The St. Louis real estate market has been through some ups and downs over the past few years, but it remains a stable and thriving market overall. As we head into summer 2023, many are wondering what the future holds for the St. Louis housing market. In this article, we will take a look at the latest trends and data, as well as make some predictions for what we can expect in the coming year. Whether you're a buyer, seller, or investor, understanding the St. Louis real estate market is crucial for making informed decisions.
St. Louis Housing Market Trends in 2023
The St. Louis housing market has witnessed some notable trends and changes in the past month. Examining the housing market trends in St. Louis, Missouri, for the year 2023, as reported by St. Louis REALTORS® in July, reveals several key insights into the state of the market.
Market Activity
New Listings: New listings in the St. Louis housing market have decreased by 11.7 percent for residential homes and 9.8 percent for townhouse/condo homes. This decline in new listings suggests a potential tightening of housing supply.
Pending Sales: Pending sales have also seen a slight dip, with a 0.2 percent decrease for residential homes and a 1.9 percent decrease for townhouse/condo homes. This indicates a relatively stable demand in the market.
Inventory
Inventory: The number of homes available for sale has decreased significantly, with a 19.6 percent drop for residential homes and a 16.9 percent drop for townhouse/condo homes. A shrinking inventory could lead to increased competition among buyers.
Price Trends
Median Sales Price: The median sales price for residential homes has increased by 3.5 percent to reach $300,000, while townhouse/condo homes have seen a more substantial 7.9 percent increase, bringing the median price to $219,000. These price increases indicate appreciation in property values.
Days on Market
Days on Market: The average number of days that properties spend on the market has increased by 21.1 percent for residential homes and 35.0 percent for townhouse/condo homes. Longer days on market may suggest a more balanced or even buyer-friendly market.
Supply and Demand
Months Supply of Inventory: The supply of inventory has remained relatively flat for residential homes, but there has been a 7.7 percent increase for townhouse/condo properties. This increase in supply for townhouse/condo homes might provide more options for buyers in that segment.
Are Home Prices Dropping in St. Louis, MO?
Based on the data provided, home prices in St. Louis, MO, are not dropping. In fact, they are on the rise. Both residential and townhouse/condo homes have experienced increases in median sales prices, indicating a healthy appreciation in property values.
Is it a Good Time to Buy a House in St. Louis?
The decision of whether it's a good time to buy a house in St. Louis depends on various factors, including your personal financial situation and long-term goals. While home prices have increased, the market has seen a decrease in inventory and an increase in the average days on market for some property types.
If you're considering buying a house in St. Louis, it's essential to work with a local real estate agent who can provide guidance tailored to your specific needs and circumstances. They can help you navigate the current market conditions and make an informed decision about when and what to buy.
Keep in mind that real estate markets can fluctuate, and it's crucial to weigh your options carefully and consider your future plans when making a home-buying decision.
St. Louis Real Estate Market Forecast 2023-2024
For those interested in the St. Louis real estate market, understanding the forecasted trends can be invaluable. By analyzing the available data, we can gain insights into the potential trajectory of home values and market conditions. Let's explore the real estate market forecast for St. Louis, Missouri, as reported by Zillow. This data offers valuable insights into the current and future trends in the housing market.
Current Market Snapshot (Data through July 31, 2023)
- Average Home Value: $171,870
- Year-Over-Year Change: Up by 7.6%
- Time to Pending: Approximately 6 days
These statistics reflect the state of the St. Louis housing market as of July 31, 2023. The average home value has shown a remarkable 7.6% year-over-year increase, indicating strong property value appreciation. Homes in St. Louis are also moving quickly, with an average time to pending of just 6 days.
Key Market Metrics (As of June 30, 2023)
- Median Sale-to-List Ratio: 1.008
- Percent of Sales Over List Price: 54.2%
- Percent of Sales Under List Price: 27.8%
- Median Days to Pending (As of July 31, 2023): 6 days
These metrics provide further insights into the competitiveness of the St. Louis real estate market. A median sale-to-list ratio above 1.0 (1.008) suggests that, on average, homes are selling slightly above their list prices. Additionally, more than half of the sales (54.2%) are occurring over the list price, indicating strong demand from buyers.
While 27.8% of sales are happening under the list price, this can be attributed to various factors, including negotiation strategies. The relatively short median days to pending (6 days) underline the fast-paced nature of the market.
