Mark's Market Update - Interest Rates Hit a 2 Year Low!

Posted by Mark Gellman on Thursday, June 13th, 2019 at 1:54pm.

 

Welcome to another edition of Mark's Market Update. Great news for buyers - interest rates hit a 2 year low! Now, what is happening in the market? We talk about St. Louis County, St. Louis City, St. Charles, and Jefferson County, as markets we track. We look at SALES UNITS, not sales dollars because when prices go up and the sales units go up or stay the same then overall volume increases. We are focused on what happened re: the NUMBER of PROPERTIES SOLD May 2019 vs May 2018. When we look at St. Louis County, sales units were down 10%, St. Louis City sales units down 3%, St. Charles sales units were down 12%. The interesting thing is that in all of those markets the INVENTORY UNITS were actually higher. St. Louis County inventory units increased 16.8%. In St. Louis City increase 11% and St. Charles County 14%. However, as we have discussed, PRICES did increase. 5% in St. Louis County, St. Charles County 5%, St. Louis City the prices remained constant. on a high level, we saw prices increased, with unit sales significantly decreasing, and the correlating units of new inventory increasing. It would tell me that there’s a lot of unrealistic sellers out there, that in our opinion are overpricing their homes (forward looking) seeing that prices have increased over the last few months, but what's happened is they’re just getting carried away, and the markets reacting to not absorbing all of those homes, as prices have risen too quickly. We’re are very surprised by the Jefferson County market. It’s a really unique market. Prices are up 21%, sales units are up 9%, and inventory units have fallen 2%. That strength of that market is really really strong. One thing that we’re seeing and hearing very often right now is that Northern Jefferson County versus St. Louis County, the property taxes are so much lower and better values in Northern Jefferson County. Also, there’s a lot of new construction happening that is impacting these numbers. The combination is making Jefferson County a very desirable place. So overall it’s a really weird market right now. If you have any questions about buying, selling, investing, don’t hesitate to call, email or text. Remember this is a reassessment tax year, so you can appeal your real estate taxes, and we can provide you 2017 and 2018 comps, that are used to appeal your taxes. Send us a PM Lastly and very exciting, WE ARE HIRING!!! As we talked about, all of these numbers are all over the board, but our business is STRONG - up over 20% year over year, and we’re looking for new great additions to our team! Send us a Confidential PM Join Our Team: https://www.thegellmanteam.com/join-our-team2.php So if you have any questions about our hiring practices let us know, we’re ready to go. Thank you so much. LETS GO BLUES!!!!!

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