Level in Over 3 Years

According to the latest MLS data reported by MORE, REALTORS®, there is currently a 1.38-month supply of homes for sale in the 5-county core market of St. Louis. While this may not seem like a significant inventory, it’s worth noting that for the past few years, the supply was below half a month. It gradually increased to over one month and reached 1.38 months at the end of September. This represents the highest level of inventory, based on months’ supply, that the St. Louis area has seen in over three years. However, this is still well below the historical norm of a 4 to 6-month supply.

Home sales for 12-month period ended September 3oth were, as the report below shows, down nearly 20% in the St Louis area and home prices were up 3.77%.


STL Market Report

(click on report for live report)

STL Market Report

St Louis Home Affordability Declines Double Digits From a Year Ago

As a result of rising interest rates and home prices at levels higher than increases in income, homes in St Louis continue to become less affordable.  In fact, according to data just released by ATTOM Data Research, home affordability declined double digits during the 3rd quarter of this year in all five counties that make up the St Louis core market.  As the info graphic below illustrates, the percentage of wages needed to buy a home have, depending upon county, increased about a third to almost half from the historical “norm”.

Least affordable ever…

Three of the five counties that make up the St Louis Core market (St Louis, St Louis City, and St Charles) hit the least affordable levels ever during 3rd quarter, with Franklin County hitting its lowest level last quarter and seeing a slight uptick in affordability during 3rd quarter.  Conversely, Jefferson County saw its least affordable quarter back in 2007.

Most affordable ever…

We have to take a quick stroll down memory lane to visit when homes were most affordable in the St Louis area.  Franklin County had its most affordable quarter just back in 2020, St Louis County was back in 2013, Jefferson and St Charles 2012 and the City of St Louis had its most affordable quarter over 14 years ago in 2009.


St Louis Home Affordability – 3rd Quarter 2023

(click on image below for full infographic showing all info)

St Louis Home Affordability - 3rd Quarter 2023

Home Flipping In St Louis Down Nearly a Fourth From a Year Ago

There were 788 homes and condominiums “flipped” during the second quarter of this year in the St Louis M.S.A., according to data just released by ATTOM Data Solutions.  As the infographic below illustrates, these flips represent 8.7% of all sales during the quarter, a decrease of 23.9% from the prior quarter and a decline of over 22% from a year ago.


St Louis Home Flipping Report Q2 2023

(click on infographic to see complete report including prices and profits)

St Louis Home Flipping Report Q2 2023

St Louis Real Estate Market Report for August 2023 with accurate data you can trust

The St Louis Real Estate Market Report for August 2023 is below and combines data for the City and County of St Louis.  This data is presented by MORE, REALTORS, recognized as a leading authority in St Louis real estate market intelligence.  We invite you to dive deeper into our comprehensive demographic, which also sheds light on the St Charles, Jefferson and Franklin County markets as well by tapping on the image below.

Navigating the St Louis property landscape requires precision…

In the current property climate, likened to a complex chess match, the price for ill-informed decisions can be high. A limited inventory of homes coupled with a surge of enthusiastic buyers has intensified competition, sometimes leading to overvaluation of properties. While there’s no harm in paying a premium for a home, it’s essential that this decision is backed by concrete data and the right motivations.

Smart decision-making hinges on reliable data and a knowledgeable real estate professional to interpret it. At MORE, REALTORS our pride lies in our team’s expertise to steer both buyers and sellers through the intricacies of the current market with confidence.

Our commitment is to curate and disseminate prime market intelligence, empowering our agents and clientele to make enlightened choices. While no data set is infallible, striving for excellence ensures that our decisions are grounded.

Isn’t this data accessible to all REALTORS¬Æ?

It’s a common assumption that every agent, particularly those that are REALTORS possesses identical data. Taking St. Louis as a case in point, all REALTORS¬Æ can tap into the extensive MARIS MLS system. ¬†However, mere access doesn’t cut it. Think of it as the web: the real test lies in sifting out credible information.

Many agents rely on generic data handed down to them. In contrast, our agents utilize advanced software to tailor-make reports for individual clients. They also meticulously vet the data for discrepancies, emphasizing our commitment to ensuring that you receive nothing but the most reliable insights, even when sourced from a reputable origin like ours.”

