St. Louis’ real estate market may have seen some ups and downs in recent years, but overall, it is a thriving and stable market. Many are curious about the housing market in St. Louis as we approach winter 2023. This article will look at some of the most recent trends and data and provide predictions about what to expect in the next year.
St. Louis Real Estate Market Trends for 2023
St. Louis’ housing market is experiencing significant shifts. This provides valuable insight for both buyers as well as sellers. We’ll dive into the latest statistics from St. Louis real estate MLS sources to better understand current trends.
New listings: Residential and Townhouse/Condo Homes
Market growth has been 5.7 percent for Residential Homes and 8.2 percent for Townhouse/Condo Homes. This increase in new listings indicates a dynamic housing market that caters to different housing preferences.
Pending sales: Variable trends in residential and townhouse/Condo Homes
Townhouses/condos saw a decline of 7.5 percent despite a 9.2 increase in pending sales. The two segments have different buyer dynamics and interests.
Inventory Fluctuations – A Tale of Two House Types
Inventory of residential homes increased by 3.3 percent, giving potential buyers more choices. Townhouses/condos, on the other hand, saw a 7.9 % decrease in their inventory. This could create a more competitive housing market.
Median sales price: Appreciation of Residential and Townhouse/Condo markets
The median price of homes increased by a modest 2.1 percent to $268,000. Townhouses/condos, on the other hand, experienced a more significant 10.4 percent increase, reaching a price of $215,000. These figures show a strong market performance and a potential increase in property values.
Days on Market: Faster Transactions for Both Segments
The days on the market for both Residential Homes and Townhouse/Condo Homes decreased. Residential Homes experienced a 3.8 percent reduction, while Townhouse/Condo Homes experienced an even more significant 11.1 percent decrease. This indicates a higher pace of transactions. High demand and efficient sales processes contributed to this.
Understanding the Market Dynamics
The month’s supply of inventory is a crucial indicator of market balance. It increased by 23.5 percent for residential homes and 14.3 percent for townhouses/condos. This shift reflects changes in the dynamics of supply and demand, which impacts the overall balance of the housing market.
When is a good time to buy a house in St. Louis, Missouri?
Your financial situation and long-term goals will determine if it is a good or bad time to purchase a home in St. Louis. The market has seen an increase in home prices but a decrease in stock and a rise in average days on the market for certain property types.
When considering purchasing a home in St. Louis, working with a local agent who can offer guidance tailored to your needs and circumstances is essential. You can use them to navigate the market and decide what and when to buy.
When buying a house, it is important to consider the future and weigh all your options.
Louis Real Estate Market Forecast 2023-2024
Zillow offers valuable insights into the St. Louis real estate market for buyers closely following this landscape. The average home value for Saint Louis is $168.570 as of October 31, 2023. This represents a notable increase of 6.6 % in the last year. The homes in this area are quickly moved to pending status. This usually happens within nine days. This highlights the high demand for the site.
Key Metrics by October 31, 2023:
- For Sale Inventory: 930 homes
- New Listings: 375 homes
- Median sale-to-list ratio (as of September 30, 2023):
- Median Sales Price (as of September 30, 2023): $26,667
- Median list price (as of October 31, 2023): 191,533
- Percentage of sales over list price (as of September 30, 2023): 48.5%
- Percentage of sales below list price (as of September 30, 2023): 36.3%
These metrics paint a dynamic picture, with a balanced market between supply and demand. This can be seen in the median sales-to-list ratio and the percentage of sales above the list price.
St. Louis Metro Real Estate
St. Louis’ Metropolitan Statistical Area, which includes several counties in Missouri (MO), offers a forecast for real estate investors and enthusiasts. The data indicates that the MSA will experience a slight increase of 0.1 on November 30, 2023. A modest drop of -0.4% can be expected by January 31, 2024. An even more dramatic reduction of -1.6% is projected for October 31, 2024. This forecast indicates potential changes in the market dynamics, which stakeholders should closely monitor.
