Here’s what’s really going on in the St. Louis real estate market.
Despite the meteoric rise in interest rates, most of our buyers are continuing to move forward with their purchases. To be clear, many are adjusting their price points as their buying power has decreased; instead of looking to buy a $400,000 house, some are searching for homes around $350,000. Others are simply buying the houses they want and stomaching the increased monthly payment.
Inventory levels are rising slightly. There are around 220 more active homes on the market than there were just a month ago, which is a big change for such a small period. We’ll likely see more inventory become available, but that’s normal for the spring market. Around 67% of all available homes are currently under contract.
On average, homes in our area are selling for 102.1% of their list prices, though that figure is much higher in certain communities and price points. For homes at or under $500,000, we’ve seen properties sell for 104% of their list prices, with certain deals even reaching 115%. Statistics point to a continued upward push on home prices.
“Prices won’t go through a substantial dip, but things should get a little better for buyers.”
Over the last month, however, we’re noticing less competition for homes. Appropriately priced properties in good condition that would have seen 10 to 15 offers back in March are now only getting between two and five. These offers are still very good, and many are on par with those crazy offers we saw a couple of months ago. But that won’t last forever; people are beginning to notice the decrease in competition and are adjusting their offers. Prices won’t go through a substantial dip, but things should get a little better for buyers.
So what does this all mean? For buyers, it means that your prospects are improving, and the likelihood of getting your offer accepted will increase. For sellers, there’s no real cause for concern. Projections suggest a continued appreciation for this year and the future. Nationwide in 2020, we saw homes appreciate by 10%, and in 2021, they appreciated by 18%. Experts forecast at least 9% appreciation in 2022.
If you have any questions about these changes in our market or how they affect your prospects, don’t hesitate to give us a call or send us an email. We’d love to hear from you.
