Demystifying Aluminum Wiring for Homebuyers: Insights from Industry Expert Mike Ragan

In a recent informative video, Mike Ragan, a master electrician, and owner of R&M Electric in St. Charles MO, dispels several myths surrounding aluminum wiring, a subject that often causes apprehension among prospective homebuyers in the St. Louis area. With over 18 years of experience specializing in residential wiring and troubleshooting, Ragan brings a wealth of knowledge to the discussion. He offers crucial insights for anyone considering the purchase of a home equipped with aluminum wiring, providing a fresh perspective on what has traditionally been viewed as a potential dealbreaker.

Ragan assures homebuyers, “Aluminum wiring is not necessarily a bad thing,” explaining that “if things are done correctly using the aluminum wiring, that it’s not dangerous.” He addresses the common fear surrounding aluminum wiring, which stems from its susceptibility to oxidation and the associated risks of overheating and fire hazards in older installations from the 1970s. However, he clarifies that with the correct installation and maintenance procedures in place, aluminum wiring is not inherently dangerous. Key to the safe use of aluminum wiring is the application of specific products like deoxidizing agents and the use of aluminum-rated devices, which prevent oxidation and ensure secure connections.

Moreover, Ragan highlights budget-friendly solutions for addressing aluminum wiring concerns, such as aluminum-rated connections or AlumiConn® connectors, whereby “you can significantly save money by going with the connections… less than half the cost by going through and redoing all the connections.” He strongly recommends that buyers considering a property with aluminum wiring engage a licensed electrician familiar with these issues to conduct a thorough inspection, thereby ensuring the wiring’s integrity and compliance with safety standards.

This dialogue not only educates homebuyers about the realities of aluminum wiring but also reassures them that, with proper attention and maintenance, homes equipped with aluminum wiring can be a safe, viable option. He says, “I would have no problem buying an aluminum wired house if the things we talked about were done correctly.” Ragan’s expertise offers practical guidance for navigating concerns related to aluminum wiring, empowering homebuyers to make informed decisions about their potential purchases.


Interview with St Louis Master Electrician Mike Ragan about Aluminum Wiring Concerns

St. Louis Metro Area Shrinks as Residents Flee Urban Core

The St. Louis Metro Area saw a continued population decline according to the latest U.S. Census Bureau estimates, which show the region’s population decreasing from 2,820,285 in April 2020 to 2,796,999 as of July 2023. This represents a loss of 23,286 residents, or a 0.83% decrease over the three-year period.  Looking at the one-year change, the St. Louis MSA population fell by 3,246, or 0.12%, from 2,800,245 in July 2022 to 2,796,999 in July 2023. Despite these decreases, St. Louis maintained its position as the 21st largest MSA nationally from 2020 to 2023.

Drilling down to the county level reveals that the population decline was not evenly distributed across the MSA. St. Louis County, the most populous county in the metro area, saw its population drop from 1,004,305 in April 2020 to 987,059 in July 2023, a loss of 17,246 residents or a 1.72% decrease. The City of St. Louis experienced an even sharper decline, falling from 301,565 to 281,754 over the same period, a decrease of 19,811 or 6.57%.

In contrast, some outlying counties in the MSA saw population growth. St. Charles County, the second most populous county in the region, grew from 405,271 in April 2020 to 416,659 in July 2023, an increase of 11,388 or 2.81%. Jefferson County’s population also increased, albeit more modestly, from 226,569 to 231,230, a gain of 4,661 or 2.06%.

Other Missouri counties in the MSA saw mixed results. Franklin County’s population rose from 104,689 to 106,404, an increase of 1,715 or 1.64%, while Lincoln County saw strong growth, increasing from 59,578 to 64,699, a gain of 5,121 or 8.59%. However, Warren County had a more moderate increase from 35,528 to 37,806, a growth of 2,278 or 6.41%.

In Illinois, the counties included in the St. Louis MSA also experienced population declines. Madison County’s population fell from 269,484 to 266,368, a loss of 3,116 or 1.16%, while St. Clair County saw a decline from 259,686 to 253,292, a decrease of 6,394 or 2.46%. Monroe County, however, remained relatively stable, with a slight increase of 4 residents or 0.02%, from 34,962 to 34,966.

The data shows that the St. Louis MSA’s overall population decline of 0.83% from 2020 to 2023 was driven largely by significant decreases in the core city of St. Louis (-6.57%) and St. Louis County (-1.72%), as well as declines in the Illinois counties of Madison (-1.16%) and St. Clair (-2.46%). While some suburban and exurban counties experienced population growth, such as Lincoln County (8.59%) and St. Charles County (2.81%), it was not enough to offset the losses in the urban core and Illinois portion of the MSA. This pattern of population shifts from urban to suburban/exurban areas within metro areas has been observed in many other regions across the country in recent years.


St Louis MSA Population Change 2020-2023 By County

County 2020 Population 2023 Population Change % Change
St. Louis County, MO 1,004,305 987,059 -17,246 -1.72%
St. Charles County, MO 405,271 416,659 11,388 2.81%
St. Louis City, MO 301,565 281,754 -19,811 -6.57%
Madison County, IL 269,484 266,368 -3,116 -1.16%
St. Clair County, IL 259,686 253,292 -6,394 -2.46%
Jefferson County, MO 226,569 231,230 4,661 2.06%
Franklin County, MO 104,689 106,404 1,715 1.64%
Lincoln County, MO 59,578 64,699 5,121 8.59%
Warren County, MO 35,528 37,806 2,278 6.41%
Monroe County, IL 34,962 34,966 4 0.02%

 

St Louis MSA Population – 1970-Present

(click on chart for live, interactive chart)

St Louis MSA Population - 1970-Present

 

Zip Codes in the St Louis Metro Area Where Homes Are Selling the Fastest

The St. Louis Metropolitan Area continues to enjoy a fairly fast-paced sellers real estate market, with certain zip codes standing out for selling even faster than the current norm.  According to the report below, available exclusively from MORE, REALTORS®, homes in the top 30 zip codes are selling at an impressive rate, with average days on market ranging from just 2 to 24 days.
Leading the pack is zip code 63049 in Jefferson and St. Louis Counties, Missouri, where homes spend an average of only 2 days on the market. Close behind are zip codes in St. Clair County, Illinois (62258) and Madison County, Illinois (62010), with average selling times of 6 and 7 days, respectively.

