St Louis Home Prices - St Louis Real Estate News

St. Louis Real Estate Trends: Luxury vs. Non-Luxury Home Sales

By Dennis Norman, on October 6th, 2023

The St. Louis real estate market is experiencing a fascinating divergence in trends between luxury and non-luxury homes. According to the latest data from MORE, REALTORS®, the market for luxury homes—those priced at $750,000 and above—is on the rise, reaching its highest level in eight months. In contrast, the market for non-luxury homes, priced below $750,000, has been on a steady decline for about two years. This article delves into these trends, referencing two illuminating charts from MORE, REALTORS®.

Luxury Home Sales on the Upswing

The first chart from MORE, REALTORS® illustrates the upward trajectory of luxury home sales in Continue Reading →

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

By Dennis Norman, on October 2nd, 2023

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 Continue Reading →

St Louis Home Affordability Declines Double Digits From a Year Ago

By Dennis Norman, on September 29th, 2023

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 Continue Reading →

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

By Dennis Norman, on September 22nd, 2023

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.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES

St Louis Home Flipping Report Q2 2023

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

Continue Reading →

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

By Dennis Norman, on July 14th, 2023

Below is the St Louis Real Estate Market Report for June 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 the relentless tug-of-war that characterizes today’s real estate market, it’s imperative not to base your choices on misguided data!

The present property market leaves little room for errors, thanks to a deficit of listings and aggressive buyer interest. A combination of these factors has sparked not Continue Reading →

St Louis 12-Month Home Sales Trend Drops to Lowest Level in over 8 Years

By Dennis Norman, on July 5th, 2023

For the 12-month period ended June 20, 2023, there were 23,074 homes sold in the St Louis 5-county core market which, as the STL Market Report below (available exclusively from MORE, REALTORS®) shows, is nearly a 20% decline in home sales from the the prior 12-month period when there were nearly 29,000 homes sold. The median price of homes sold during the most recent 12-month period was $270,000, an increase of 5.47% from the prior 12-month period.

St Louis home sales trend continues to fall….

Below the market report is a STL Market Chart showing (also available exclusively from Continue Reading →

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

By Dennis Norman, on June 15th, 2023

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 Continue Reading →

Are Homebuyers Today Grossly Overpaying for Homes and Making Decisions They’ll Regret?

By Dennis Norman, on June 2nd, 2023

I’ve been in the real estate business since I was 17, which means it has been 45 years of experiencing various market conditions, including recessions, inflation, 18% mortgage rates, the burst of the housing bubble, and a myriad of other good and bad things. However, I can confidently say that I have never witnessed a real estate market quite like the one we have been experiencing in the past couple of years.

So, what makes the current real estate market so unique? First and foremost, I’ve pondered this question extensively, and I honestly can’t recall a time in this industry Continue Reading →

St Louis Home Prices Have Increased by 112 Percent Since 2000; Rental Rates Rise by 68 Percent

By Dennis Norman, on May 24th, 2023

As the infographic below illustrates (which is available exclusively from MORE, REALTORS®) the median price of a home in St Louis (the 5-county core market) has increased 112% since 2000, from $124,900 in 2000 to $265,000 in 2022. During the same time period, the median lease rate, or rental rate, for a St Louis home has increased by just 68%, moving from $955 in 2000 to $1,600 in 2022.

Leasing a home is obviously a better deal, right?

If we set aside the benefits (and responsibilities) of homeownership and the long-term investment aspects, simply looking at the monthly cost might Continue Reading →

When will the St Louis real estate market crash?

