St Louis Real Estate Exchange

Every month, the National Association of Realtors (NAR) releases their Seller Traffic Index as a part of their Realtors Confidence Index. In the latest release, NAR reported that homeowners have been reluctant to sell their houses. This is reflected when broken down by state. Only 11 states have a stable level of seller traffic compared to the remainder of the country, which came in with a weak rating.

As we can see in the following table, the number of people who moved last year is half of what the rate was in the 1980s.

This does not come as a surprise, as tenure length (the number of years someone owns a home before moving again) among existing homeowners has increased. It has risen from an average of 6 years from 1985 to 2008, up to 9.5 years over the last few years. This is shown in the graph below:

As we can see, there is a pent-up seller demand!

What led to this change in behavior? Falling prices during the housing crisis led to many homeowners having negative equity in their home, meaning they owed more on their mortgage than the home was worth. Others were able to secure a low interest rate on their mortgage and have not been quick to obtain a new mortgage with a higher rate.

Will this trend continue?

Recently NAR reported that “69% of people believe now is a good time to sell a home.”

With a strong economy, low interest rates, and wages continuing to rise, some homeowners will be ready to put their house on the market and move up to the home of their dreams!

Bottom Line

There is a great opportunity for sellers to take advantage of the current real estate market before new inventory comes to market. If you are considering selling your house or would like to know your options, contact a local real estate professional today who can help you to understand the possibilities available to you!

Happy April! Spring has sprung. Here are a few upcoming events in St. Louis that are sure to put a spring in your step this month.

Opening Day Cardinals action at Busch Stadium

A fan-packed Busch Stadium attended the 2019 Cardinals Opening Day to watch game action of the Cardinals playing the San Diego Padres.

Waitress at the Fabulous Fox | Through April 7

Brought to life by a groundbreaking all-female creative team! WAITRESS tells the story of Jenna – a waitress and expert pie maker, Jenna dreams of a way out of her small town and loveless marriage. A baking contest in a nearby county and the town’s new doctor may offer her a chance at a fresh start, while her fellow waitresses offer their own recipes for happiness. But Jenna must summon the strength and courage to rebuild her own life

Meet Me Outdoors in St. Louis | Weekends in April

Featuring a fun line-up of active, outdoor experiences, exhibitors, experts and more at Missouri Botanical Garden (April 6-7), Shaw Nature Reserve (April 27-28) and the Butterfly House (April 13-14), the Meet Me Outdoors in St. Louis weekend festival invites people of all ages to embrace their role as citizen stewards—celebrating, connecting with and conserving our region’s great outdoors.

Wizard World Comic Con St. Louis | April 5 – 7

A pop culture explosion is taking place when Wizard World Comic Con St. Louis returns to America’s Center and The Dome. This must-see event offers something for everyone from movies, comics, gaming, anime, wrestling, art, collectibles and more!

Coppélia presented by Saint Louis Ballet | April 5 – 7

A great comic ballet of the 19th century, Coppélia is the story of a “mad” inventor and the doll he creates that is so life-like the village boy falls in love with it. Coppélia remains as one of the most beloved classical works in the ballet repertory. Based on two stories by E.T.A. Hoffman and with music by Leo Delibes, it is Saint Louis Ballet Artistic Director Gen Horiuchi’s eighth full-length production for the company, closing the mainstage season with wit and charm. This show is joyful, light-hearted and, definitely, family friendly!

GO St. Louis  Marathon & Family Fitness Weekend | April 6 – 8

This popular competitive fitness event attracts more than 25,000 participants and includes races for all ages and fitness abilities. The weekend includes a full marathon, half marathon, marathon relay, 7K, 5K, children’s fun runs, and more!

Gerard Craft Dinner at the Gateway Arch | April 12

Join the Gateway Arch Park Foundation for an incredible culinary experience inside the Museum at the Gateway Arch with special guest, chef Gerard Craft. Craft is the James Beard Award-winning chef behind Taste by Niche, Brasserie by Niche, Pastaria, Sardella, and Cinder House. Featuring the flavors of Cinder House at the Four Seasons Hotel St. Louis.

Cirque du Soleil Corteo | April 24 – 28

Corteo, which means cortege in Italian, is the latest enchanting Cirque du Soleil arena production. A joyous and festive parade imagined by a clown, the show brings together the passion of the actor with the grace and power of the acrobat to create a theatrical world of fun, comedy and spontaneity situated in a mysterious space between heaven and earth.  The enchanting production comes to St. Louis in April on a tour of North America.