Other notable fast-selling areas include zip codes in Warren County, Missouri (63380), St. Louis City, Missouri (63141, 63109, 63147, 63139), and St. Charles County, Missouri (63304, 63385, 63367, 63376). These areas demonstrate the high demand and quick turnover that characterize the St. Louis real estate market.

For buyers, this data highlights the need to act quickly when a desirable property becomes available. Sellers, on the other hand, can take advantage of the fast-paced market to sell their homes efficiently and potentially secure a favorable price.

Understanding the dynamics of these fast-selling zip codes is crucial for anyone navigating the St. Louis real estate landscape. By staying informed and working with experienced professionals, both buyers and sellers can make the most of the opportunities presented by this thriving market.  Want to meet some of St Louis’ finest agents?  Then check them out here.


Fastest Selling Zip Codes In The St Louis MSA

(Click on table below to see current, live and complete list)

Fastest Selling Zip Codes In The St Louis MSA

City Commons: St. Louis’s Emerging Neighborhood Identity

In downtown St. Louis, a significant transformation is taking place, not just in the physical landscape but in the very identity of a burgeoning neighborhood. An ambitious initiative led by a consortium of developers aims to rebrand a key area surrounding the new CityPark, home of the St. Louis City SC, as “City Commons.” This endeavor seeks to establish a distinct identity for the neighborhood, distinguishing it from the broader downtown area. CityPark, a $460 million stadium, along with over $1 billion in surrounding developments, serves as the catalyst for this rebranding effort. The objective is to create a vibrant live-work-play district that encapsulates the essence of community and innovation.

The push to designate this area as City Commons reflects a strategic effort to brand and market the neighborhood as a unique destination within St. Louis. Recognizing the city’s residents’ attachment to neighborhood identities, the developers are harnessing this cultural trait to foster a sense of belonging and pride among locals and visitors. The naming initiative represents more than just a cosmetic change; it’s about crafting a narrative that resonates with the vibrancy and diversity of St. Louis itself. By reimagining the neighborhood as City Commons, the developers are not only aiming to attract investment and development but also to create a cohesive community identity that reflects the area’s renewed purpose and potential.


The Risks of Split Closings in St. Louis: What Buyers and Sellers Need to Know

In the St. Louis real estate market, ‘split closings’—where buyers and sellers close at different title companies—are a common practice. This is in contrast to most parts of the country, where a single title insurance company manages the closing for both parties. Although rare nationally, split closings have become a hallmark of the St. Louis real estate scene.

In a split closing, each title company plays a distinct role. The buyer’s title company is typically responsible for producing the title insurance commitment, ordering buyer-related items (like surveys), and coordinating with the new lender on figures and requirements. Conversely, the seller’s title company takes the commitment from the buyer’s title company and assists the seller in clearing any liens, checking for assessments and specials, and verifying commission and earnest money. Each company then prepares a closing statement for their side, and the two companies reconcile the figures.

Despite being the norm in St. Louis, split closings come with their share of risks and inconveniences. To gain a deeper understanding of these challenges, I consulted Greg Miller, Manager at M&I Title, LLC. He outlined the most common risks and inconveniences stemming from split closings:


Risks and Inconveniences of Split Closings

  • Potential Miscommunication: The division of responsibilities between two title companies can result in crucial information getting lost or misinterpreted. For example, discrepancies in settlement figures or misunderstanding regarding the readiness of documents can cause significant delays.
  • Difficulty in Resolving Issues: On the day of closing, last-minute hurdles such as undiscovered liens, discrepancies in documents, or issues arising from the final walkthrough can be more cumbersome. Each title company may have different procedures for handling these issues, complicating coordination and resolution efforts.
  • Delayed Seller Proceeds: For sellers, this delay means that the proceeds from the sale may not be available on the day of closing. This is particularly problematic for sellers who are relying on these funds to purchase another home simultaneously. The absence of timely proceeds can disrupt the entire chain of transactions, potentially leading to breaches of contract or the need for temporary, and often costly, financial arrangements.
  • Buyer Possession Issues: Buyers, on the other hand, may face delays in gaining possession of their new home. Since a real estate transaction is not considered closed until it is fully funded and the deed has been delivered to the buyer, any delay in these processes means the buyer technically does not own the home. This could result in the buyer being unable to move into their new home as planned, leading to additional costs or complications, especially if they have already vacated their previous residence.
  • Increased Costs: Sellers may face additional fees for closing services, courier charges for document transfers, and possibly higher coordination fees due to the involvement of an additional title company. These costs can vary widely and may also impact buyers if contractually passed on.
  • Wire Fraud Vulnerability: The exchange of sensitive financial information between multiple parties increases the risk of interception by cybercriminals. The complexity of communication can make it easier for fraudulent wire transfer instructions to go unnoticed until too late.

Additional Considerations

  • Privacy Concerns: With two title companies involved, sensitive personal and financial information is shared more broadly, increasing the risk of data breaches or unauthorized access.
  • Complex Coordination for Agents and Lenders: Real estate agents and lenders must navigate communication between two companies, adding complexity to their roles and potentially straining relationships with clients due to unforeseen delays or issues.
  • Risk of Non-Compliance: Each title company may interpret regulatory requirements slightly differently. This divergence can lead to compliance issues, affecting the legality of the closing process and potentially exposing all parties to legal risks.
  • Customer Service Variability: With two companies involved, the level of customer service can vary, potentially leading to a disjointed experience for both buyer and seller. Inconsistent communication or service levels can increase stress and dissatisfaction with the process.

By understanding these expanded issues and additional considerations, professionals and clients in the St. Louis real estate market can better prepare for the complexities of split closings. Strategies such as enhanced communication protocols, clearer contractual agreements regarding responsibilities and fees, and increased vigilance against fraud can mitigate some of these challenges.


 

St. Louis MSA’s Population Dynamics Over 50 Years

As the table and charts below illustrate, the St. Louis Metropolitatn Area (MSA) has undergone significant demographic shifts over the past 50 years, marked by a stark contrast between the population trends in the City of St. Louis and its surrounding counties.

