Saint Louis Real Estate Market Watch

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 more signs of inventory shrinking with fewer active listings and our pending ratio dropping to 13.54 percent.  This same week in August 2007 we saw 11.5 percent more active listings with 16.7 percent more homes accepting contracts. The pending ratio the week of August 25^th, 2007 was 14.16 percent.  Comparing average list pricing and average selling prices shows very little up or down movement from one year ago in most price ranges. Our averages show a 1 percent increase in average list prices and a 1.5 percent drop in sales prices from one year ago. 

This year, our six month average of number of sold homes (closed transactions) is on an uphill climb.  Here’s further evidence that our local market here is stable with homes selling at an average of 95.2 percent of list price. 

You can check this out for yourself by looking at the August 25^th, 2007 Market Watch report in the archives. We have also added a line to our current Market Watch showing the total averages from one year ago this week.

The message continues to be clear to us; now is a great time to buy, especially with interest rates still historically low and new FHA financing programs.  Since the price ranges that move our St. Louis market are in the $275,000 range and down, FHA could be the loan program of choice for a majority of home buyers in St. Louis, with FHA limits set up to $281,000 now. 

ARE YOU thinking of buying or selling a home?  Contact Doug Aegerter or Art Wagner for more information and a FREE Comparative Market Analysis (CMA) of your home or your neighborhood.

St. Louis Real Estate St. Louis County Market Watch August 23rd, 2008

St. Louis Real Estate Jefferson  County Market Watch August 23rd, 2008

St. Louis Real Estate St. Charles County Market Watch August 16th, 2008

St. Louis Real Estate Benchmark Report July 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 (Closed transactions last 6 months)
Expired (Last 6 months)
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

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Saint Louis Real Estate Market Watch

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 our summer of 2008 trends as we see fewer homes coming on the market again. However, we are seeing a few more homes selling this week as our pending ratio inches up to 14.18 percent.  Our list prices and sales prices are holding steady, as well, evidenced by the List to Sales Price average of 95.4%. 

 In some price ranges, that average may be a bit higher, or lower, but a 95.4% average IS something to shout about, especially when you consider that all transactions in the St. Louis County area make up that average INCLUDING Foreclosures and Short Sales.  Other parts of the country, such as Las Vegas, parts of Florida and areas in California where almost 70% of their business is foreclosures and short sales, would have a tough time matching our local statistics.  Our local statistics show that foreclosures and short sales make up only about 8–10 percent of our total transaction volume. 

Interest rates are still at historically low levels, inventory is below 2005 levels and in the first quarter of 2008 we have seen pricing / appreciation increases of about 1.7 percent.  We should be thankful we live in St. Louis.  You don’t hear much, if at all, from the news media about these statistics; I guess they’re not doom and gloom enough to report.

BUYERS AND SELLERS– Go to RISMedia.com and check out the article from John Benson, who compiled information from a White Paper he authored entitled, “60% of the U.S. Can Stop Worrying about Housing Market”.  He claims that a lot of the negative thinking and talk of recession is more of a “mental recession” than anything.

SELLERS– While you’re visiting RISMedia.com, check out this article, by Kathleen Lynn, which gives one frustrated seller’s insight into his experiences with his home selling process.  “8 Reasons Your Home Hasn’t Sold Yet-Advice for Frustrated Clients”, is the title of the article.  It mimicks what we have been telling our clients and prospective clients during our discussions about their home selling process.

ARE YOU thinking of buying or selling a home?  Contact Doug Aegerter or Art Wagner for more information and a FREE Comparative Market Analysis (CMA) of your home or your neighborhood.

St. Louis Real Estate St. Louis CountyMarket Watch August 16th, 2008

St. Louis Real Estate Jefferson  County Market Watch August 9th, 2008

St. Louis Real Estate St. Charles County Market Watch August 16th, 2008

St. Louis Real Estate Benchmark Report July 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

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A full building inspection for a house involved in a Real Estate transaction does not necessarily mean that a termite inspection is included. Inspectors must have a special license in the state of Missouri to inspect for termites. It is true that inspectors will call out wood structural components that have been damaged by termites, whether the damage is significant or just minor. However, observing and reporting termite presence will not generally occur if a full termite inspection is not included with the building inspection. Keep mind that when a buyer orders and schedules an inspection for a house they bought, their inspector will deliver them a report describing the conditions of the major structural and mechanical components of the house only. (more…)

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Saint Louis Real Estate Market Watch

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 a bit of an increase in active listings.  We are also seeing fewer homes accepting contracts in the last 30–40 days (pending) and our pending ratio has dropped below 14 percent.  However, the number of homes sold (contracts closed) in the last six months is still increasing, with fewer expired listings.  We are still behind last year’s six month figures of homes sold by 1387. 

Our inventory is getting close to the top end of the transitional zone ( 5–7 month), which means we are still trending towards a buyer’s market somewhat. 

 Thinking of buying or selling a home? Contact Us for a FREE Comparative Market Analysis and additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch August 9th, 2008

St. