St. Louis Real Estate-Market Watch February 29th, 2008

Filed under: Real Estate News

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 29th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome!

The St. Louis Real Estate Market this week continues to show better buyer activity as evidenced by the pending ratio pushing up over 15% for the first time since August 2007. In some of the price ranges between $125,000 and $299,000 pending ratios are as high as 18.7%. Homes that are on the market now are selling, and those that are priced at market value are selling quickly.

HOWEVER, don’t get buyer activilty and increased home sales confused with pricing. Home prices still continue to decline, and by all indications and predictions by the “experts”, we will continue to experience home price declines into the third quarter of this year. Some predictions even say we’ll go into 2009 before things start to improve significantly.

For sellers and buyers that need to be in the marketplace now, this is a great time before spring. The market is what it is and we have to deal with it.

For a 180 degree look at the housing and mortgage situation, check out Lou Barnes’ article at http://www.inman.com/ entitled, “Starved credit wrecked housing, not vice versa”.

One of our readers, who has been following the real estate market and doing their due diligence sent us this comment this past week:

“Your write-ups are so routinely biased to the bullish side of the equation. You choose to focus on the year over year and ignore the 4^th quarter number. Clearly, Saint Louis is just beginning to break down as the 4^th Quarter in Saint Louis is among some of the worsst cities. I have been watching listings routinely slash prices over the last month. This should not be taken lightly. Of course, when your trying to sell houses…obviously your information will be biased. I wish everyone knew that real estate agents are basically a worthless source of information. I know you can’t help yourself…buyers just need to be informed how real the conflict of interest is with regards to agents.”

Our response was fairly lengthy, so we won’t print it here, but in a nutshell we said that they were correct that the 4^th quarter home pricing statistics for St. Louis were indeed one of the worst of the cities surveyed. Out of the top 34 markets surveyed, St. Louis / Illinois area ranked no. 32 out of 34 with a 6.52% decline in home prices in the 4^th quarter of 2007. We went on to say that we are striving to portray the St. Louis market as it really is, and not as the media and national averages tend to portray us. Unfortunately, now after the 4^th quarter last year, we really do mirror the national averages.

Our goal at the St. Louis Real Estate Voice is to educate buyers and sellers, whether they be “first timers” or “old hats” at the game of real estate. If we seem a bit “bullish” so be it! If we can offer some positives in this market that tends to dwell on all the negatives, we will. The goal here is honest, accurate information to help anyone who is in the real estate market.

We love to see the comments, so bring it on!!

For some great information regarding the real estate market and a really cool home-value calculator, check out the report just released by the Office of Federal Housing Enterprise Oversight (OFHEO) at http://www.ofheo.gov/.

Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch February 29th, 2008

St. Louis Real Estate Jefferson CountyMarket Watch February 22, 2008

St. Louis Real Estate St. Charles County Market Watch February 29th, 2008

St. Louis Real Estate Benchmark Report January 2008

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category.

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year.

The Market Analysis includes data on:

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM

Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   1 Comment »   |   02.29.2008

St. Louis Real Estate - Mortgage News - Bond Rally

Filed under: Mortgage News

Fed Chair Comments start slight bond rally! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

In Ben Bernanke’s testimony yesterday before Congress he painted a grim picture on the current economy and has given every inclination that the Fed is poised to deal with the recession fully knowing that all that they do to fix the economy now will mean that they will have to reverse, once the economy is going, to stop the inflation that is currently happening.

So what does that mean to you? Short term rates are going to go down further. Your credit card rates and home equity rates should come down some for the next 6-12 months. However, once the Fed sees the economy start to recover and they begin their inflationary fight, those rates will go up and they will go up quickly. Long term rates in theory should come down, however if you review Mr. Bernanke’s testimony, you will see that even when pressed on why the disparity between short and long term rates, he was elusive and evasive in his reply and hung his hat on not commenting on short term price fluctuations in the markets. So what does that mean? Well what it says is that he is aware that his words carry huge weight with the money managers of the world and if he was to voice an opinion it could have a tremendous effect on the movement of those markets.