St Louis MSA and Major Counties Population 1970-2022

St Louis MSA Population 1970-Present Table

The decline in the City of St. Louis’s population sharply contrasts with the growth in surrounding counties. During the same period that St. Charles County witnessed a 345% increase and the St. Louis MSA as a whole saw nearly a 60% rise, the City of St. Louis experienced nearly a 70% drop in population.

Over the last 50 years, the St. Louis MSA has undergone significant shifts in its population, characterized by substantial declines in the City of St. Louis and remarkable growth in suburban counties. This trend can largely be attributed to a combination of factors, including urban blight, which is characterized by the deterioration and abandonment of buildings, leading to a diminished quality of life and decreased property values. The escalation of crime rates further compounded the city’s challenges, rendering it less appealing for families and individuals in search of safe, stable environments. Furthermore, governance issues, marked by inefficient public services and policies that failed to effectively address the needs of urban residents, have also contributed to the population decline. These factors, coupled with the allure of suburban living—offering more spacious living conditions, better educational facilities, and a perceived higher level of safety—have propelled the demographic shift away from the city center and towards the suburbs.

St Louis MSA and City of St Louis Population – 1970 – 2022 Chart

(click on chart for live interactive chart)

St Louis MSA and City of St Louis Population - 1970 - 2022 Chart

St Louis Major Counties Population- 1970 – 2022 Chart

(click on chart for live interactive chart)

St Louis Major Counties Population- 1970 - 2022 Chart


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Newly Released Consumer Report Examines Buyer Agency Contracts Citing Unfair Provisions

A report titled “Required Buyer Agency Contracts: Impacts On Home Buyers” was recently released by Stephen Brobeck, Senior Fellow with the Consumer Federation of America. In the introduction, Brobeck states, ‘This report will discuss several aspects of buyer agency contracts – important content, unfair provisions, format and timing, and recommended use by consumers.’ He suggests that state governments or the courts should prohibit certain unfair practices, such as allowing ‘buyer agents to arrange, with listing agents, additional compensation from sellers beyond what is negotiated with buyers,’ stating that such practices could ‘thwart any efforts to sufficiently separate buyer agent and listing agent commissions so that both buyers and sellers can independently negotiate the commissions of their agents.’

The Consumer Federation of America (CFA), and specifically Stephen Brobeck, have been notably critical of the National Association of Realtors (NAR) for some time, so it’s not surprising they have issued this report to sound the alarm on buyer agency agreements. While the CFA is not always critical of NAR or the real estate industry’s practices, my observations over the last few years suggest they often focus on criticizing unfair or unjust practices rather than commending good ones. After all, as a consumer watchdog, it’s likely they spend more time looking for problems to address. Despite my lifelong career in the real estate industry, I also take a hard look at it, always seeking areas for improvement.


I went through the report and here is my summary of the major issues it points out, along with my thoughts on each. My section headings match those in the report for those who want to explore further.

  • Supplemental Buyer Agent Compensation: The report criticizes situations where a listing agent offers a buyer’s agent commission higher than what the buyer’s agent negotiated with the buyer, keeping the difference. It argues this is unfair and that any excess should benefit the buyer, not the agent. In St. Louis, the standard REALTOR® buyer agency contract specifies a “minimum commission” for the buyer’s agent, usually covered by the seller through the listing agent. With upcoming changes potentially prohibiting sellers from offering compensation to buyer’s agents, this dynamic might shift, but currently, it seems less of a concern here.
  • Unreasonable Fees: The report labels “administrative” or “transaction” fees, typically ranging from $200 to $900, as “junk fees” and unjustifiable given today’s high commission rates. My view is mixed. On one hand, I prefer a single, comprehensive charge for services; on the other, a fixed transaction fee could help normalize returns from variable commissions. These fees shouldn’t be blanketly labeled as unfair; total cost for representation should provide fair value, regardless of its structure.
  • Requiring Buyer Acceptance of Dual Agency, Designated Agency, or Transaction Brokerage: The report criticizes agreements that pre-emptively commit buyers to accept a change in their agent’s role to a dual agent, designated agent, or transaction broker. I concur on dual agency and transaction brokerage concerns but not on designated agency, as it doesn’t alter the buyer’s agent role but designates them for a specific client within a firm. In our firm, MORE, REALTORS®, we advise against dual agency and switching to transaction brokerage, emphasizing consistent representation and fiduciary duty.
  • Not Explaining How Conflicts of Interest Involving Other Buyer Clients Are Resolved: The report points out the lack of clarity in most buyer’s agency contracts on how conflicts of interest with multiple buyers interested in the same property are managed. I agree and believe that with industry changes, including buyers directly paying agents, there will be demand for clearer conflict resolution strategies and perhaps exclusivity agreements, provided they are narrowly defined to prevent conflicts without overly restricting the agent’s business.

An upside to the recent litigation spotlighting the real estate industry is the emergence of reports and analyses that, though not always accurate or impartial, spotlight key issues and foster a more transparent environment for consumers. I personally view this shift toward greater transparency and consumer understanding of the real estate process as one of the major benefits of the industry’s forthcoming changes. Better-informed consumers will be equipped to more thoroughly evaluate the qualifications of the agents they choose to work with. This, in turn, will benefit dedicated and professional agents, while naturally filtering out those who lack the necessary knowledge, ethics, or comprehension to thrive in the business.

Facing New Rules: NAR and DOJ Clash Over Buyer’s Agent Commission Policies – What It Means for You

Kevin Sears,
2024 NAR President

At a real estate conference in Boston on February 1, 2024, NAR President Kevin Sears addressed a pressing issue facing the National Association of Realtors (NAR) and its members. Sears candidly discussed the aftermath of a $5.4 billion verdict against NAR, drawing parallels to a sports scenario to highlight the disappointment of a loss despite believing in the righteousness of their policy and actions. He emphasized the importance of moving forward, focusing on the legal appeals process and the ongoing challenges with the Department of Justice (DOJ), which has been a persistent adversary for NAR.