By Dennis Norman, on April 27th, 2023

What strange and confusing times we live in! Some seemingly credible predictions made by qualified experts suggest that our banking system could collapse, our currency may become worthless, and our country may face a significant downturn. Meanwhile, others claim that there is no cause for alarm. Here in St. Louis, the real estate market continues to thrive as if everything is great in our economy, despite the fact that interest rates have doubled in the past year. I have been in this business for 43 years, and although I have seen many ups and downs in the market, I have Continue Reading →

Report Says U.S. Home Prices Dropped 3% in March, the Biggest Annual Decline in Over a Decade; However, This Was Not True in St. Louis

By Dennis Norman, on April 19th, 2023

A report released today by Redfin reveals that the median U.S. home sale price in March was $400,528 marking a 3.3% decline from March 2022 when the median home price was $414,196. However, the situation in St. Louis is quite different. According to the STL Market Chart (available exclusively from MORE, REALTORS®) below the median price of homes sold in St Louis in March was $260,000, which represents an increase of 4% from March 2022 when the median home price was $250,000.

The chart also depicts the 12-month home sales trend for St. Louis, indicated by the dark green line, Continue Reading →

Why an online auction may be the best way to buy or sell a home in St Louis

By Dennis Norman, on April 17th, 2023

Recently I wrote a lengthy article about various current issues that are likely to bring significant changes to the real estate industry. These changes will also affect the process of buying or selling a home for consumers. Although I may be in the minority within the industry, I strongly believe that most, if not all, of the changes will benefit both consumers and real estate professionals.

One of the first changes that may happen is the elimination of the requirement for sellers to pay the commission to the buyer’s agent in order to list their property in the REALTOR® MLS Continue Reading →

Do you need a buyer’s agent when buying a home in St Louis?

By Dennis Norman, on April 6th, 2023

Earlier this week I wrote an article addressing some of the current issues that will likely significantly impact the residential real estate business. IIn the article, I suggested that, as a result of the various challenges to present-day practices, sellers may no longer be required to pay commissions to the buyer’s agent in the near future. Does this mean the role of the buyer’s agent in a transaction is going away and that buyer’s agents are not needed? The short answer is no, buyer’s agents are not going away.

So, buyer agents won’t be impacted by these changes?

Wait, I Continue Reading →

Do the Fed Funds rate and M2 money supply really matter to the St Louis real estate market?

By Dennis Norman, on March 25th, 2023

For the past several months there have been many reports anticipating the moves of the Federal Reserve regarding interest rates then followed by tons of articles, blog posts and videos analyzing then predicting the impact of the Fed’s decision on the economy. The other popular topic in this area is the “Money Supply”, usually M2 money supply and whether it’s increasing or decreasing as well as the impact on the economy.

Should St Louis homeowners and potential home buyers really care about the Fed Funds rate or M2 money supply?

First, let’s talk about the Fed Funds rate and what Continue Reading →

St Louis Home Prices Increased At Twice The Rate Of Rental Rates From 2018-2022

By Dennis Norman, on March 19th, 2023

Should I rent or buy a home in St Louis? This is a question St Louis REALTORS® are often asked, especially in the past few years while homes appeared to be increasing weekly, there were often more than a dozen offers on a listing and generally the market seemed out of control. Granted, some of that pandemonium has eased somewhat lately given the increase in interest rates and questions about the economy but the question still remains. While there are many non-financial reasons people choose to buy their own home or condo versus rent, we’ll just look at the cost Continue Reading →

St Louis Home Sales Trend Drops To Lowest Level In Over Seven Years

By Dennis Norman, on February 5th, 2023

For the 12-month period ended January 31, 2023, there were 24,993 homes sold in the St Louis 5-county core market which, as the STL Market Report below (available exclusively from MORE, REALTORS®) shows, is nearly a 17% decline in home sales from the the prior 12-month period when there were over 30,000 homes sold. The median price of homes sold during the most recent 12-month period was $266,500, an increase of 6.6% from the prior 12-month period.

St Louis home sales trend falling fast….

Below the market report is a STL Market Chart showing (also available exclusively from MORE, Continue Reading →

St Louis Home Prices and Rental Increasing Faster Than Wages

By Dennis Norman, on January 19th, 2023

A report just released by ATTOM data shows that St Louis home prices are rising at a rate significantly higher than the rate wages in St Louis are rising and St Louis rental rates are increasing at rates higher than home prices. As the chart below shows, during the past year, wages in the St Louis metro area increased 3.8% however, home prices in St Louis increased 7.9% and rental rates increased 11.2%.

