St. Louis Real Estate-Market Watch March 28th, 2008

Filed under: St. Louis Market Reports

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
March 28th, 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 in our usual Spring trends with increased active listings, a pending ratio very close to 16%, and our average list prices just inching up slightly.  In most price ranges, though, we are still below the average list prices we saw a year ago at this time.   Our inventory levels in St. Louis are remaining in that Transitional range of 5–7 months, with 6 price ranges falling below 6 months of inventory.

With these levels of inventory and buyer activity increasing, we see most of the price ranges are still within a 2% – 3% market when you compare listing price against selling price. It’s important to remember that these are six month averages, and it still holds true that the longer a home is on the market, the more likely it is to sell below that 2% – 3% average. 

Granted, the National news regarding housing and the over-all economy is not very encouraging right now, but for buyers and sellers in the St. Louis Market, it still remains a good time to buy or sell if you need to be in the marketplace.  Also, bear in mind that our St. Louis Real Estate Market, or any real estate market for that matter, is VERY local and is affected greatly by the area’s macro-economics as well as the National economic trends.

According to RISMedia, the Fed’s rate cut last week has helped comsumers in some ways, however, our “credit crunch” is still not likely to end much before the end of the year.  With the rate cut, comsumers may see a reduction in rates on credit cards, car loans, and other various comsumer loans, along with rate reductions in certificates of deposit and savings accounts. The rate cut won’t necessarily make mortgages cheap and easy again, as lending requirements have tightened and investors and traders are still not running to buy mortgage backed securities after being burned in the past.   Read the complete article at RISMedia.

Now add in the fact that consumer confidence plunged to a five year low in March. To quote RISMedia again, “The Conference Board, a New York based industry group, said it’s comsumer confidence index dived to 64.5 in March, down dramatically from February’s 76.4 and significantly short of the 73.5 reading that many economists had been anticipating.”  This sounds like even the “experts” are uncertain as to where and when this market will turn around.  To read the rest of this article, go to RISMedia.

 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 March 28th, 2008

St. Louis Real Estate Jefferson  County  Market Watch March 22nd, 2008

St. Louis Real Estate St. Charles County Market Watch March 28th, 2008

St. Louis Real Estate Benchmark Report March 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 Wagner   |   Read More   |   Your Comments Are Welcome!   |   03.30.2008

St. Louis Real Estate-Market Watch March 22nd, 2008

Filed under: St. Louis Market Reports

St. Louis Real Estate Market Watch by Art Wagner @ Keller Williams Realty Southwest, Sunset Hills, Mo.
March 22^nd, 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 is WET!!  The two days plus of rain we experienced this past week has created more challenges for buyers and sellers.  Who ever said, “If you don’t like the weather in St. Louis, wait a day or so” has been proven correct again.  This past week we’ve gone from summer temperatures to Spring rain storms and flooding to snow. 

Our weather however, hasn’t put much of a damper on our market moving towards spring with the pending ratio climbing to 15.97 percent over last week’s 15.06 percent. 

The Fed, once again, is trying to help push our economy into spending action by cutting the federal funds rate by Three-quarters of a point this last week to 2.25 percent.  With this cut, the prime rate will also drop three-quarters of a piont to 5.25 percent.  Their ultimate goal obviously is to encouragge comsumers to borrow and spend more to revive the economy. 

Indications from a lot of experts forecast that with the uncertainty by comsumers of the economy, the stock market and the slump in the real estate market that it could take the rest of the year to see improvements in borrowing and spending.  We are still in a climate of lenders hesitant to lend and comsumers hesitant to spend. 

For good insight into this situation, check out Bankrate.com’s article by Holden Lewis, here.  You can also go to RISMedia for additional info and insight.

With our conservative Midwest values, I’m sure a good number of buyers and sellers will  tend to follow the forecast trends and wait to get into the marketplace.  That could be a good strategy for buyers, but somewhat of a risk for sellers if home prices do indeed continue to decline into the year.  Even the “experts” warn that trying to “time the market” is a difficult task, if not impossible.   