Sears detailed the history of NAR’s interactions with the DOJ, including a settled agreement in 2020, which the DOJ later contested, leading to further legal battles. He highlighted a specific case involving MLS Property Information Network (MLS PIN) in Massachusetts, which faced a “copycat lawsuit” and encountered DOJ objections to settlement agreements, underscoring the DOJ’s significant influence on the real estate industry’s operations.

Kevin Sears provided a comprehensive overview of the National Association of Realtors’ (NAR) complex and ongoing interactions with the Department of Justice (DOJ), painting a picture of an enduring legal struggle that has deep implications for the real estate industry. He began by recounting a pivotal moment in 2020 when NAR reached a settlement agreement with the DOJ, a moment that seemed to mark the beginning of a resolution to their disputes. However, this sense of resolution was short-lived as the DOJ later contested the terms of the agreement, reigniting a series of legal challenges that have since persisted.

Sears’ narrative then shifted focus to a more recent and illustrative example of these challenges: the case involving the MLS Property Information Network (MLS PIN) in Massachusetts. This particular case, described by Sears as a “copycat lawsuit,” mirrored the broader issues at stake between NAR and the DOJ. The lawsuit led to a proposed settlement agreement between MLS PIN and the plaintiff’s attorneys, which, in a turn of events characteristic of the DOJ’s recent interventions, faced objections from the DOJ. The federal department’s refusal to endorse the settlement underscored its readiness to closely scrutinize and influence the outcomes of legal disputes in the real estate sector.

Through these examples, Sears emphasized the DOJ’s significant and active role in shaping the operational landscape of the real estate industry. He highlighted the DOJ’s apparent commitment to altering traditional practices within the industry, particularly those related to the compensation of buyer’s agents through commissions offered by sellers. This ongoing legal saga between NAR, its members, and the DOJ not only reflects the complexities of antitrust law in real estate but also signals a potentially transformative period for industry practices and professional relationships.


 

Key Points Made by Kevin Sears:

  • Acknowledged the $5.4 billion verdict against NAR, emphasizing the need to move forward through legal appeals and post-trial motions.
  • Highlighted the longstanding challenges with the DOJ, including a contested settlement and ongoing legal disputes.
  • Discussed the specifics of a lawsuit involving MLS PIN in Massachusetts, illustrating the DOJ’s active role in scrutinizing industry practices and settlements.
  • Stressed the importance of adapting to changes in the real estate industry, particularly regarding how businesses operate and how realtors are compensated.
  • Urged the audience to consider the future of the industry and the necessity of embracing change, whether willingly or as a result of external pressures.

The Impact of Credit Scores on St. Louis Real Estate Decisions

Whether you’re looking to buy or rent a home, your credit score is more than just a number—it’s a gateway to your future residence. A recent survey by LendingTree has shed light on the significant role credit scores play in Americans’ access to financial products, including those crucial for securing a home. Here’s a recap of the findings and their implications for the St. Louis real estate market.

Key Findings:

  • High Denial Rates: 42% of Americans reported their credit scores prevented them from obtaining a financial product in the past year, with this figure soaring to 74% among those with poor credit. For St. Louis residents, this could mean increased challenges in securing mortgages or rental agreements.
  • Credit Cards and Personal Loans: The top products consumers were denied due to their credit scores were credit cards (25%) and personal loans (12%). While not directly related to real estate, these denials can impact one’s ability to consolidate debt or cover moving expenses, indirectly affecting home buying or renting capabilities.
  • Perception of Financial Responsibility: 40% of Americans believe their credit scores do not accurately reflect their financial responsibility. This sentiment is even higher among those with poor credit (60%), millennials (47%), and women (44%). For potential homebuyers or renters in St. Louis, this discrepancy could lead to frustration and barriers in the housing market.
  • Payment History’s Importance: Despite being the most crucial factor in credit score calculations, 50% of Americans are unaware that payment history holds the most weight. This lack of knowledge can lead to missed opportunities for improving credit scores and, by extension, securing better terms for mortgages or leases.
  • Improving Credit Scores: The survey revealed that paying off debt was the primary method for improving credit scores over the past year. For St. Louis residents, understanding and applying this knowledge can be a strategic move towards enhancing eligibility for home buying or renting.


Implications for St. Louis Real Estate:
The survey’s insights highlight a critical barrier to homeownership and renting: the impact of credit scores on financial product accessibility. For St. Louis real estate professionals and potential homebuyers or renters, this underscores the importance of credit education and management as foundational steps towards achieving housing goals.

  • Educational Opportunities: Real estate professionals, such as the Masters of Real Estate at MORE, REALTORS®, can provide valuable guidance to clients on improving credit scores, emphasizing the role of payment history and debt management.
  • Strategic Planning: Understanding the weight of credit scores in financial decisions can help potential buyers or renters in St. Louis develop strategies to improve their scores before applying for mortgages or leases.
  • Market Accessibility: For those with poor credit, exploring alternative financing options or seeking professional credit counseling could open doors to the real estate market that might otherwise remain closed.

In St. Louis, as in the rest of the country, a strong credit score is more than just a number—it’s a key that unlocks the door to future housing opportunities. The recent LendingTree survey provides a basis for understanding the challenges and strategies related to credit scores in the real estate market. By focusing on credit education and management, St. Louis residents can navigate these challenges more effectively, making the dream of buying or renting a home more attainable.

 

2024’s Top Paint Colors: Boost Your St. Louis Home’s Appeal

In 2024, the focus for homeowners is clear: refreshing interiors with colors that offer both a sense of calm and a reflection of personal style. The 2024 Paint & Color Trends Report from FIXr reveals a shift towards warm, earthy tones and nature-inspired hues, designed to transform homes into serene havens. Greens, blues, bright yellows, and deep olives are set to dominate, promising spaces that not only stand out but also provide an escape from the daily grind. This year, it’s all about bringing the tranquility of the outdoors inside, with a nod to personal expression through bold color choices.

The report, a comprehensive guide compiled with insights from top industry experts, serves as a valuable resource for anyone looking to update their home. It underscores the importance of creating environments that are not just visually appealing but also emotionally resonant. For St. Louis residents contemplating a home makeover, this guide offers a wealth of information, from the most sought-after colors to tips on enhancing home value and personal comfort. It’s an invitation to rethink your space, ensuring it reflects the latest trends while catering to your unique taste and lifestyle.