St. Louis Earth Day Festival | April 27 – 28

The annual St. Louis Earth Day Festival in Forest Park is an opportunity for the community to celebrate the Earth while learning about resources, products and services that enable practicing Earth Day every day. Enjoy three stages of entertainment, local food, 200+ booths, and hands-on activities for the whole family.

Chinese Culture Days | April 27 – 28

You don’t want to miss Chinese Culture Days at the Missouri Botanical Garden. For more than 20 years, this annual springtime festival of Chinese culture has featured: acrobatics, square dances, tea and cooking demonstrations, traditional artwork, authentic regional cuisine and activities in the Grigg Nanjing Friendship Chinese Garden.

Actress and singer Jennifer Hudson’s former Upper West Side pad is back on the market at the storied Apthorp, at 390 West End Ave.

But this four-bedroom unit, where she lived from 2015 to 2016, costs far more than a song: The 11th-floor unit is listed for $7.9 million.

The gut-renovated residence also comes with three full bathrooms and a powder room.

It features a living room with a fireplace, a formal dining room with a fireplace and a windowed eat-in kitchen.

Details include chevron oak floors and handcrafted ceiling moldings. As for amenities, there’s a gym, an entertainment suite and a children’s playroom.

Built by William Waldorf Astor in 1908, the Apthorp is on the National Register of Historic Places.

The listing brokers are Anthony Barillo, Fredrik Eklund and John Gomes, of Douglas Elliman.

One of the biggest games of the year is approaching and you’re hosting, but are you completely prepared for “Super Bowl Sunday”?

Whether you’re cheering for The Patriots or The Rams, or you’re just here to watch Maroon 5 rock it out at half-time, these tips will help you get your home ready for all the food, fun, and guests that come along for the party!

Plus, read until the end to find some of our favorite Super Bowl Sunday recipes!

Get Your Home Ready

When you are preparing for a lot of guests to come over, the first room you’ll want to tidy up is your entryway. Be sure to make it easy for guests to leave their shoes and hang up coats. If you don’t have a traditional entryway, you can find an inexpensive coat rack.

The next room to prep for Super Bowl Sunday is your family room or living room where the action happens. First and foremost, make sure your TV is working, speakers are working if you have them, and have the correct channel ready to go. You will also want to make sure you have enough space for people to sit around the TV. Take note of how many seatable items you have. Asides from your couch, you may want to add some folding chairs, ottomans, or even pillows and cushions for floor seating.

Get your decorations ready

If you want to create a festive and fun environment, you can find napkins, plates, silverware, and other party favors in both team's colors. You can also dress up your food for the occasion by having team-colored snacks and football-shaped foods. Find our favorite recipe ideas below.

Get Your Kitchen Ready

Even though the main point of this party is the big football game, there’s a lot of action taking place in the kitchen too, so you definitely need to have this room ready! Clean up your table or counter space to ensure there is enough room for all of the yummy snacks. Also, have an area set up with a utensil holder full of plastic silverware as well as napkins and paper plates. 

If you have guests with food allergies or dietary restrictions be sure to have an area for foods just for them, this is something they will definitely appreciate. You will also want to empty your trash can before your guests arrive so there is plenty of room to throw away garbage (hopefully this will reduce the clean up after the game too!)

BONUS TIPS:

You may want to turn your AC down a bit, as having a lot of people in a small space, it can get pretty heated quickly (and not just from the arguing of whose the better team).

Also make sure that your bathroom is clean and well stocked with hand soap, hand towels, tissues, and other toiletries your guests may need. You can also put a sign up pointing to the bathroom to point your guests in the right direction without being bothered about where it is every few minutes.

Source: Fabeveryday.com

Ruben Gonzalez, chief economist at Keller Williams, provides a high-level analysis of U.S. housing market trends and shares his outlook for 2019.

Throughout the year, we saw a housing market that was defined primarily by low inventory levels, restricting sales and driving up prices. But things have shifted in the last couple of months.

Higher Mortgage Rates

The impact of higher mortgage rates is beginning to have a noticeable effect on demand. We are now hearing more about buyers pushing back on home prices. Inventory remains low in most markets but is growing steadily, while price growth has slowed to less than 5 percent in many areas.

First-time home buyers are dealing with smaller budgets because of these rate increases, and sellers are now in a situation where they would have to take on a mortgage with significantly higher interest. While mortgage rates are still historically low, the difference in rates is likely to impact their decisions.