So when are long term rates coming down? If you follow the money, always the answer in solving any problem, the major money managers have been building their cash positions. With so much uncertainty in the markets, percentage of cash has increased in almost all investment funds. Once the money managers have a clear idea of the direction of the Fed, you will see them begin to take their positions and use up that cash. Here is the simple truth, if they have cash and are being paid money market rates for that cash, if the Fed lowers rates, then they will earn less on that cash. At some point they will have to move that cash into positions that will guarantee a return for them and the fixed equity market, i.e. bonds and mortgage backed securities will probably be the choice for that. They can lock in their return and know that when the Fed changes direction either later this year or early next year that they will be able to unload those investments and get into more lucrative opportunities. Therefore, it is my belief that we are going to see in the near future, next 30-60 days long term rates come back down below 6 % and we may even see rates close to the 5.5% level. The period of time that they will be there will be brief, could be as short at 24 hours and as long as a month, but once they hit the bottom, they will bounce hard back and we will be hard pressed to see those rates for a long time.

My recommendation to any borrower is get in touch with your lender of choice and be prepared to take advantage of these rates when they come. It may be YEARS before we see them again.

For questions or comments, please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   Your Comments Are Welcome!   |   02.28.2008

St. Louis Real Estate - Building Inspection - Basements

Filed under: Building Inspection News

BASEMENTS by Harry Morrell, Allied Building Inspections, LLC

Basements are common throughout the St. Louis metropolitan area, and are very popular for a variety of reasons. Extra storage space for one, but many of today’s home buyers look for more than just storage. Finished basements are becoming more and more popular for living, recreation, or entertainment rooms. Keep in mind that I referred to the basement as a room. When you install ceilings, walls, and carpets, that cold damp basement with bare concrete walls and floors suddenly becomes a living space in your house. This is exciting but there are serious concerns.

Early water control within basements in older homes was never a big issue. These typical stone foundation basement would seep ground water, which was absorbed by the dirt floor. When basement floors were first poured with concrete, floor drains were added and the slab was heavily pitched. This allowed the utilitarian use of the basement for mechanical equipment and laundering needs. As construction methods progressed, masonry block and poured concrete foundations were installed. Exterior drain tile systems were installed to help control high water tables, interior sump pumps were added as well to help with water problem. So far, an unfinished basement with laundry and mechanicals only is still not a big concern as far as water and moisture penetration affecting the interior spaces of the basement. The general feeling was, OK we have some water intrusion. The water will drain to the floor drain and we will have a nice dry basement in the summer.

Fast forward to the year 2008 with your up scale finished lower level, (Do not call my lower level a basement anymore) Finished walls and ceilings and expensive carpet make for a truly livable space for family and entertainment, however now more than ever you cannot afford to have any water or moisture intrusion at all. Mold can develop very easily and cannot be detected visually if you do not know what to look for.

Your home inspector will check these walls carefully with a moisture meter and scrutinize the exterior drainage, grading, gutters, and downspouts very carefully. In addition to making sure the sump pump is operational with a dedicated sump pump drain pipe, the inspector will recommend a battery back up for the sump pump to ensure the pump is operational when electrical service is interrupted. This is when you need that sump pump to do its job the most.

Your inspector will go over the details of the operation of drain tiles and sump pumps, and let you know the condition of the grading and drainage at the time of your inspection. Be sure and voice your concerns before investing in that expensive finish work.

Harry O. Morrell
ASHI Certified Inspector
ASHI#203651

Harry can be contacted at harrymorrell@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   Your Comments Are Welcome!   |   02.28.2008

St. Louis Real Estate - Market Watch February 22, 2008

Filed under: Real Estate News

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 22nd, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

Our St. Louis Real Estate Market moves forward with increased activity spurred by the latest interest rate activity and the anticipation of Spring.  Check out our current Market Watch Reports below for the current details.

More news on the St. Louis Real Estate front comes this week from and article published by Inman News entitled, “Q4 home prices fall in 76% of U.S. zip codes tracked.”

According to the article, a mortgage data aggregator, First American CoreLogic tracked 7,472 zip codes in the U.S. and found that in 76% of them home prices have dropped. They also stated that “just over half the zip codes in the U.S. saw price declines for the year, with trends varying widely by state.” 

Their report, the “LoanPerformance Home Price Index” saw 30 of the top 34 markets tracked by the Index showed price declines.  “All but 10 of those markets saw year-over-year price declines.”

The St. Louis-Ill. Real Estate Market showed a fourth quarter price drop of 6.52% and a year over year price drop of 3.98%. 

3.98% as a year over year price drop is one of the smallest price drops reported in the article.  SO…our market may be a bit slower than a year ago, and prices may be a bit deflated, but we are in a lot better shape than a lot of the markets in the country. 

Read the complete article and check out the other markets surveyed at Inman News.