For those interested in exploring the full spectrum of 2024’s paint and color trends, the complete report is accessible below for in-depth review. It’s an essential read for homeowners aiming to infuse their spaces with the year’s most captivating and soothing colors.


2024 Paint & Color Trends Report

(click image below to access complete report in PDF form)

2024 Paint & Color Trends Report

St Louis Metro Area Real Estate Market Report for January 2024 with accurate data you can trust

The St. Louis Metro Area Real Estate Market Report for January 2024, presented below, provides an overview of the 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 Metro Real Estate Report for January 2024

(click on infographic for complete report including all counties in the St Louis Metro Area)St Louis Metro Real Estate Report for January 2024

Consumer Confidence in Mortgage Rates Soars, Marking a Positive Shift in Housing Sentiment for 2024

The latest release from Fannie Mae on the Home Purchase Sentiment Index® (HPSI) is particularly illuminating, showing a notable uptick in consumer optimism towards mortgage rates. For the first time since March 2022, the HPSI has climbed to 70.7, a 3.5-point increase driven largely by heightened confidence in job security and an unprecedented share of consumers expecting mortgage rates to dip in the coming year. This optimism isn’t just numbers on a page; it’s a palpable shift in the air, with 82% of respondents now feeling secure in their employment prospects, and an all-time survey high of 36% predicting lower mortgage rates ahead. Yet, despite this optimism, the stark reality remains that only 17% believe it’s a good time to buy a home, underscoring a persistent pessimism around purchasing conditions.


 

Fannie Mae Home Purchase Sentiment Index Chart

(click on chart for current, live-interactive chart)

Fannie Mae Home Purchase Sentiment Index Chart

St. Louis Housing Affordability Increases Slightly In Last Quarter of 2023

The latest figures from the NAHB/Wells Fargo Housing Opportunity Index reveal that 70.8% of people in the St. Louis MSA, with a median income of $101,200, could afford to buy a median-priced home. This percentage has seen a slight increase from the 3rd quarter of 2023, when it was 69.3%. As demonstrated in the chart below, this positions St. Louis as the 31st most affordable metro area for home purchases, out of the 242 that were ranked.

  

St Louis MSA Housing Affordability & National Rank (2014-2023)

St Louis MSA Housing Affordability & National Rank (2014-2023)

Home Ownership Rate in St. Louis Metro Area Fell to Lowest Level in Four Years in 2023

The latest home ownership data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) reveals that the ownership rate in the 4th quarter of last year was 69.5%, a decline of over 2 full percentage points from the same quarter in the previous year. The Census Bureau reports home ownership rates on a quarterly basis, and the average rate for 2023 in the St. Louis metro area was 69.5%. This marks the lowest average homeownership rate for St. Louis since 2019, when it was 68.1%. The homeownership rate reached a recent peak in St. Louis in 2021, registering at 73.8%.

 

 

St Louis Metro Area Home Sales Fall to Lowest Level in 9 Years

As 2023 drew to a close, the St. Louis metro real estate market concluded the year with a total of 31,747 homes sold. As highlighted in the chart below, this figure represents the lowest annual home sales in the St. Louis MSA in nine years, since 2014, when the total was 31,531 homes sold.

Home prices in the St. Louis MSA have shown more resilience than sales volumes. As 2023 came to a close, the 12-month median home price per foot stood at $169, marking a 5% increase from the previous year. This trend provides a stark contrast to the sales figures. Over the past nine years, while the number of homes sold initially rose, it eventually reverted to levels seen nine years ago. In contrast, the median price per foot for homes sold has witnessed a substantial increase of over 74%, soaring from $97 per foot to $169 per foot.


12-Month Home Sales and Price Trend For the St Louis MSA For the Past 15 Years

(click on chart for live, interactive chart)

12-Month Home Sales and Price Trend For the St Louis MSA For the Past 15 Years

St. Louis Retirement Real Estate: A New Era According to Latest Report

Home in Retirement: More Freedom, New ChoicesIn the St. Louis real estate market, understanding the choices of retirees is crucial. The Merrill Lynch-Age Wave report, “Home in Retirement: More Freedom, New Choices,” offers valuable data-driven insights. It reveals a significant shift in retirees’ housing preferences, with a focus on lifestyle-driven relocation rather than just downsizing.

Key Insights:

  • Renovation Trends: Retirees are increasingly focusing on home renovations to improve comfort and safety. This trend is driven by the desire to age in place comfortably, adapting their living spaces to suit changing mobility and health needs, as well as to accommodate visits from family and friends.
  • Financial Stability through Homeownership: The report indicates that home equity is a significant aspect of retirees’ financial security. Many retirees own their homes outright, providing a stable financial base and the possibility of leveraging this equity for additional income or security in retirement.
  • Community and Location Preferences: Retirees show a growing preference for living in age-specific communities or areas with desirable amenities and climates. This shift is influenced by the desire for social interaction with peers, access to health care and recreational activities, and the appeal of living in a more comfortable and suitable environment for their lifestyle needs.

At MORE, REALTORS®, we recognize the unique real estate needs of the senior market in St. Louis. Our team includes several agents specialized in this sector, having undergone extensive training to acquire specialized designations such as Certified Senior Advisor® (CSA), Seniors Real Estate Specialist® (SRES), Certified Senior Housing Professional, and Certified Downsizing Coach. These qualifications equip us to offer tailored services and advice to retirees, ensuring they make informed decisions that align with their lifestyle, comfort, and financial goals. Our expertise positions us as a trusted partner for seniors navigating the St. Louis real estate market.

For a complete understanding of these trends, the entire report is available for review.


 

 

Exploring the 2024 Rental Affordability Report: Insights for the St. Louis Real Estate Market

Today, ATTOM released its ‘2024 Rental Affordability Report,’ presenting a comprehensive analysis of the current state of home rental and ownership in the United States. The report indicates that renting a median three-bedroom home is more affordable than owning a similarly-sized property in nearly 90% of the U.S. markets. This trend continues despite rents growing faster than home prices. A significant finding for our industry is that both renting and owning pose substantial financial burdens on average workers, consuming over a third of their wages in most county-level housing markets.