Search St Louis Homes For Sale Search St Louis Upcoming OPEN HOUSES St Louis MSA – Housing Affordability

Data source: ATTOM Data – Continue Reading →

Franklin County Home Prices Increased at nearly double the rate for St Louis County From 2021 to 2022

By Dennis Norman, on January 13th, 2023

The median price of homes sold in Franklin County increased from 2021 to 2022 at nearly double the rate the price of homes sold in St Louis County did during the same period. As the chart below shows, the median price of homes sold in Franklin County during 2021 was $206,000 and then increased 6.7% to $219,800 in 2022. During the same period, the median price of homes sold in St Louis County increased 3.4% from 246,500 to $255,000.

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Franklin County vs St Louis County Home Prices – 2021-2022

(click on chart for live, interactive Continue Reading →

St Louis Home Prices Fall Over 12% And Sales Fall 40% In 6-Month Period

By Dennis Norman, on January 6th, 2023

Kind of an attention-getting headline, huh? At least it’s not as bad as a lot of the gloom and doom headlines I’m reading today about the real estate market. Many folks out there are predicting a total meltdown of the housing market, and our economy as a whole for that matter. Don’t get me wrong, I’m not drinking the “there’s nothing to see here” Kool-Aid, I do believe we are in for some rough times ahead, I am just not convinced it’s going to be as bad here in St Louis as in many parts of the country.

So back Continue Reading →

St Louis Real Estate Market Update – Video

By Dennis Norman, on November 23rd, 2022

Is the St Louis real estate market going to crash? The national news is filled lately with reports of slowing housing markets throughout the country, increasing inventories, falling sales and prices. Some prognosticators are predicting some metro areas will see home prices fall by as much as 40 or 50 percent. Is the St Louis real estate market on a similar trajectory?? While I can’t predict the future, I can share data to help you see where the St Louis real estate market is currently as well as where the data shows it’s headed.

[xyz-ips snippet=”Market-Update-Video–Media-Center”]

[xyz-ips snippet=”Seller-Resources—Listing-Targeted”]

Continue Reading →

Franklin County Closed Home Sales In October Over 43 Percent Lower Than Last Year

By Dennis Norman, on October 28th, 2022

As the tables below show, so far during October there have been 52 home sales closed in Franklin County, down 43% from the same period last year when there were 91 sales closed. The median sold price this month for those closed sales in Franklin County has been $210,000 an increase of over 12 percent from the same period last year when the median prices homes in Franklin County sold for was $187,000.

The time it took listings to sell actually improved slightly with the median time being 43 days last October and 4o days this month. Last year the Continue Reading →

St Louis County Closed Home Sales In October Over 25 Percent Lower Than Last Year

By Dennis Norman, on October 28th, 2022

As the tables below show, so far during October there have been 704 home sales closed in St Louis County, down 26% from the same period last year when there were 955 sales closed. The median sold price this month for those closed sales in St Louis County has been $255,000 an increase of over 10 percent from the same period last year when the median prices homes in St Louis County sold for was $231,000. The time it took listings to sell has not changed with both periods having a median of 12 days and homes sold for a Continue Reading →

St Charles County Closed Home Sales In October Nearly 30 Percent Lower Than Last Year

By Dennis Norman, on October 27th, 2022

As the tables below show, so far during October there have been 278 home sales closed in St Charles County, down 28% from the same period last year when there were 388 sales closed. The median sold price this month for those closed sales in St Charles County has been $337,000 an increase of over 12 percent from the same period last year when the median prices homes in St Charles County sold for was 300. Another bit of data which is illustrates the overbidding we’ve seen in the past that has quickly come to an end for the most Continue Reading →