Continue reading “St Louis Real Estate Market Report for August 2023 with accurate data you can trust

Does it Matter??

Definitely a philosophical question but here we are talking about Smart Homes. Indeed, the adoption and implementation of the Matter Protocol could end up having a substantial impact within the real estate industry and all its intertwined industries. Before I get into why that is let me tell you what Matter is. In the context of smart homes, a protocol like Matter would define the rules and specifications for how smart devices, such as lights, thermostats, door locks, and more, communicate with each other over a network within a single ecosystem. So, here’s why I think it could have a huge impact in real estate:

  1. Seamless Integration: This protocol ensures that devices from different manufacturers work harmoniously together. This simplifies the marketing of smart homes, assuring buyers that their devices will seamlessly integrate.
  2. Increased Property Value: Homes equipped with Matter Protocol devices can offer a competitive edge if marketed correctly. Buyers are drawn to properties with a unified and ready-to-use smart home system, potentially leading to higher property values and lower insurance rates.
  3. Efficient Transactions: Home inspectors and buyers should easily be able to evaluate integrated smart home systems, reducing some of the transactional complexities. In fact, an ASHI certified inspector should be able to understand 5 of the biggest Smart Home technologies.
  4. Futureproofing: Matter Protocol maintains compatibility as technology evolves. In other words, no planned obsolescence. Remember when Apple got fined over $300m for slowing down your device?? This reassures buyers that their smart home investments won’t quickly become outdated.
  5. Diverse Device Selection: The protocol encourages a wider range of devices adhering to the same standard. Smart Home Certified real estate professionals can offer a variety of devices that suit buyers’ preferences.
  6. Simplified Management: Property managers benefit from streamlined smart home system maintenance. A uniform protocol minimizes operational challenges across multiple properties.
  7. Sustainability Appeal: The protocol supports energy-efficient practices, attracting eco-conscious buyers and aligning with green trends.

This protocol is backed by some of the biggest players in the Smart Home industry. Amazon, Apple, Google, Samsung, et al. are all continually developing more products for this protocol. Even with these names involved, the rollout of the hardware has been slow and it’s still pretty much lighting, plugs and shades. Level Lock is the one smart lock with a little secret: it hides a Thread radio in its hardware that will support Matter. Huh? Yeah, exactly. There’s a lot to this Smart Home stuff so if you‚Äôre buying or selling a home with Smart Home integrations, hire an agent who understands what this all means to the overall transaction– the only Smart Home Certified CRS agent in the Greater St. Louis area, John Donati.*

John Donati, Smart Home Certified St Louis Realtor
About the author…
John Donati, REALTOR®
Smart Home Certified
Accredited Buyer’s Representative (ABR¬Æ)
Military Relocation Professional (MRP)
JohnDonati.com

Most People Prefer Larger Homes with Larger Yards Over Walkability

According to a recent survey by the Pew Research Center, 57% of Americans say they would prefer living in a community where the houses are larger and farther apart even though schools, stores and restaurants are several miles away.  This is down from 60% when the same survey was done in 2021 and up from 53% from the 2019 Survey.

Majority of Americans Prefer Big Houses Over Walkability

St. Louis City Considers New Ordinance Targeting Landlords

Last month, city of St Louis mayor, Tishaura Jones, signed into law a new ordinance which provides “access to legal representation for tenants facing eviction or equivalent proceedings”.  Surprisingly, it does not appear that the tenant needs to show a final hardship or need for “full legal representation” to be provided at no cost as the bill defines a “covered individual” as “any residential tenant who occupies a dwelling located within the City under a claim of legal right, other than the legal property owner of the dwelling.”  Another interesting thing in the ordinance is that it appears to include legal representation for not only in the case of an eviction but also in the case of a non-renewal of a lease as Section Four of the ordinance (General Provisions of Right To Counsel for Tenants In Covered Proceedings) states “A covered individual may access legal representation as provided in this ordinance as soon as a landlord provides notice to terminate or not renew a tenancy, or as soon thereafter as is practicable.”

Then, according to reports, yesterday, St. Louis Aldermanic President Megan Green announced that legislation was being drafted to require landlords in the City of St Louis to provide contact information as part of the City’s occupancy permit process.  Aldermanic President Green stated “It will help the city better keep track of who is owning certain properties so if there’s issues with properties there’s a local agent requirement, instead of trying to track down a random person registered to an LLC, which is often a challenge,”  Landlords will also be required to report the rental amount they are charging according to Green.

