St. Louis Real Estate-November 30th, 2009

Filed under: St. Louis Market Reports

Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest Saint Louis , Sunset Hills, Mo.
November 30th, 2009
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 this week is definitely showing signs of Holiday Slow-Down.  Over the past two weeks, we’ve seen active listings decline by 243 listings and homes accepting contracts have declined by 175.   Due to this decline, our pending ratio has dropped to 12.77 percent as compared to 16.03 percent just two weeks ago. 

Blame the holidays and we think first time homebuyer activity has slowed a bit since the extension has passed.  First Time Homebuyers are not faced with such a small window of opportunity any more. Now they have until the end of April 2010 to get a home under contract and until the end of June 2010 to get their deal closed. 

After spending some time in Pontiac, Michigan last weekend, all I can say is that we should count our blessings that we don’t live in the suburbs of Detriot.

We talked to numerous real estate agents and investors who live and work in the Detroit, Michigan area and heard many accounts of homes selling for pennies on the dollar all around the area. 

It is not uncommon for homes around the Pontiac area and Flint area to be selling for 10 cents to 50 cents on the dollar.  These homes range from low price point, investor/rehabber type homes up to pretty homes in the $250,000 to $400,000 dollar range. 

Remember the Pontiac Silverdome??  A year or two ago it was valued at between 20-30 million dollars.  A couple weeks ago it sold, at auction, to a group of investors for a little over $500,000 dollars!  The sale is being challenged in court, but this may be a quick view into the future of where some commercial real estate is heading, and not just in Michigan.

The area is deemed to be so lucrative for investors these days, that many are coming from other parts of the country to invest in Michigan real estate. We even ran across an investor from Australia, who is living in Michigan temporarily and investing in properties in and around the Detriot area.

Between the problems plaguing the auto industry and the real estate industry in Michigan, their challenges are compounded greatly. 

   WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   11.30.2009

St. Louis Real Estate-Market Watch November 14th, 2009

Filed under: St. Louis Market Reports

Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest Saint Louis , Sunset Hills, Mo.
November 14th, 2009
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 moves into the bottom half of November with activity at a level much like the past several weeks-steady.  We are seeing a few less listings coming on the market, but our pending numbers (homes accepting contracts) is still very strong. 

Compared to last year at this time,  we are seeing over 200 more homes in the “pending” column with less active listings than last year.  Our average pending ratio this week sits at 16.043 percent compared to last year at 10.27 percent.

We hope to see our pending ratios through-out the winter months continue to better last year,  as the First Time Home Buyer Tax Credit extension should keep buyers, and sellers, in the market during this time period.

We are talking to sellers who have told us that they are specifically in the  market now because of the tax credit extension.  They realize that if they wait until after the first of the year,  they have a short 4 months to not only get their home sold, but to find themselves another home and take advantage of the $6500 dollar move up buyer tax credit. 

NOTE: We will not be publishing our Market Watch report next weekend, as we will be in Pontiac, Michigan for a real estate “boot camp”. The boot camp will give us more insight and education on how to help people in our challenging real estate market  with unique solutions to getting their homes bought or sold.

   While we are there, we’ll scope out the Detriot Metropolitan real estate market and see if they are showing any signs of recovery and how the Tax Credit extension is working for them.

   WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   1 Comment »   |   11.15.2009

St. Louis Real Estate-Market Watch November 7th, 2009

Filed under: St. Louis Market Reports

Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest Saint Louis , Sunset Hills, Mo.
November 7th, 2009
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 shows good activity in the lower price ranges, with pending ratios ranging from 17 percent up to 25.7 percent.  Some of the higher price ranges are also still showing pending ratios above 12 percent. 

As most of you probably already have read, President Obama signed into law last week the extension of the First Time Home Buyer’s Tax Credit with a couple of new twists.  The extension runs until the end of June 2010.  There is a caviot to the June 2010 date, however.  All contracts must be in effect by April 30th and must close by June 30, 2010.

The tax credit remains at $8,000 dollars maximum (up to 10 percent of the purchase price) for first time home buyers or anyone that has not owned a home in the past three years.  For move-up buyers that have lived in their home for five consecutive years out of the last eight years, there is a $6500 dollar tax credit now available.  So it is possible that the homeowners that are selling to the first time home buyers may qualify for a tax credit of their own when they move up to their next home.

Income levels for the credits have also been increased.  Single tax filers earning up to $125,000 per year will qualify for the full credit.  Single tax filers earning $125,000 to $145,000 are eligible for a partial credit and those earning over $145,000 are not eligible for any credit.

Joint tax filers earning up to $225,000 are eligible for the full credit. Joint filers earning between $225,000 and $245,000 will qualify for a partial credit and those earning over $245,000 will not be eligible for the credit.

With the First Time Home Buyer’s Tax Credit extension in place now, we expect to see good activity continue through the fall and winter months in St. Louis.  We will certainly see activity slow a bit as we get closer to all the Holidays, but that’s normal for our area.  After the Holidays, the tax credit extension will help to get buyers, and sellers moving again and into the market.

   WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   11.09.2009

St. Louis Real Estate-Market Watch October 31st, 2009

Filed under: St. Louis Market Reports

Real Estate-Market Watch  by Art Wagner @ Keller Williams Realty Southwest Saint Louis , Sunset Hills, Mo.
October 31st, 2009
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 showing some signs of slowing down a bit.  Active listings have dropped by about 5 percent, from 4816 last week to 4568 this week. Every price range from $100,000 up to $350,000 has seen decreases in active listings, homes accepting contracts and pending ratios. 

At this time last year, however, even with over 400 more active listings, we were showing only 527  homes accepting contracts (pending) against  769 homes pending this year at this time.  Our average pending ratio last year at this time was 10.6 percent against a pending ratio of 16.83 percent this year.

You can make the arguement that something has affected the buying atmosphere this year.  The First Time Home Buyer Tax Credit comes to mind as the number one reason, and  accounts for a large percentage of the increased activity.  The other reasons we can think of are…1) move up buyers; the homeowners that sold to First Time Home Buyers had to move somewhere. 2) Historically low interest rates are propelling a lot of buyers to act this year.   3) Buyers this year are realizing the great value for the dollar in the market and taking advantage of it.  4) Sellers and buyers both have become more “market educated” and are more willing to “work a deal out” instead of  holding fast to unrealistic expectations held over from the “boom” markets in 2004-2006. 

First Time Home Buyer Tax Credit Extension- We are hearing now that the Senate is expected to pass the legislation.  However, the details have changed somewhat. 

According to an article from the Associated Press (Andrew Taylor;10/26/09) and the Wall Street Journal (John D. Mckinnon; 10/27/09),  Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. Spending any more money on the stimulus effort also could stir up a hornets’ nest in some circles.

The proposal in the Senate that appears to have the mosst chance of passage would extend the $8000 credit through March 31, then it’s value would drop by $2000 for each of thet subsequent three quarters of 2010.  This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Chairman Max Baucus, a Montana Democrat.

 SO…Stay Tuned, as they say….

We’ll continue to keep you posted on how the Extension of the First Time Home Buyer Tax Credit shakes out.

  WHO DO YOU KNOW NOW that is challenged with their mortgage payments OR needs to sell for less than their home is worth?? WE CAN HELP!! 

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   11.02.2009