What is Happening in the Market?

❓ What is happening in the market? 

🏘️ Interest rates - approximately 7%. Interest rates are a noncontrollable.

  • We are seeing a very active market right now with buyers ignoring the higher rates. 
  • There is a shortage of sellers. Many sellers are still locked into 2% or 3% interest rates and are not prepared to trade up to a higher interest rate.

❓ What does this mean? ➡️ Simple supply and demand: we are seeing significant demand and not enough supply.

  • Prices are rising as a result.

📍 St. Louis County

  • February 2019, 2,500+ active homes for sale.
  • February 2024, 1,298 active homes for sale. 
  • February 2024, less than 2 months of active inventory.
  • Prices are up 40% from 2019.
  • Interesting time as inventory is increasing compared to the previous month, as overpriced homes are sitting on the market longer.  

📍 St. Charles County

  • Prices are up 50% from 2019.
  • Similar to St. Louis County, overpriced homes are taking longer to sell and inventory is slightly increasing over the previous month.
  • Note, overpriced homes are eventually selling as prices are reduced or buyers adjust their expectations.

📍 St. Louis City

  • Prices and unit sales are increasing, similar to St. Louis & St. Charles Counties.
  • Note, inventory is growing at a much higher rate. 
  • We are seeing more sellers put their homes on the market, with disproportionate slower sales. 

📍 Jefferson County

  • Unique market compared to above.
  • The number of active listings and unit sales are both down year over year.
  • Prices are higher year over year.

❓ What do I see going into the spring market (March, April, & May)?

  • Weakness in inventory and significant demand.
  • Interest rates will remain stable.
  • If you’re a seller and put your home on the market priced right, then you will have multiple offers, over asking.
  • If you’re a buyer, you must have the appetite to compete in this competitive market.

🏘️ If you have any questions about buying, selling, or investing, don't hesitate to reach out.

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