Data for St. Louis County is consistent with the report.

Since the report covered only counties with a population of 1 million people or greater, St. Louis County was the sole county from our area included.  The report highlights that in St. Louis County, MO, renting remains more affordable compared to owning. This reflects the national trend, with median three-bedroom rents requiring only 24% of average local wages compared to higher percentages for home ownership costs. It’s worth noting that the affordability gap between renting and owning in St. Louis County is much narrower than in many counties in the U.S., particularly coastal areas.

Things may change soon though based upon trends shown.

The report reveals that in 2024, median rents for three-bedroom homes have risen more than single-family home prices in a majority of counties. This indicates a shift in the rental market dynamics, emphasizing the growing challenge for renters in finding affordable housing.


Rent vs. Wage Growth

An alarming trend noted in the report is that median three-bedroom rents are increasing faster than average local wages in over half of the markets analyzed. This disparity is a crucial factor contributing to the affordability crisis, as it indicates that wage growth is not keeping pace with rising housing costs.

Buying a Home: Long-Term Certainty vs. Short-Term Instability.

For those who have been following my articles over the past few years, I hope you’ve realized that I don’t blindly advocate for homeownership. I recognize that owning a home isn’t the best choice for everyone. In many cases, renting a home or an apartment is a better fit. However, considering the details in this report, it’s clear why buying a home can be advantageous for those in a position to do so. It offers the long-term certainty of fixed costs, contrasting sharply with the volatility of the rental market. This contrast is especially pertinent in light of the report’s findings that rent increases are outstripping wage growth.

Understanding Your Real Estate Options

At MORE REALTORS®, we pride ourselves on having a team of some of the most skilled and professional real estate agents in the St. Louis area. Our agents are dedicated to providing informed guidance tailored to each individual’s needs. Whether you’re considering buying or leasing, we’re here to offer insights and assistance based on your unique situation. For more information about our agents and the services we offer, please visit morerealtors.com. Alternatively, you can contact me directly at Dennis@STLRE.com, and I’d be happy to connect you with one of our knowledgeable real estate professionals.


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

The St. Louis Metro Area Real Estate Market Report for December 2023, presented below, provides an overview of the 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 Metro Real Estate Report for December 2023

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

Real Estate’s Game Changer: Decoding the Latest Twists in the Sitzer Saga

Since the suit was first filed in 2019, I’ve been following the the Sitzer v. National Association of REALTORS® case closely and sharing my thoughts on the potential impact it could have on the real estate industry, as well as on home buyers and sellers. This task has been far from dull, as the litigation has been filled with action, especially since the Missouri jury’s ruling in favor of the plaintiffs in October. The past week has seen an increase in legal activity from the defendants, making the situation even more intense. Below is a breakdown of the latest events and their implications, from my perspective (bear in mind, I’m not an attorney, just a real estate broker):


Key Motions Filed:

  • National Association of Realtors Seeks a New Trial: This motion contests the fairness of the original trial, highlighting potential procedural and evidentiary errors that might have skewed the jury’s decision.
  • Calls for Judgment as a Matter of Law: Various defendants, including Keller Williams and BHH Affiliates, have challenged the verdict based on the argument that it contradicts the evidence presented. They point to possible legal oversights, such as flawed jury instructions.
  • Questioning the Class Action Status: A notable move by BHH Affiliates and HomeServices of America, this motion disputes the class action’s suitability, arguing that individual differences overshadow commonalities crucial in such lawsuits.

Analyzing the Legal Landscape:

  • The Frequency of Post-Verdict Motions: In complex cases like this, it’s quite typical for defendants to pursue motions for a new trial or a judgment reversal. These legal steps, while common, underscore the high stakes involved, especially in a sector as impactful as real estate.
  • Prospects of These Motions: Historically, the success of such motions varies. They can occasionally lead to new trials or judgment alterations. However, overturning a jury’s decision is often a challenging hill to climb, given the U.S. legal system’s respect for jury findings. These motions are more likely precursors to an appeal.
  • Real Estate Industry at a Crossroads: The decisions on these motions are critical. Their outcomes could prompt significant changes in how real estate transactions are conducted, especially regarding agent commissions and competitive practices.

What Does This Mean for Home Buyers and Sellers?

Now, you might be wondering, “All this legal talk is great, but how does it affect me as a home buyer or seller?” Well, I have some thoughts on that as well:

  • Changes in Commission Structures: The heart of the Sitzer case is about how real estate commissions are handled. Depending on the outcome, we might see a shift in how agents are paid. This could mean more flexibility or different options when it comes to commission rates.
  • Increased Transparency: The case also touches on transparency in real estate transactions. We could be looking at a future where there’s more clarity on how agents operate, which means you, as a buyer or seller, would have a clearer picture of what you’re getting into.
  • Potential for More Competitive Pricing: If the verdict leads to changes in how commissions are structured, this could open the door for more competitive pricing in the real estate market. It could mean better deals for buyers and more options for sellers.

In short, this trial isn’t just about big real estate companies; it’s about potentially changing the playing field for everyone involved in buying or selling a home. It’s about making sure that the process is fair and transparent for you, the consumer. So, stay tuned – the decisions made in this courtroom could be game-changers for how we buy and sell homes.

Compilation of Motions Filed In The Past Week in Sitzer v NAR

(click below to access the document containing all the motions filed)

Compilation of Motions Filed In The Past Week in Sitzer v NAR


 

St. Louis Housing Market Sees Shift: Key Insights from 2023 Year-End Data

The “STL Market Report,” below exclusively available from MORE, REALTORS, provides a comprehensive look at the St. Louis residential real estate market as 2023 ended. This report outlines a mixed array of trends, highlighting a notable decline in the number of homes sold contrasted with a modest increase in median sold prices, offering in-depth knowledge for prospective buyers and sellers to navigate the market.

Decrease in Home Sales Volume
The St. Louis metro area witnessed a noticeable reduction in the volume of home sales year-over-year. A total of 31,704 homes were sold in the year ending December 2023, which marks a 13.13% decrease compared to the previous year’s figure of 36,498. This drop could signal a shift toward a buyer’s market, as fewer transactions typically indicate less competition among buyers.

