We’ve been in a seller’s market thus far in 2018, but there are still pockets where buyers have the advantage. Moving forward, we’re hoping for an increase in inventory.
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What’s been happening in the St. Louis real estate market in 2018 now that spring is here?
Market activity thus far has been very consistent with what we saw in 2017, especially during last year’s third and fourth quarters. Inventory has been light, and it’s been a seller’s market. In fact, we evaluated all inventory levels over the past 10 years and found that January 2018 had the lowest inventory levels of that 10-year period.
Now that spring is upon us, we’re hoping we’ll see an increase in inventory because things have been challenging for buyers sitting on the sidelines. Interest rates have increased over 1% in the last six months, which has reduced their buying power. On top of that, prices have also increased. In some cases, they’ve gone up anywhere from 10% to 20%.
"Prices are up, inventory is down, and we’re in a clear seller’s market."
It’s a seller’s market, but there are still pockets that favor buyers, where there’s an excess of inventory or not as much demand. A lot of sellers are hesitant to put their home on the market, because then they become a buyer and they may not be able to find what they’re looking for if they sell their home in a timely manner. That being said, if you are a seller, you may want to consider doing a double-move. This way, you can be the best buyer you can be and not have to rush to find a home.
On the investment side, the single-family home market for investors is strong, but most of them are being beat out by owner-occupants. In the multi-family market, investors are paying a significant premium because rents continue to rise.
Along with an increase in inventory, we’re also hoping to see interest rates stabilize or decrease. This week, we saw some heavy-duty declines in the stock market we’d like to see stabilize as well. An increase in inventory won’t hurt the current sellers in our market because there’s such a limited amount to begin with.
If you have any other questions about what’s been happening in our market or you’re thinking of buying or selling a home soon, feel free to give me a call or send me an email. I’d love to help you.