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch February 22, 2008

St. Louis Real Estate Jefferson  CountyMarket Watch February 22, 2008

St. Louis Real Estate St. Charles County Market Watch February 15th, 2008

St. Louis Real Estate Benchmark Report January 2008

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   1 Comment »   |   02.23.2008

St. Louis Real Estate-Market Watch February 15, 2008

Filed under: St. Louis Market Reports

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 15th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

The St. Louis Real Estate Market this week again is showing more active listings and more accepted contracts (pendings), up from last week. The pending ratio, following that trend, is near 14%.  We also see less expired listings, as sellers are beginning to get into the market or back into the market in anticipation of increased buyer activity. 

The buyers we talk to are a bit more motivated with the lower interest rates and the anticipation of being in their new home by Spring. 

One of the most important issues for a buyer now is to make sure they are qualified for a loan.  With all the major shake-ups in the mortgage industry lately, buyers should be in contact with their mortgage lender BEFORE they look at a home.  If a buyer was pre-qualified last month doesn’t necessarily mean they are still qualified for the same loan program.  The other suggestion we strongly make to our buyers is to have a second mortgage lender in their pocket.  A second opinion and a back-up plan is not only a good idea, it’s essential today.

The sellers we talk to are encouraged to see the interest rates at almost record lows, as they hope to have more showings on their home as more people should be able to buy at the lower rates.  This is also a great time for sellers to get into the market to get ahead of the large influx of homes coming on the market once we do arrive at Spring.    

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch February 15th, 2008

St. Louis Real Estate Jefferson  County Market Watch February 8th, 2008

St. Louis Real Estate St. Charles County Market Watch February 15th, 2008

St. Louis Real Estate Benchmark Report January 2008

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   1 Comment »   |   02.16.2008

St. Louis Real Estate - Home Staging - 101

Filed under: Home Staging, Real Estate News

Today we welcome a new guest to the St. Louis Real Estate Voice. We are pleased to have Sue Rector from HomeStaging Innovations, LLC and her team from www.WeStageStLouis.com join us as contributing members. Sue and her team will post bi-monthly articles about Home Staging and how it could make the difference in getting your home SOLD! – Doug Aegerter and Art Wagner, St. Louis Home for Sale Team.

STAGING®….The New BUZZ Word in St. Louis Real Estate by Sue Rector, ASP Stager, HomeStaging Innovations, LLC

Home Staging is a fairly new concept here in the Midwest; however, this process of preparing a home for sale has been around for a long time, especially on the West Coast. The word “STAGE®”, as it refers to turning a home into a product for sale, was coined by Barb Schwarz, over 30 years ago. Barb Schwarz began her career in residential real estate in 1976 in Bellevue, WA. She realized that challenges existed in how she communicated to her clients about ways to get their homes in the best possible showing appearance, without offending them. Barb started educating her clients on “how to set the scene and how to set the STAGE®” in order to get their properties sold fast and for the most dollars. This is when she coined the phrase “Staging the home for sale”. In 1990, the US Government granted Barb, the Stage® Federally Registered Trademark. The rest is Real Estate history! Barb Schwarz is the CEO and Founder of Stagedhomes.com, which prides itself as “The World Standard in Staging Education”. Through Stagedhomes.com, Barb has developed the “Accredited Staging Professional™ (ASP™) Course”. An ASP is an Accredited Staging Professional trained under strict guidelines using proven Staging techniques developed and used successfully by Barb. The ASP™ designation, which is earned through this course work, is one that consumers have begun to recognize as the True Professionals in this fast growing business…which is part of the Real Estate Industry and not the Decorating Industry.

In addition to developing professional staging education, Barb Schwarz was also instrumental in the creation of the “International Association of Home Staging Professionals (IAHSP)”. In any industry or profession, it is the standard to have a professional association to build its members’ level of knowledge and abilities, as well as maintaining a standard of excellence. In addition to professional development, IAHSP has also dedicated itself to widening community service projects through its annual “World Wide Staging Services Week” in the fall of each year. These are the goals of IAHSP with over 50 chapters in the United States, as well as Canada. The local St. Louis Chapter of IAHSP meets monthly for all interested area ASP Stagers and ASP Realtors to share ideas, learn new ideas, and to perform community service activities.

Need to find an Accredited Staging Professional (ASP) in your area? Want to find out more consumer-related information about Staging? Maybe you want to become an ASP.

I encourage you to visit www.stagedhomes.com for information regarding the above and/or feel free to contact our Staging Team at homestaging@stlouisrealestatevoice.com.