A Positive Outlook

The good news is that economic factors are still strong and should continue to promote housing. Unemployment levels are low, incomes are rising, and the economy continues to grow. The stock market has experienced some volatility, but it will most likely only be weighing on the minds of wealthier consumers.

In the future, we are going to see slower price growth and declining sales levels (we anticipate a 2 percent decrease). But sales should continue at a healthy pace if the economy remains strong.

For a more comprehensive housing forecast, read Gonzalez’s comments in Forbes.

About Ruben Gonzalez

Ruben Gonzalez is the chief economist at Keller Williams. He leads in-depth research efforts and tracks leading indicators that impact the housing market.

Gonzalez creates ongoing housing forecasts and regularly provides commentary on real estate market trends to a range of national business, real estate and financial news outlets.

Gonzalez received his undergraduate degree and earned his master’s degree in economics from The University of Texas at Austin.

Every year at this time there are many homeowners who decide to wait until after the holidays to list their homes for the first time, while others who already have their homes on the market decide to take them off until after the holidays.

Here are seven great reasons not to wait:

1. Relocation buyers are out there. Many companies are still hiring throughout the holidays and need their new employees in their new positions as soon as possible.
2. Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy NOW!
3. You can restrict the showings on your home to the times you want it shown. You will remain in control.
4. Homes show better when decorated for the holidays.
5. There is minimal competition for you as a seller right now. Inventory of homes for sale traditionally slows in the late fall, early winter. Let’s take a look at listing inventory as compared to the same time last year:

6. The desire to own a home doesn’t stop when the holidays come. Buyers who were unable to find their dream homes during the busy spring and summer months are still searching!
7. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge and reach new heights which will lessen the demand for your house in 2019.

Waiting until after the holidays to sell your home probably doesn’t make sense.

The survey looked at 583 cities across the categories of economy, cost of living, diversity, education, and income to narrow the list to 50.

Money magazine, partnered with Realtor.com, released its annual list of 50 best places to live in the country. On the list were two Missouri cities: St. Charles, ranked at 32, and Lee's Summit, ranked at 41. 

According to Money, the magazine only considered cities with a population of 50,000 or more. It nixed anyplace that didn't meet a few standards—qualifying cities had to have relatively low crime and a good sample of diversity—and ended up with 583 cities. It then sampled data across the categories of economy, cost of living, diversity, education, and income, assigning reporters to interview denizens and scout neighborhoods, to come up with the list of 50.

What did the Money team find appealing about St. Charles? "Today, the people of St. Charles appreciate their city as a nice place to raise kids, with great schools, little crime, and reasonably priced homes," editors wrote. It also called out Main Street's restored buildings, the Festival of the Little Hills, and the Christmas Traditions Festival.

Lee's Summit got high marks for its Legacy Park, 692 acres complete with an amphitheater and a lake. 

Both cities' housing and income stats were pretty comparable. Homes in the St. Charles area will run you $197,000; Lee's Summit houses cost $229,000 on average. St. Charles' median family income is $76,695; Lee's Summit families take home on average $98,237.

One area where they differed: St. Charles' expected job growth rate from 2017 to 2022 is more than 8 percent. Lee's Summit residents are looking at a job growth rate of 2.69 percent.

The best place to live in 2018 according to Money magazine? Frisco, Texas, where jobs are projected to increase 15 percent over the next four years.

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insights report reveals that home prices have appreciated by 6.2% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.1% over the next year.

Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have already increased by half of a percentage point, to around 4.5% in 2018. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by half a percentage point to around 5.1% by this time next year.

An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home which you can then tap into later in life. As a renter, you guarantee your landlord is the person building that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Here are five reasons why listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! In fact, more often than not, multiple buyers end up competing with each other to buy the same homes.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now 

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon!

Historically, a homeowner stayed in his or her home for an average of six years, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all that they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 44 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The abundance of inventory available in these higher price ranges has created a buyer’s market for anybody looking to purchase these homes. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life 

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you feel you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Whether you are buying or selling a home, it can be quite the adventure. In this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO,’ but it’s not as easy as it may seem. That’s why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal!

The 5 reasons you need a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates and home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. So you found your dream house, now what?

There are over 230 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start in order to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you its true value. According to a recent article by the National Association of Realtors, FSBOs achieve prices significantly lower than the prices of similar properties sold by real estate agents:

“FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent.”

Get the most out of your transaction by hiring a professional!

5. Do you know what’s really going on in the market?

There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?