 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 March 22nd, 2008

St. Louis Real Estate Jefferson  County  Market Watch March 22nd, 2008

St. Louis Real Estate St. Charles County Market Watch March 14th, 2008

St. Louis Real Estate Benchmark Report March 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 Wagner   |   Read More   |   1 Comment »   |   03.23.2008

St. Louis Real Estate – Home Staging – BLING

Filed under: For Sellers, Home Staging

Home Staging…It’s NOT Just About Vacant Houses!

Home Staging is the process of preparing a home for sale, regardless of price, location, or condition (Barb Schwarz, Creator of the Staging Concept).

From my experience as an Accredited Staging Professional (ASP), I continually receive inquiries for Home Staging Services, predominantly for vacant homes. I love staging vacant homes! It provides me with a “blank palate” to be creative in using my professional staging skills to define space and function of rooms and areas, as well as accentuating the special features of a house for sale.

BUT…there is so much MORE that Home Staging Services can offer Realtors and Home Sellers at affordable costs which can really impact the overall appearance of the house.

My favorite Home Staging Service to provide to Realtors and their Home Sellers is a Verbal Staging Consultation. Within my business, the dollar investment for this Home Staging Service typically ranges from $75-$150 and the time investment for the Home Seller is typically 1-2 hours. As an ASP Stager, when I meet motivated Home Sellers who are receptive to making changes in their home to present it in the Best Possible Showing Appearance, this type of consultation is all they need!

A Verbal Home Staging Consultation begins by sharing the general concepts of Home Staging. Then, the Home Seller is encouraged to grab a pen and paper and we are off! Looking at each room and/or area of the house, general and specific staging recommendations are shared and the reasons for the recommendations…furniture re-arrangement, de-cluttering, defining space and function, accentuating special features…ideas are quickly shared with the Home Sellers to changes that will appeal to a wide range of potential buyers.

What I have overwhelmingly found after these Verbal Staging Consultations is that this affordable, 1-2 hour consultation really helps Home Sellers to look at their home in a different way….through the eyes of potential buyers. I find that the majority of my clients understand why I made recommendations and after I leave they make the changes. The results…on a revisit that I make (at no extra charge), my clients have typically made dramatic changes through their own staging that I feel, as a professional, presents their home in a much better showing appearance. Some of my clients’ staging work looks as if a professional stager had completed the project!

As a Realtor or Home Seller, have you considered contacting an ASP Stager for a Verbal Staging Consultation? If so, did it help, did it make a difference in the overall appearance of the house? If not, WHY NOT? It’s affordable, it’s valuable information, and a consultation such as this is just another step to getting your house in the Best Possible Showing Appearance!

The pictures on the MLS will look their best as well, drawing potential buyers to make that appointment to view the house in person.

Home owners, if you are considering placing your home on the market, consider a Staging Consultation from an ASP Stager. If you already have your home on the market and it is has not sold…it is never to late to stage your home, consider a Staging Consultation as well.

Realtors…consider using an ASP Stager to offer additional value services to your clients, whether you pay for the Staging Consultation yourself or refer your clients to an ASP Stager.

Remember New Conventional Wisdom: What sells a house?…
Price, Location, Condition, Best Possible Showing Appearance, and Great Internet Marketing!

Need to find an Accredited Staging Professional in your area? Want to find out more consumer-related information regarding Home Staging? I encourage you to visit www.stagedhomes.com, http://www.stlstaging.com/ , or feel free to contact our staging team at homestaging@stlouisrealestatevoice.com.

Tags: St.+Louis+Real+Estate, Home+Staging, Vacant+homes, ASP+Stager

Posted by Doug Aegerter   |   Read More   |   1 Comment »   |   03.23.2008

St. Louis Real Estate – Mortgage News – The NEW King

Filed under: First Time Home Buyer, For Buyers, Mortgage News

FHA is the King! The top Dog!

