Mark's Market Update: What to Expect in the St. Louis Real Estate Market in the 4th Quarter

Welcome to another edition of Mark's Market Update! It's September, the leaves are starting to turn. What is happening in the market? ?

Are we in a Buyer's Market, Seller's Market, Balanced Market?

  • It's actually been an interesting market.
  • Starting at the beginning of the year, we really saw a very severe Seller’s Market. ?? That seller's market started earlier and it carried throughout the summer.
  • June 2021 was the low water mark of inventory, less than one month of inventory throughout the markets that we follow. ?

July I started discussing market softening, with a little more inventory. 

  • We saw inventory increase a tad and then it began to fall during August (as an increase in sales occurred in July/August) ??  
  • In July we saw unrealistic sellers, many pricing their homes 10 - 15% over what they should have. Their homes just sat and created less buyer demand. They had to take price adjustments and they had to get realistic. Those homes ultimately sold, but in many cases at prices that weren't as good as if they would have priced it right to begin with. 
  • August was a month we saw buyer strength. 
  • Multiple contracts still occurring, but unlike at the beginning of the  year where we were seeing 5, 6, 10 offers, multiple offers went down to in many cases, 2 or 3. This resulted in prices softening a tad. 
  • But what we're seeing right now is some of those buyers that sat out of the spring and summer market getting back into the market. ? 

So what's going to happen in the fourth quarter? It's really an unknown right now. 

  • September 2021 weaker inventory compared to prior years. 
  • Traditionally going into October, November, December, we expect a continued softening of inventory, as many sellers in St. Louis are going to take their homes off the market or keep their homes off the market for the winter. ?
  • We've always said, if you're a seller, get your home on the market. Fourth quarter, there's less competition, significant demand and great opportunities to sell. 
  • We believe that we're still going to see a weakness in inventory, but if sellers get their homes on the market, are realistic, and list at the market price - 4th quarter could have significant activity. 

If you're a buyer: 

  • There are going to be homes available on the market, although less than traditionally. 
  • You will have to be an aggressive buyer like we've discussed in previous market updates.

If you're a seller: get your home on the market, prepare it for sale, and listen to your real estate agent to price it right. ?

  • Listen to guidance from your Real Estate Agent re: preparation for sale and pricing. 
  • Prepare it for sale! 
  • No need to overprice the home! The market will recognized a well-priced home, bid it up to a higher price if competitive vs. overpricing your home where it will sit. A home that sits will then lose momentum, as a price adjustment will be needed. 
  • The time to sell is now - get your home on the market. 

If you have any questions about buying, selling, don't hesitate to reach out. ? If you just want a home valuation, we're here for you. Have a fantastic day and thank you so much.

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