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)
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).
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.
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)
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)
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.
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.
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)
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.
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.
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.
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
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
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%.
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.
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%.
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)
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)
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.”
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.
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.
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.
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.
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.
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.
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.”
As of April 1, 2023, the Federal Emergency Management Agency (FEMA) has put into action the National Flood Insurance Program’s (NFIP) Risk Rating 2.0, a newly devised pricing methodology. According to FEMA, this contemporary approach to flood risk assessment uses state-of-the-art technology and conforms to industry’s highest standards. The aim of this new model is to ensure that FEMA provides flood insurance rates that are not only actuarially justified, but also more equitable and comprehensible, and most importantly, they accurately represent the flood risk associated with a specific property.
There has been a fair amount of negative reports about the change in flood insurance pricing with 77% of the people with flood insurance seeing an increase in premiums as a result. For Missouri, 29.3% of homeowners with flood insurance will see a decrease in their flood insurance premium as a result with about 40% of these decreases being $50 per month or more. On the flip side, 62.4% will see an increase up to $10 per month, 6.1% with an increase from $11 to $20 per month and just 2.2% of the homeowners will see their flood insurance premiums increase by more than $20 per month.
Resources for more information on FEMA’s Risk Rating 2.0 as well as flood insurance:
This might not come as a surprise, given that St. Louis home sales experienced a nearly 20% decline in the past 12 months compared to the previous year, coupled with 30-year fixed-rate loan interest rates approaching 7%. However, mortgage loan originations in St. Louis during the first quarter of this year have reached their lowest level since ATTOM Data began tracking them in the first quarter of 2000. As depicted in the chart below, both home purchase mortgages and total mortgage originations (including purchases and refinances) hit record lows in the first quarter of this year.
During the first quarter, the St. Louis MSA recorded 4,733 mortgage originations, marking a 45% decrease from the previous quarter’s 8,666 originations, and a 54% decrease compared to the same quarter in the previous year when 10,410 mortgages were originated for home purchases
St Louis MSA Mortgage Originations Q1 2000 – Q1 2023 (Chart)
Today, the U.S. Court of Appeals for the Seventh Circuit denied a motion by the National Association of REALTORS® (NAR) and other defendants in the Moehrl v. The National Association of Realtors lawsuit. The motion sought to appeal the decision certifying this case as a class action lawsuit. As a result of this denial, the lawsuit will be allowed to proceed.
Click here or on the image below to see the full ruling.
First and foremost, let me emphasize that home selling methods and practices are not a “one size fits all” approach. There are certainly situations where a different or unique strategy is required, including, in extreme cases, one that may not be in the seller’s best financial interest but favors a higher priority for the seller. For instance, I once handled a home sale for a woman with a stalker ex-husband who wanted her home sold discreetly – no sign, no ads, no MLS, etc. In her case, privacy and conducting the sale “under the radar” for her personal safety were more important than money. This article addresses the broader market and my opinion will apply to most sellers looking to sell their homes.
Now, let’s discuss an “office exclusive” listing.
Understanding this concept is a great starting point and highlights one of the reasons I’ve been writing articles about St. Louis real estate, St. Louis REALTORS®, and the St. Louis real estate industry. I believe that, in general, consumers lack sufficient knowledge about these matters to make the best choices for themselves when selecting agents to work with. As a result, I aim to share the insights I’ve gained from over 40 years in the industry. For example, most non-agent readers may not know what an “office exclusive” listing entails or whether it’s advantageous or disadvantageous for them as sellers. So, what is an office exclusive listing? In short, it’s a listing that the agent will “keep secret” to a large extent, only informing agents within their real estate brokerage and withholding your listing from the REALTOR® Multiple Listing System (MLS). Consequently, your listing will not be distributed to the thousands of websites that obtain listing information from the MLS (Zillow, Realtor.com and StLouisRealEstateSearch.com?agent_id=02107 to name a few).