The new economic stimulus package has allowed HUD to raise its maximum loan amounts for FHA loans depending upon the county of the property. For those in the St. Louis, Missouri area, that means we now can do an FHA loan for up to $281,250. The previous amount was $213,750, so that is a huge jump, almost a 33% increase.

So who can take advantage of this? You could spend days Googling FHA loans to get all kinds of information about the FHA insured loan so I won’t waste you time covering everything. What I will do now is touch on the opportunities that I think will make the most amount of practical use for the clients that I see on a daily basis.

1) First time homebuyers: With the end of the conventional 100% financing (see previous post) now more than ever this will be the product of choice for first time homebuyers who have little or no money down. FHA requires a 3% down payment; however those funds can be gifted to the borrower from a relative. The gift does not have to come all from the same relative either. You can get part from one parent, part from another parent or their siblings such as an aunt or uncle and then you can get more from another relative. Thus on the $289,950 purchase price that the borrower needs $8,750 for a down payment, they can get that from various relatives or at least the part that they have not saved up on their own. They can also borrow the money for a down payment, as long as the loan is secured and has a repayment period of at least 5 years. That payment counts against their debt to income ratio, but makes borrowing against a car, a boat, a certificate of deposit or a 401K an option for coming up with all or some of the down payment.

2) Refinance to get out of an 80/20 loan. The second mortgages on these loans were priced higher than the rate on the first. Many people regretted getting them, but because of the change in Conventional guidelines, they were not able to refinance the loans since they owed over 95% of the appraised value. On an FHA loan, we can refinance them at 97% loan to value if we are paying off liens on the property. A great way to get those people out of 2 mortgage payments and into one at a FIXED rate.

3) Refinance for cash out. Both Fannie and Freddie have made it darn near impossible to get approved for conventional cash out loan over 80% loan to value. First your FICO score has to be over 720 and then good luck getting mortgage insurance on the loan. With FHA we can go to 95% loan to value and thus help get people out of the credit card debt or other challenges that are overwhelming them. It will also allow people to borrow money to improve their property, which in the near future will be a key to helping people hold their property values.

These are just a few of the ways the FHA loan can be used.

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

Tags: St.+Louis+Real+Estate, St.+Louis+Mortgage+News, FHA, HUD, Home+Buyers

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   03.19.2008

St. Louis Real Estate – Mortgage News – 100%

Filed under: First Time Home Buyer, For Buyers, Mortgage News

The End of 100%!

In the ever changing landscape of lending, we had the latest and most significant change take place this past Monday. All of the Private Mortgage Insurance Companies announced that they would no longer issue mortgage insurance on any loan with a loan to value greater than 97%. On a side note I can remember when we could only do a 97% loan and then just one of the mortgage insurance companies said they would insure up to 100% and it was months before the others joined in when the LTV was going up, but now that the maximum LTV is going down, they are all are the same page and quick to make the move.

Kind of like rats jumping off a sinking ship!

But I digress! Now there are few instances that one of the companies will honor the 100% commitment but it is in such a limited scope that you have a better chance of winning tonight’s Powerball drawing than getting a 100% loan.

So why are they doing this?

First of all they are all taking a bath financially in mortgage insurance claims on loans that are in default and foreclosure due to the current mortgage crisis. Some would argue that they have been making money hand over fist for years as their losses have been limited as the housing prices grew and mortgage rates were declining or low, but keep in mind that during that time that they had to fight to keep market share and revenues as the banks created the second mortgages that would go to 100% and in the industry it was common practice to do a first mortgage for 80% and the second for the remaining amount to avoid mortgage insurance. So let’s not rush to judgment on the profits of the mortgage insurance companies over the last 7 years.

