by Mark Gellman
on Tuesday, February 19th, 2019 at 12:18pm.
Welcome to another edition of Mark’s Market update. Last week, we talked about a summary of 2018 for both St. Louis County and St. Charles County. This week we’re going to get a little more specific.
Let’s start by taking a look at what happened in 2018 in the Chesterfield submarket? Right now, I'm standing behind the development of Fienup Farms. It’s going to be one of the biggest new residential development in the Chesterfield - Wildhorse corridor in the last 30 years. It’s a 223-acre farm that was purchased, and there's going to be 223 new homes on it.
There's a 26-acre lake that's going to have fishing and paddle boards. There's going to be a playground, fire pits, and more. Those homes are going to range in price from about $500,000 up to $2 million dollars.
I’m not only here to showcase this property, but I’m also here to tell you that this has had a major impact on the Chesterfield resale market. Along with this development, there are a couple other developments on this Wildhorse corridor that have impacted the Chesterfield resale market in 2018.
In St. Louis and St. Charles County last week, inventory levels and sales were both down, but prices were up. It’s a little bit different in Chesterfield, where actually inventory levels were down while sales were up a tad. However, based on supply and demand, you would think prices were up, but what we saw is that sale prices actually dropped year over year. There were more motivated sellers this year, so we saw a lot of discounted home sales. These were homes that would've sold at a big premium two or three years ago.
We’ve talked about the over $1 million market in Chesterfield before, which has over 18 months of inventory. So again I wanted to not only showcase this development, but talk about what’s happening in the resale market. If you’re a buyer in the Chesterfield market, what is going to work best for you?
A resale home is going to be your most affordable buying opportunity, there's no doubt about it. But you're going to maybe have to put dollars into that home to make it yours. The reason that new construction is selling so well is because you get exactly what you want because you can customize the home. Keep in mind, however, that you’ll have to pay a premium for it.
So if you have any questions about buying, selling, investing, the value of your Chesterfield home or the value of any home anywhere in St. Louis or St. Charles County, don't hesitate to call, email or text. Also, if you’re looking to buy new construction, we certainly can represent you as a buyer in that area. Thank you very much and have a fantastic day!