Green also announced that the Board of Aldermen plan to consider a “tenants bill of rights” as well.

Ordinance 71694 – Providing Legal Representation to Tenants Facing Eviction

(click on image below for entire ordinance)

Ordinance 71694 - Providing Legal Representation to Tenants Facing Eviction

St Louis Real Estate Market Report for July 2023 with accurate data you can trust

Below is the St Louis Real Estate Market Report for July 2023 for the City and County of St Louis combined from MORE, REALTORS®, one of the most trusted sources for St Louis real estate market data and information.  You can access the full infographic, containing data for St Charles, Jefferson and Franklin Counties as well by clicking on the image below.

The current St Louis real estate market leaves little room for errors…

The real estate market today is like a tough game where making wrong decisions based on poor information can cost you. With few homes listed and many eager buyers, there’s a rush to outbid others, leading some people to pay more than a home’s true value. It’s okay to pay a bit extra if you’re doing it for the right reasons and based on solid facts.

To make smart choices, you need accurate information and a great real estate agent who knows how to use it. I’m proud that our team at MORE, REALTORS® is comprised of such experts who can guide buyers and sellers to make rewarding decisions in this tricky market.

We work hard to gather and share the best market information to help our agents and clients make informed decisions. While no information is 100% perfect, getting as close to that as possible can help you make smarter choices.

Don’t all REALTORS® have this data?

You might think all agents have the same information, especially those under the REALTORS® banner. In St. Louis, for example, every REALTOR® can access the same vast data through the MARIS MLS system. But simply having access isn’t enough. It’s like the internet: the challenge is finding trustworthy information.

A lot of agents use general data given to them by others. Our agents, however, use special software to customize reports for their clients. They also double-check the information to spot any errors. This shows how serious they are about making sure you get only the best, even when the data comes from a trusted source like ours.

Continue reading “St Louis Real Estate Market Report for July 2023 with accurate data you can trust

Missouri Ranks 29th In U.S. For Lowest Property Tax Rates

According to a study released earlier this year by WalletHub, Missouri property tax rates are the 29th lowest in the U.S.  To determine the tax rates for this list, WalletHub took the median property tax payment for each state and divided it by the median property value to determine the effective tax rate.  For Missouri, the median home price was $171,800 and median property tax was $1,676 resulting in an effective tax rate of 0.98%.  Hawaii was the state with the lowest tax rate coming in at a scant 0.29% and New Jersey the highest at 2.47%.

WalletHub also compared “Blue States” with “Red States” and, as the infographic at the bottom shows,  found that Red States impose lower real estate property taxes than Blue States.

Real Estate Property Tax Ranking By State

(click on map for interactive map showing ranking for each state)

Real Estate Property Tax Ranking By State

Blue States vs Red States – Property Taxes

 

St Louis Ranks as the Third-Best Metro For Homeownership

According to a newly released report by Lending Tree, St Louis is the third-best metro area in the U.S. for homeownership.  The report ranks homeownership in metro areas based upon the Median ratio of housing costs to household income for owner-occupied homes.

Best Metro Areas In The U.S. For Homeownership

(click on infographic below for the complete list with details)

Best Metro Areas In The U.S. For Homeownership

 

 

Two St Louis Metro Area Cities Make The “Safest Cities In The U.S.” List

In Ridgefield, Connecticut you only have a 1 in 510 chance of being a victim of crime, according to recent FBI data. This makes Ridgefield, CT the safest city in the U.S.!  This is based upon the crime rate for crimes of arson, burglary, larceny-theft, motor vehicle theft, murder, rape, armed robbery, and aggravated assault for cities with a population of at least 25,000 people.  As the map below shows, the St Louis metro area has two cities that made the list, Ballwin, Missouri (#41) and Edwardsville, Illinois (#33).

See all homes for sale, and recently sold homes in Ballwin here.

See all homes for sale, and recently sold homes in Edwardsville here.

Safest Cities In The U.S.

(click the map to see entire map for the U.S.)

Safest Cities In The U.S."