Modest Rise in Home Prices
Despite the decrease in sales volume, St. Louis saw a modest increase in home prices. The median sold price for homes rose by 2.04% from $245,000 in December 2022 to $250,000 in December 2023. This growth, although not steep, suggests that home values in the region continue to appreciate, offering a silver lining for homeowners looking to sell.

Price Per Square Foot Analysis
The median price per square foot (PPSF) for sold homes remained relatively stable at $173.08 in December 2023, a slight decrease compared to the median PPSF for current listings at $171.87. However, a significant point to note is the 11.02% drop in PPSF for current listings compared to the sold listings from the past 12 months, indicating a possible adjustment in market expectations.

Inventory and Market Supply Dynamics
St. Louis’s home inventory levels also present an interesting narrative. With 2,956 listings currently up for sale and 2,348 homes sold last month, the market is experiencing a supply of approximately 1.26 months. This figure represents a brisk market that favors sellers, as a supply under 6 months typically does. However, it is important to monitor whether this inventory will rise or fall in response to changing market conditions.

Days on Market: A Consistent Pace
Homes in St. Louis are selling at a consistent pace, with the median days on market holding steady at 37 days. This indicates a stable demand for homes, with properties moving from listing to sale in just over a month on average.

What This Means for You
For sellers in the St. Louis area, the market still offers a favorable environment with steady prices and a relatively quick selling period. Buyers, on the other hand, might benefit from reduced competition, though they should be mindful of potential value appreciations.

 

STL Market Report – St Louis MSA

(click on report below for complete report)

STL Market Report - St Louis MSA

 

 

St. Louis 2024 Housing Forecast: What to Expect in Home Sales and Prices

As 2024 approaches, I conducted my customary in-depth analysis of historical St. Louis real estate market data to get my projection for St. Louis home sales and prices. Home sales in the five-county St. Louis core market appear to be gradually declining, based on statistics and trends from the previous ten years, as seen in the chart below

2024 St Louis Home Sales…

The data for the 12-month period ending December 31, 2023, will be available in a few days. I anticipate that home sales will be roughly 22,600 for the year, but there will be a slight decline by the end of 2024, bringing St Louis home sales down to about 22,400. This isn’t a huge drop (0.8%), but it is a noticeable change that could give buyers in the market a bit more leeway.

2024 St Louis Home Prices…

While home prices have been on the rise, the median price per square foot is increasing at a slower rate than in previous years. I anticipate St. Louis home prices will increase by only about 1% from their 2023 peak, reaching a peak in the summer of 2024 at approximately $196/foot, and then leveling off slightly, falling to around $184/foot by December 2024. It’s important to bear in mind that this type of fluctuation is common, whether you’re buying or selling. Prices are not falling dramatically, but they’re also not rising sharply. This follows a more consistent, dependable pattern. These are the trends to watch out for in the St. Louis market in 2024 if you’re in the game.

A little CYA…

It’s worth noting that the aforementioned estimates are based on the current economic conditions and patterns. Interest rates, inflation, and unemployment are just a few of the many factors that influence the economy, and even experts (who know a lot more than me) can’t always agree on where these trends are headed. As a result, any major shifts in these areas might significantly impact the direction of the St. Louis housing market in the upcoming year.


 

St Louis 5-County Core 12-Month Home Sale and Price Trend – Past 10 Years

(click on chart for live, interactive chart)St Louis 5-County Core 12-Month Home Sale and Price Trend - Past 10 Years

NAR’s Tumultuous Year: Insights and Implications for St. Louis Real Estate

The National Association of Realtors (NAR) is facing unprecedented difficulties, including antitrust lawsuits and charges of sexual harassment, according to a lengthy report published in the New York Times today by Debra Kamin. The analysis by Kamin offers a perceptive look at the internal turmoil and external challenges that NAR is facing.

The customary practice of listing agents paying buyers’ agents fees is called into question by a landmark lawsuit in Missouri that resulted in a $1.8 billion verdict against NAR. The report quotes Compass’s Jason Haber as saying, “This is an extinction-level event,” highlighting the seriousness of these occurrences. The situation is made more complicated by the exit of important NAR executives, like as President Kenny Parcell, amid allegations of sexual harassment. These developments could have a big effect on the real estate market, even in our St. Louis market.

Readers of St. Louis Real Estate News are familiar with my analyses on these issues over the past years. At MORE REALTORS®, we have been proactively addressing these industry changes. Our agents are well-informed and prepared for the evolving landscape, ensuring we stay ahead in the game.

Kamin’s article serves as a reminder of the ongoing transformation in the real estate sector. As we navigate these changes, our commitment at MORE REALTORS® remains steadfast: to uphold the highest ethical standards and adapt swiftly to serve our clients best in the St. Louis area.


St. Louis Real Estate Market Ending Year on High Note: Surge in Home Sales and Listings

In a remarkable end-of-year surge, the St. Louis real estate market has shown significant growth in both home sales and new listings, according to the latest reports below, available exclusively from MORE, REALTORS®.  The week of December 17-23, 2023, marked a notable increase in accepted contracts for home sales, jumping 26% compared to the same week in 2022. The rise was led by St. Louis County, which experienced an impressive 60% increase, indicating a robust demand in this area.

Simultaneously, new listings in the St. Louis area rose by 10%, with St. Charles County, in particular, witnessing a 31% jump in new properties hitting the market followed by Jefferson County with a 20% increase in new listings over the prior year.

This increase in listings, coupled with the growth in sales, suggests a continued good real estate environment as we head into the new year.


STL Real Estate Trends Report

New Accepted Contracts In the St Louis 5-County Core Market

(click on table for current, live data)

STL Real Estate Trends Report

STL Real Estate Trends Report

New Listings In the St Louis 5-County Core Market

(click on table for current, live data)

STL Real Estate Trends Report

Report Shows Average Wage Earner can Afford to Buy a Home In over half of the St Louis Areas Largest Counties

A report just released by ATTOM Data Research details housing affordability for the largest counties in the St. Louis metro area for the 3rd quarter of 2023. Affordability, measured by the percentage of wages needed to buy a home, shows considerable variation across counties in Illinois and Missouri. This metric is influenced by factors such as median sales prices and average wages.