St. Louis Metropolitan Statistical Area is a collection of counties located in Missouri. It serves as a significant economic and cultural center. The MSA is made up of St. Louis City and the surrounding counties. This area contributes to the overall growth and development of the region. St. Louis MSA has a significant housing market with diverse neighborhoods and properties, making it a real estate activity center.
St. Louis home prices: Are they on the decline?
According to the latest Zillow data, St. Louis’ average home value has increased by 6.6% over the last year. This indicates a trend towards appreciation rather than decline. The average sale price of homes in the area is $168,570. With the market moving quickly, this suggests that the current prices are supported by demand.
St. Louis’s housing market currently exhibits both seller and buyer market characteristics. There is a high level of demand and a sense of urgency in the market, as evidenced by a nine-day median for pending homes. This aligns well with a seller’s market. The percentage of sales above and below the list price (48.5% vs 36.3 %) suggests a degree of negotiation, and the market can be manipulated.
Will St. Louis’ housing market crash?
Zillow’s St. Louis MSA housing market forecast offers a nuanced view. The forecast indicates a slight increase of 0.1% on November 30, 2023. However, it also predicts that -4.4% will be experienced by January 31, 2024. By October 31, 2024, the most significant projected drop is 1.6%. These figures indicate a possible market cooling but do not predict a crash. It is essential to closely monitor the market dynamics to understand future trends.
Louis Real Estate Investment Overview
Is St. Louis a Good Place For Real Estate Investment? St. Louis, Missouri, is a vibrant city with a long history and culture. It also has a growing economy. St. Louis has a diverse economy, with many sectors, including healthcare, manufacturing, education, and more. This provides a solid foundation for real estate investments. St. Louis has many real estate investment options, from affordable fixer-uppers to high-end luxury properties. This makes it an excellent choice for new and experienced investors.
The affordability of St. Louis’ real estate is one of its most important factors. St. Louis has one of the lowest home values in the US, at $166.804. Despite being affordable, the city’s housing market will grow over the next year.
The city’s increasing population is another factor that drives St. Louis’s property market. Over the years, St. Louis’ population has steadily increased. This has resulted in an increase in housing demand. Rent prices have risen due to this demand, making it an excellent city for investors looking to profit from rental properties.
St. Louis also has some of the most desirable neighborhoods in the United States. Forest Park Southeast and Central West End are excellent neighborhoods for real estate investments due to their high home values and potential growth. Thanks to its growing economy, affordable housing, and increasing population, St. Louis offers an ideal location for real estate investments. St. Louis property can provide investors with long-term financial rewards.
Top Reasons to Invest in St. Louis Real Estate:
Look at the top five reasons to invest in St. Louis’ real estate market.
- Affordable House Prices The average house value in St. Louis, Missouri, is $171.870. This is significantly less than the national average. Investors can buy properties at lower prices and see higher returns.
- St. Louis Rental Market St. Louis is a rental market with strong demand. Rent rates have steadily increased over the last few years. Investors who purchase rental properties can take advantage of this trend to generate passive income.
- Growing Employment St. Louis is a city with a diverse economy, which includes several industries and companies, such as healthcare, biotechnology, and finance. The low unemployment rate has resulted in a growing employment market attractive to young professionals and families.
- Urban Revitalization St. Louis underwent a significant urban rejuvenation in the last few years. Several neighborhoods have experienced redevelopment, and there has been an influx of businesses and residents. The increased value of properties in these areas has created an opportunity for investors to buy property before it appreciates 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 over the next few years. Home values are projected to increase by 0.4% in March 2023 and 0.2% in May 2023. A slight decline of 0.4% in February 2024. This forecast indicates a steady and stable market, unlikely to decline significantly.
For most investors, buying or selling real estate is one of their most important decisions. Choosing a real estate professional/counselor continues to be a vital part of this process. They know the critical factors that will affect your market area, including market conditions and forecast changes, consumer attitude, best locations, timing, and interest rates.