Be mindful when looking for an ASP in your area. It is important to find one with an established business, insurance, references….and equally as important are success statistics for their staged properties. What is their average days on market until an accepted contract and what is their average % of the List Price at the time of closing? These will be important questions to ask and have answered as you consider staging services for your home.

More Staging information in the weeks to come from our Staging Team to keep sellers, as well as Realtors updated on how they can make their listed property STAND OUT among the large “for sale” home inventory in our St. Louis market.

Sue Rector, ASP Stager
HomeStaging Innovations, LLC
Part of the www.westagestlouis.com Team

Posted by doug   |   Read More   |   Your Comments Are Welcome!   |   02.15.2008

St. Louis Real Estate - Mortgage News - Ready, Set, GO

Filed under: Mortgage News

Gentlemen Start Your Engines! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

Fasten your seatbelts mortgage professionals. This week President Bush will sign into effect his economic stimulus package. The stimulus package contains several features designed to improve the troubled housing market.

It will increase the Federal Housing Administration’s loan limits from $362,000 to $729,750 and those of two federally sponsored entities, Fannie Mae and Freddie Mac, from $417,000 to $729,750. The FHA insures private loans made by FHA-approved lenders, while the other two buy and sell loans in the secondary market.

The measure would also enable the FHA to become more active in dealing with the direct impact of the housing crisis, permitting more borrowers facing defaults to refinance subprime loans through the federal agency.

So what does this mean to the mortgage industry?

1) Every loan that was a “Jumbo” loan that was originated in the last 4 years in all probability will be now a conforming conventional loan. That could mean a drop of up to 1.25% in the interest rate for borrowers. On $600,000 that is a savings of $489 a month. You can bet those borrowers will be clamoring for the chance to save money. Especially when the package may call for the change in the loan limits to only last for 12 months.

2) All those borrowers who have conventional loans that are over the current FHA loan limits will get a chance to refinance their first and second mortgages up to 95% of the value of their house depending upon the new FHA loan limit in their geographic area. These are the people that Fannie and Freddie have turned their backs on with the current mortgage crisis. As delinquencies rose credit standards have tightened.

3) Pipelines will swell and people will be hired to handle the increase in volumes.

4) Real Estate will recover in the following years as people have had a chance to re-adjust their budgets and dig out of the mess that was created.

For all those out there that would like to comment on this or who have one of those Jumbo loans, please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by doug   |   Read More   |   1 Comment »   |   02.11.2008

St. Louis Real Estate-Market Watch February 8th, 2008

Filed under: Real Estate News

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
February 8th, 2008
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

The St. Louis Real Estate Market this week continues to show positive signs with more active listings, more homes accepting contracts (pendings) and  consequently our average pending ratio has climbed above 13% for the first time since November 2007. 

Our St. Louis Real Estate Market seems to be keeping ahead of the national trends, however.  Check out Inman News’ article by John Burns untitled, “Real Estate’s February Report Card”.

In his article, John Burns gives an overview of the current National Real Estate Health and talks about our current economic growth, the Leading indicators, Mortgage rates, Consumer behavior and New home Markets.

In his review of Existing or Re-sale home sales he states that nationally, existing home sales have dropped to 4.89 million which represents a 22% decline over the past year.  The declining pending home sales index means that sales are likely to fall further.

He goes on to say that pricing in the re-sale markets have fallen 6.5 percent in the last 12 months according to the National Association of Realtors.

The positive note in this is that the number of homes for sale continues to decline nationally, to 3.9 million homes or about 9.6 months of inventory.  However, the supply of homes for sale still remain above year-ago levels.

The St. Louis Real Estate Market one year ago at this time had 300 fewer homes for sale (active listings) but showed a bit more buying activity with 200 more homes accepting contracts. Our pending ratio was at 19% one year ago; 6% above where we are now.  One year ago today, there were also almost 1000 more mis-priced (expired) listings. 

The point to all this— follow real estate trends through the news media, but when you need timely, accurate LOCAL information, look locally and contact your real estate agent and mortgage lender.

BETTER YET-Contact Doug Aegerter or Art Wagner at The St. Louis Real Estate Voice for up-to-date accurate market information.  

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch February 8th, 2008

St. Louis Real Estate Jefferson  County Market Watch February 8th, 2008

St. Louis Real Estate St. Charles County Market Watch February 1st, 2008

St. Louis Real Estate Benchmark Report January 2008

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 - 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 - 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by art   |   Read More   |   Your Comments Are Welcome!   |   02.09.2008