What Impact Has the 1.5% Decrease in Interest Rates Had?

 What impact has the 1.5% decrease in interest rates had on the real estate market?👉 The decrease was great for the psyche of the market, but we did not see the impact in December as we expected.

👉 Many buyers sat on the sidelines 
📍 St. Louis County

  • Dec 2023 vs Dec 2022
    • Active inventory Increased
    • Unit Sales down
    • New Listings down
    • Prices remained consistent  
  • Less buyers, resulting in sales down, less new sellers on the market, and homes were sitting a little longer, resulting in increase overall inventory

📍 St. Louis City 

  • Dec 2023 vs Dec 2022
    • Active inventory Increased
    • Unit Sales down
    • List to sale ratio down 1.3% to 98.7% (combo of sellers overpricing homes and negotiations occurring on homes)
  • Less buyers, resulting in sales down, and homes were sitting a longer and prices coming down

📍 St. Charles County

  • Dec 2023 vs Dec 2022
    • Unit Sales down
    • Active inventory levels consistent
    • Months of inventory increased (based on higher proportionate of inventory to sales)
    • New Listings down
    • Prices increased (interesting phenomenon)  
  • Many St. Charles sellers are overpriced

📍 Jefferson County

  • Dec 2023 vs Dec 2022
    • This is the most underperforming market of the 4 we cover
    • Unit Sales down
    • New Listings down
    • Active inventory down (as a result of homes coming off the market and many sellers electing not to put their homes on the market)  
  • Homes are sitting longer than the other markets and demand is decreasing

👉 What does this all mean? Even with that drop of 1.5% in interest rates, we have not seen buyers come out in full force.👉 There are still motivated sellers that want to sell, but many homes are not selling.  

🏠 If you are a buyer, there are some great opportunities right now. 👉 You don't have to write every offer over asking with no contingencies. It is not that type of market. 

🏡 Great homes are still selling in today's market that are:

  • Prepared for sale
  • Updated
  • Priced right
  • Marketed to the fullest extent

I recommend that sellers keep their homes on the market. 📉 You may have to adjust your price.  Don’t wait for the competitive Spring market, if your home is on the market, get it sold! 

❗ If you are a new prospective seller with a great home, get your home on the market. It will absolutely sell and sell at a premium. 

Find out the value of your home  

www.TGTvalues.com

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