STL Real Estate Musings

Posted by Gary Hoeferkamp on June 8, 2022

What is the state of real estate in STL these days? You hear all kinds of things. Here is what I ran yesterday in these towns, all prices, existing single family and condo:

• Manchester has 8 homes available and 25 under contract
• Ballwin has 30 homes available and 122 under contract
• Kirkwood has 13 homes available and 26 under contract
• St Peters has 32 homes available and 137 under contract
• Arnold has 10 homes available and 60 under contract
• Florissant has 69 homes available and 185 under contract

The ratios run from 2 pending sales for every 1 available, up to 6 pending sales for 1 available. At this time, that indicates no slow down in the STL market, as the average ratios have been running from 2 to 4 pending sales for every 1 available for the past 2 years.

Ballwin MO was just named one of the 10 most popular real estate markets in the country for the 1st quarter! Zillow analyzed page-view traffic, home value growth, and for-sale inventory for more than 1,000 cities to come up with a ranking of the site’s most popular U.S. markets, factoring in indicators of home buyer demand and general housing market activity. Zillow excluded cities with fewer than 100 for-sale listings from January-March 2022.

What does it take to buy a house these days? As you have likely heard, it is not just price, it has as much to do with terms, namely financing and appraisal. The higher you bid over list price with full appraisal protection makes the seller more anxious that it will not go thru, unless you have the cash to make up for a potential low appraisal. Better yet, have a "proof of funds" for the entire purchase price with no appraisal rider, and get whatever financing you desire, that is the Number 1 factor that sets the best offers apart. The majority of buyers in STL are still getting inspections with termination rights, but not asking for repairs.

Other strategies are:

• Waiting til late summer/ fall/ early winter when buyer demand drops. You will still be in competition, and there may be less to choose from, but your odds are better and for less over list price.
• Look at villas and condos, they have less competition. Villas are more competitive, as they are single family homes with monthly fees and usually attached on one or both sides, whereas condos less competitive, as they typically have higher fees, more restrictions, and may have lobbies and more shared walls and ceilings.
• Consider older homes and less updated finishes. You will have less competition, as the best looking homes attract the most offers.

White shaker style kitchens in St Louis have been very popular for a few years now. Time for a change? I am seeing dark gray and dark blue mixed with white making headway, either white top and dark bottom or dark island and white perimeter. Bigger islands are hot. Matte gold fixtures have become accepted, even desired. Backsplashes can get a bit eye-catching with all the white cabinets and counters. Silver stainless appliances are still number one, slate appears number 2.

Hoeferkamp Real Estate had a record month in April with $3 million in closed sales volume! It has been a busy spring, thank you to our clients who continue to trust us with their home sales and purchases, and refer others.undefined