 

 

Seventy-Eight Percent of Consumers Say Now is a Bad Time to Buy a House

Every month Fannie Mae surveys consumers to gauge their sentiment toward whether its a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI).  In the most recent HPSI report, 78% of the people surveyed said they felt now was a bad time to buy a home, this is a decline from 80% in May.  Conversely, 22% of consumers think now is a good time to buy a home up from 19% the month before.  Interestingly enough, everyone had an opinion as the percentage of those that did not dropped to 0%, the first time it’s hit zero in the history of the survey.

Still a good time to sell..

Now is a good time to sell according to 64% of the consumers surveyed, which is down from 65% the month before and 36% think it’s a bad time to sell, up from 34% the month before.

[xyz-ips snippet=”Homes-For-Sale”]

Fannie Mae Home Purchase Sentiment Index Chart

(click on chart for live, interactive chart)
Fannie Mae Home Purchase Sentiment Index Chart

Is Now A Good Time To Sell?

(click on chart for the complete report)

Is Now A Good Time To Sell?

[xyz-ips snippet=”Homes-For-Sale”]

St Louis Real Estate Market Report for May 2023 with accurate data you can trust

Below is the St Louis Real Estate Market Report for May 2023 for the City and County of St Louis combined from St Louis Real Estate Search (the Official site).    You can access the full infographic, containing data for St Charles, Jefferson and Franklin Counties as well by clicking on the image below.

In this competitive market don’t make decisions based upon bad data!

Today’s real estate market is unforgiving for homebuyers, driven by a scarcity of inventory and robust buyer demand. This, coupled with not just bidding wars but “terms wars”, has made it challenging for many. In an effort to stand out, homebuyers are waiving contingencies from their offers and pushing their budgets to the limit. Quite often, these buyers are willing to pay more than the actual worth of the property. As I previously addressed in my article, “Are Homebuyers Today Grossly Overpaying for Homes and Making Decisions They’ll Regret?“, this approach is acceptable, provided it’s a well-informed decision.

To make such decisions, you need accurate data and an experienced, professional agent who can interpret that data and apply it to your unique situation. This is why I take immense pride in our team at MORE, REALTORS®. Our agents are skilled professionals who can guide both buyers and sellers through the intricacies of the current market to a successful outcome.

To support our agents and clients, I invest considerable time in gathering, scrutinizing, and reporting on market information and data. I aim to provide the most precise data possible to empower smart, informed decision-making. While it’s true that no data can be 100% accurate in all respects, getting as close to that ideal as possible improves the odds of making sound decisions.

Don’t all agents have the same data?  

It’s logical to think that all agents, especially those who are REALTORS®, have access to the same data. Indeed, in our area, all REALTORS® can access the most extensive and comprehensive source of information for the St Louis residential real estate market — MARIS, the REALTOR® Multiple Listing System (MLS). Yet, simply having access to this wealth of information is only the first step. It’s akin to the internet: while you can find nearly any information you seek online, the real challenge lies in knowing where to find it and determining the most accurate sources. The same principle applies to real estate market data available in the MLS.

While most agents aren’t data nerds and often depend on aggregated data provided by others, our agents, to some extent, do the same. However, a notable difference lies in their ability to define criteria and create their own reports for their clients using our proprietary software. Furthermore, they don’t simply accept the data we provide — they scrutinize it, cross-verify it, and highlight any errors they discover. This level of commitment, while humbling, is a testament to their dedication to accuracy, even when the data comes from a trusted source like our company.

Copy and Paste Culture Among Many Agents...

Contrary to the scrutiny that our agents apply to our data, many agents merely copy and paste infographics or reports they receive, without cross-checking the information. Take, for example, the infographic below showing the median sale price of homes in May 2023 for the city and county of St Louis combined as $255,000. Yet, numerous agents are sharing a report that states the median sale price for that market in May was $285,000. That’s nearly 12% higher than the actual figure, a discrepancy I deem significant. If you’re a buyer basing your offer, even partly, on market data, wouldn’t it be better to know the median price is actually $255,000 and not $285,000? Your next question might be, ‘How do you know your data is accurate?’ I’ve discussed this in detail in a previous article, which remains applicable today.”

Continue reading “St Louis Real Estate Market Report for May 2023 with accurate data you can trust