For instance, in the County of St. Louis City (yes, it’s odd, but it’s a county), it only takes 17.3% of the annualized wages of an average earner to buy a median-priced home. In contrast, in St. Charles County, it takes 38.3% of annualized wages to afford a home. As the table below illustrates, in 4 of the 7 counties covered in the report, an average wage earner could afford to buy a home. Interestingly, home price appreciation is outpacing annualized wages in those counties, indicating that this affordability may soon change.


 

Percentage Of Income Needed To Buy A Home In St Louis

Percentage Of Income Needed To Buy A Home In St Louis

St Louis Housing Affordability Index By County St Louis Housing Affordability Index By County

NAR President Traci Casper Addresses Housing Market Challenges and Commission Lawsuits in CNBC Interview

Traci Casper, NAR President

In a recent interview with CNBC, Traci Casper, the President of the National Association of Realtors (NAR), shared her views on the current state of the housing market and the implications of recent commission lawsuits. Her remarks provide an insight into the challenges and changes shaping the real estate industry, particularly relevant for the St. Louis market.

Casper highlighted the impact of fluctuating mortgage rates on the housing market, mentioning, “We do have still such a pent-up buyer pool that’s just been waiting on the sidelines… we are starting to feel them come back in.” This observation reflects the interconnectedness of mortgage rates and buyer activity, a significant factor in real estate market dynamics.

Regarding the commission lawsuits, Casper spoke about the potential effects on buyers and sellers. She explained, “Our buyers are already struggling to come up with a down payment… We don’t want to see is the marginalization of those buyers.” This statement is in line with the NAR’s consistent message suggesting that lower-income buyers might be negatively impacted if sellers stop paying buyer agent commissions. I counter Casper’s position, highlighting the disagreement within the industry. Many argue that buyers are indirectly paying the commission since it is generally factored into the home’s selling price. If the payment structure shifts to where buyers directly pay the commission, this could lead to a decrease in the seller’s price, as they would no longer bear this cost. This change might not increase the overall cost to the buyer, but it could affect sellers’ pricing strategies. Additionally, I believe that lenders will adapt to these changes. Institutions like Fannie Mae, Freddie Mac, FHA, and VA are likely to revise their policies to allow commissions paid by buyers to be included in closing costs, counted as part of the down payment, or financed.


Analyzing Jerome Powell’s Latest Press Conference: Implications for Mortgage Rates and the St. Louis Real Estate Market

Federal Reserve Chair Jerome Powell’s press conference yesterday, along with the Federal Open Market Committee (FOMC) statement, provide crucial insights into the Fed’s economic outlook and monetary policy. These insights are pivotal for understanding the trajectory of mortgage rates and the St. Louis real estate market.

Powell’s Press Conference Highlights

  • Economic Activity and Rate Adjustments: Powell noted, “We have raised our policy interest rate by 5-1/4 percentage points… Our actions have moved our policy rate well into restrictive territory.”
  • Housing Sector Observations: He remarked, “After picking up somewhat over the summer, activity in the housing sector has flattened out… largely reflecting higher mortgage rates.”

Key Takeaways from the FOMC Statement

  • Economic and Inflation Outlook: The FOMC stated, “Recent indicators suggest that growth of economic activity has slowed… Inflation has eased over the past year but remains elevated.”
  • Banking System Resilience: The statement highlighted, “The U.S. banking system is sound and resilient. Tighter financial and credit conditions… are likely to weigh on economic activity.”

Anticipated Interest Rate Movements

  • Future Rate Decisions: The FOMC announced, “The Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”
  • Monetary Policy Considerations: “In determining the extent of any additional policy firming… the Committee will take into account the cumulative tightening of monetary policy,” indicating a measured approach to future rate changes.

Implications for Mortgage Rates and St. Louis Real Estate

  • Mortgage Rate Trends: Combining Powell’s remarks with the FOMC statement suggests a period of careful assessment in rate adjustments. This could lead to stabilization or moderate fluctuation in mortgage rates.
  • Market Dynamics in St. Louis: Stable or gradually adjusting mortgage rates, alongside ongoing economic and inflation monitoring, could result in a balanced real estate market. Buyers and sellers in St. Louis may experience a period of relative predictability and sustained market activity.

Conclusion
The integrated perspectives from Jerome Powell’s press conference and the FOMC statement offer a detailed view of the Federal Reserve’s stance on economic conditions and monetary policy. For the St. Louis real estate market, these developments suggest a period of cautious optimism, with potential stability in mortgage rates and a balanced market environment. Real estate stakeholders should consider these insights in their market strategies and decision-making processes.


Understanding Missouri’s Place in National Migration Trends

A recent national migration study by Atlas Van Lines sheds light on the movement patterns across the United States in 2023. For Missouri, and by extension, the St. Louis real estate market, these insights are particularly revealing.

While the study highlights various states experiencing significant inbound or outbound moves, Missouri stands out for its balanced migration pattern. With 51% outbound and 49% inbound moves, this balance has been consistent since 2018, indicating a stable demographic flow in Missouri. This steadiness is an essential factor for real estate professionals in St. Louis, as it suggests a continuous opportunity to cater to both new arrivals and existing residents.

The migration map shown below, illustrating these trends, serves as a visual guide to understanding how Missouri compares with its neighboring states and the nation. Unlike states with heavy inbound or outbound flows, Missouri’s balanced migration pattern presents a unique market scenario. Here, the focus for real estate professionals should be on sustaining and enhancing the region’s appeal to both potential newcomers and current residents.

Missouri’s stable migration pattern implies that while we may not experience dramatic shifts in population, there is a consistent demand for housing and real estate services. This demand is driven by a variety of factors, including economic stability, job opportunities, and quality of life – all critical aspects that influence people’s decisions to move.

The balanced migration in Missouri underscores the importance of focusing on holistic development and marketing strategies that address the needs of a diverse population. For the St. Louis real estate market, it’s about striking a balance between welcoming new residents and serving the needs of those who have long called Missouri home.


2023 Migration Patterns By State – Based on Interstate Household Goods Moves

(from November 16, 2022 through November 16, 2023 – click on map for full report)

2023 Migration Patterns By State - Based on Interstate Household Goods Moves

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).