Secondly and more importantly, we are seeing house values in some areas decline. So if they did insure a loan that was a 100% loan in one of those areas and the house price has declined, they are now insuring for over 100% of the value of the house. How smart is that?
Where does this leave us? Thanks to the stimulus package that was passed we now have higher FHA loan limits and in most cases the cost of the monthly mortgage insurance will be less on an FHA loan.

Also, in the old days, before 100% financing, we did most loans using gifts, tax returns, SAVINGS, as a way to come up with the initial 3% for a down payment. Imagine that, you have to save some money to buy a house?

I will write more on the increase in the FHA loan limits and the opportunities that are presented by this later this week.

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

Tags: St.+Louis+Real+Estate, St.+Louis+Mortgage+News, Buyers, Sellers, FHA, LTV

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   03.18.2008

St. Louis Real Estate – Market Watch – March 14, 2008

Filed under: St. Louis Market Reports

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! 

FIRST-OUR SINCERE APOLOGIES FOR POSTING THIS SO LATE.  WE HAVE HAD SOME TECHNICAL ISSUES ARISE THIS WEEKEND AND WERE UNABLE TO POST UNTIL TODAY. 

The St. Louis Real Estate Market this week continues to show signs that Spring is on it’s way.  Active Listings are above the 5000 mark. Buyer activity remains strong as more homes are accepting contracts with the pending ratio remaining above 15 percent.  Our inventory levels in most price ranges seem to indicate that we are in a Transitional or Balanced Market with 5–7 months of inventory.

The $150,000–$174,999 price range has fallen below 5 months of inventory, indicating a temporary “sellers market” in that price range only.  That probably won’t last long, as more homes will come on the market toward spring, but now that’s a great sign for sellers in that price range.  Sellers should have a better chance of selling closer to their list price, provided they are priced within market value and the home is “show” condition.

Buyers-There’s plenty of inventory in the marketplace now, so HAPPY HUNTING!!  Choosing to wait until spring to buy to see what else comes on the market may be a benefit, as home prices are still forecast to decline slightly, but along with the additional inventory will come additional buyers into the marketplace to compete with you for your new home.  Either way, buyers are still in a great place at a great time.

 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 March 14th, 2008

St. Louis Real Estate Jefferson  County  Market Watch March 7th, 2008

St. Louis Real Estate St. Charles County Market Watch March 14th, 2008

St. Louis Real Estate Benchmark Report March 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 Jason   |   Read More   |   Your Comments Are Welcome!   |   03.17.2008

St. Louis Real Estate – Market Watch – March 7, 2008

Filed under: St. Louis Market Reports

St. Louis Real Estate Market Watch March 7, 2008 by Doug Aegerter@ Keller Williams Realty Southwest, Sunset Hills, MO.

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 again by the pending ratio staying up over 15%. 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.

It’s interesting to note that in almost all price ranges homes are listing lower than last year but selling close to the same price for the same time period one year ago. That would seem to indicate that the housing market in St. Louis County is not caving in but that the sellers are pricing homes closer to reality and digging in on the offers. It’s taking longer to sell (DOM) and the number of homes sold are fewer, but note the price range stability! If you’re getting ready to compete in this market now is the time to get a <a title=”FREE< FREECMA from us and have a consultation with a home staging expert. You absolutely have to get the selling price right and put your best foot forward.

If you enjoy following the weekly market reports. . . why not subscribe? here

Oh, and we love to see the comments, so bring them 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 March 07, 2008

St. Louis Real Estate Jefferson County Market Watch March 07, 2008

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

St. Louis Real Estate Benchmark Report March 2008

Market Watch and Benchmark Report Key

Doug Aegerter can be reached at doug@stlouisrealestatevoice.com

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   03.09.2008

St. Louis Real Estate – Opps

Filed under: Real Estate News

Holy Cow, we just found out our email accounts are down. Please use the post “comments” to contact us. We expect to have this resolved in the next couple of days. Thanks for your patience.

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   03.04.2008