St. Louis MSA Real Estate Market Forecast by Zillow
Now, let's look at the broader real estate market in the St. Louis Metropolitan Statistical Area (MSA) without including tables:
The data suggests positive trends in the St. Louis MSA real estate market, with steady growth projected over the coming months and into 2024. By July 2024, a substantial increase in home values is anticipated, highlighting the overall strength and optimism in the St. Louis MSA real estate market.
These forecasts provide valuable information for both buyers and sellers, offering insights into the potential for property appreciation and market dynamics in the broader St. Louis region.
St. Louis Real Estate Investment Overview
Is St. Louis a Good Place For Real Estate Investment? St. Louis, Missouri is a city with a rich history, culture, and a growing economy. The city boasts a diversified economy with multiple sectors, including healthcare, education, and manufacturing, providing a stable foundation for real estate investments. St. Louis offers a range of investment opportunities, from affordable fixer-uppers to high-end luxury properties, making it an attractive option for both beginner and seasoned real estate investors.
One of the most significant factors driving the St. Louis real estate market is its affordability. The average home value in St. Louis is $166,804, making it one of the most affordable cities in the US. Despite being affordable, the city's real estate market is poised for growth over the next twelve months.
Another factor driving St. Louis's real estate market is the city's growing population. The city's population has been steadily increasing over the years, which has led to an increased demand for housing. This demand has caused rental prices to rise, making it an ideal city for real estate investors looking to capitalize on rental properties.
St. Louis is also home to some of the best neighborhoods in the country. Neighborhoods like Forest Park Southeast, Central West End, and Botanical Heights offer an excellent opportunity for real estate investment due to their high median home values and growth potential. Overall, St. Louis is a promising location for real estate investment, with a growing economy, affordable housing, and an increasing population. Investing in St. Louis real estate can provide investors with long-term financial benefits.
Top reasons to invest in St. Louis real estate:
Let's take a deeper dive into each of the top reasons to invest in the St. Louis real estate market.
- Affordable Home Prices: The average home value in St. Louis is $171,870, which is significantly lower than the national average. This means that investors can purchase properties at a lower price point and potentially see higher returns on their investment.
- Strong Rental Market: St. Louis has a robust rental market with a high demand for rental properties. Rental rates have been steadily increasing over the past few years. Investors can take advantage of this trend by purchasing rental properties and generating passive income.
- Growing Job Market: St. Louis has a diverse economy and is home to several major companies and industries, including healthcare, biotechnology, and finance. This has led to a growing job market with low unemployment rates, making it an attractive location for young professionals and families.
- Urban Revitalization: St. Louis has undergone a significant urban revitalization in recent years, with several neighborhoods experiencing redevelopment and an influx of new businesses and residents. This has led to increased property values in these areas and presents opportunities for investors to purchase properties before they appreciate in value.
- Strong Real Estate Market Forecast: According to Zillow's MSA-level forecast, the St. Louis real estate market is expected to experience modest growth in the coming years, with a projected increase in home values of 0.4% by March 2023, 0.2% by May 2023, and a slight decrease of 0.4% by February 2024. While not a dramatic increase, this forecast suggests a stable and steady market that is unlikely to experience significant declines.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Similarly, don’t let the country-western touristy image dissuade you from investing in Nashville, TN. There are several points in favor of the Nashville real estate market if you are looking for a solid opportunity. One of the best features of the Nashville real estate market is the median property price in the city, which is considered more affordable than most of the other top markets for investing in real estate in the U.S.
Although the Nashville real estate market is expected to move a little more slowly in 2023, which would make things better for buyers, the inventory will remain limited, which means that Nashville will remain among the fastest-moving housing markets in the U.S. Also, as the mortgage rates remain at record lows, it makes buying a property more affordable now than it was in previous years.
Another housing market in Texas to go for diversifying your investments is the Austin housing market. The Austin housing market may be one of the more expensive ones in the state of Texas, but it stands out for its large rental market and high rental rates. It is an excellent place to invest in real estate in the Lone Star State. It may be the second most expensive housing market in the state but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- https://www.zillow.com/saint-louis-mo/home-values/
- https://www.stlrealtors.com/pages/housingreport/
- https://www.redfin.com/city/16661/MO/St-Louis/housing-market
- https://www.zumper.com/rent-research/st-louis-mo
- https://www.neighborhoodscout.com/mo/st-louis/real-estate#description
- https://www.realtor.com/realestateandhomes-search/Saint-Louis_MO/overview
