1. How’s the residential real estate market in St. Louis? I would say, “it depends”. Are you a home buyer or home seller? On the home buyer side, things are tricky. We have low interest rates, lots of demand, and the supply can be kind of rotten. The typical home buyer is getting stuck either paying too much for a home or buying a home that needs quite a bit of work. There are always good deals though, and I encourage my buyers to look for those deals and be patient.
On the home listing side, that’s also kind of tricky right now. If you come to market at the right price, house will be gone in a week. If you miss to the high side, the penalty can be months on the market. When all of your friends are telling you that they know someone who sold a house in a week, you start to think that every house sells that quickly. Home sellers want the most they can get for their property, and this is natural, but it causes some pretty decent misses on price to the high side. As that house sits, you get stuck with lowering the price and waiting for a new batch of buyers to come through. Not a great situation.
2. What are you seeing as far as design trends? For the past decade or so, we’ve seen what one of my clients called “greysh” It’s that blue-gray color that everyone seems to have on their walls. This was a step up from that khaki we saw in the 90’s. However, I’ve been noticing a switch to the preferred wall color. It’s sort of an off white. The trim is still white as well. There’s a contrast but it’s not as big as the one from greysh to white. Will this new color trend stick? I don’t have any idea. I just know that I’m seeing it more often in the houses I tour as a buyer’s agent.
3. Where are mortgage interest rates? Last year, there was a spike in rates, and I thought that would be the last time we’d see anything in the 3’s. All of a sudden, that rate rally died and we’ve been sub 4’s for good credit since. It’s actually created some refinance opportunities for those who have purchased homes a year or more ago. I’m quite surprised.
4. Anything to look out for when buying a home in St. Louis? Gosh, there’s many things to look out for! When you are looking to buy a home for sale in St. Louis County, there are some things you should be looking out for.
- What is the age of the systems? How old is the HVAC? How old is the Water Heater? If you are looking at two homes and they are the same price, one has a 30 year old furnace and air conditioner, and the other home has one installed a year ago, take the new system. What I usually see is old R-22 systems on their last legs, home sellers pumping them full of Freon before the house goes to market, and the new home buyer stuck with a 410 conversion in the first year of ownership. “Being a little low on Freon” on a disclosure usually doesn’t get disclosed, and that’s a shame. Because of this, if the system is old, I usually look for a home warranty paid for by seller as part of a home purchase negotiation.
- Where does the water run? Water is really destructive to a home. On a roof, look at the downspouts. Are they in good condition? How about the gutters? The water can get behind the gutters and cause significant damage that is really hard to detect until it’s too late. Just last night, I showed a house where the home next to it was at least 5 feet higher in grade. When it rained, all of the downspouts from that house sent water into the house that was for sale. The basement was a mess. Stay away from these situations. Look at where the water would likely go before you decided to buy your new home.
5. What’s the future looking like? Still see a strong seller’s market? I’m terrible at predicting the future. I know that when I think it’s a good time to buy stocks, that’s probably the best time to short them. We’ve had a strong market for many years now that has benefited the home seller. At some point, that has to balance out. I believe the statisticians stay “regression to the mean”. I don’t know when that will be, or what that will look like. This is what I tell my potential home buyers. “Buy a home that you would be happy in for 5 years or forever.” We need to find buyers that home. We have no idea what the market will do in the future, but if we’ve found a home at the right price that they buyers love, it doesn’t really matter.
About The Author: John Schink
John Schink, with his extensive experience and deep understanding of the St. Louis real estate market, leads Deerwood Realty. His expertise in navigating the complexities of today's market makes him a valuable resource for anyone looking to buy or sell property in the region. For more information or to reach out for real estate advice, contact him at 314-707-4821 or john@deerwoodrealtystl.com.
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