Survey Shows Majority Of Consumers Think Now Is A Good Time To Sell A Home But Not Buy One

By Dennis Norman, on October 27th, 2022

Monthly, Fannie Mae surveys consumers to gauge their sentiment toward whether it’s a good time to buy or sell a home and publishes the result in their Home Purchase Sentiment Index® (HPSI). As the chart below illustrates, in the most recent survey, which was just released, the HPSI index was at 60.8, the lowest level in nearly 11 years. No doubt the higher interest rates and softening economy are taking their toll on homebuyer’s optimism about the prospects of buying a home in the current market. This marks the seventh-consecutive monthly decline in the index and the first time since Continue Reading →

Time On Market and Percentage of St Louis Listings With Reduced Prices Continues To Increase

By Dennis Norman, on October 21st, 2022

As the infographic below illustrates, the time active listings in St Louis have been on the market is much greater than the time it took homes that closed last month to sell. In addition, a much greater percentage of the current active listings have reduced their asking prices versus the sales that closed last month.

The most dramatic increase in days on the market was in St Charles County. Active listings in St Charles County have been on the market a median time of 38 days, almost 5 times as long as the sales that closed in September where the Continue Reading →

Fannie Mae Predicts Lower Home Sales and Home Prices Next Year

By Dennis Norman, on October 13th, 2022

Yesterday, Fannie Mae released their October housing forecast in which they forecast, among other things, where home sales and prices are headed. The report incudes a forecast for next year, which included:

Home prices in 2023 to decline 1.5% from 2022 Home sales to finish 2022 down nearly 18% from last year and drop another 22% in 2023 New home construction to end 2022 down 3.6% from last year and drop another 25% in 2023. Mortgage Interest Rates will continue to rise the rest of these year, ending the year at 6.7% and then will ease back to 6.4% in Continue Reading →

St Louis Real Estate Market Report For September 2022

By Dennis Norman, on October 11th, 2022

Below is our St Louis Real Estate Market Report for September 2022 for the City and County of St Louis combined. You can access the full infographic, containing data for St Charles, Jefferson and Franklin Counties as well by clicking on the image below. Worth noting and remembering is not all data is created equally nor is all of what you see reported accurate. Given the challenging and rapidly changing economic times we are in which are having an direct impact on the St Louis housing and real estate market, now, almost more than ever, you need to be sure Continue Reading →

Why St Louis Home Prices Are Going To Decline

By Dennis Norman, on October 6th, 2022

A little over two weeks ago I wrote my most recent article addressing St Louis home prices titled “Will St Louis Home Prices Decline?” in which my short answer was “yes”, but kind of tongue in cheek and based upon the seasonality of home prices, but my longer answer was more vague. I mentioned that there certainly is a correction coming but pointed out that there are so many variables that will affect prices that it is hard to say to what extent this correction will be. While this is still true, a lot has happened in the short time Continue Reading →

Mortgage Interest Rates Top 7 Percent for first time in over 20 years

By Dennis Norman, on September 27th, 2022

Today, the interest rate for a 30-year fixed-rate mortgage hit 7.08% marking the first time in over 20-years the rate has gone above 7%. Historically speaking, as the 2nd chart shows, this is not that high of an interest rate and, in fact, lower than the median rate over the past 50 years, however, it’s a very high rate based upon the the recent past.

The affect of interest rates on home prices…

Interest rates just began increasing in the past few months, rising above the 4% level in February, so it will take time to see the impact of Continue Reading →

Will St Louis Home Prices Decline?

By Dennis Norman, on September 20th, 2022

The short answer is yes. They decline every year as we head into winter due to the seasonal nature of the business. If you look at the first chart below which depicts the median price of homes sold in the St Louis 5-County core market since 1998, you will notice a very consistent pattern of prices rising in the spring and summer, then declining in the fall and winter. For the most part, the other pattern you will see is that the peak each spring is higher than the spring before and the bottom each winter is higher than the Continue Reading →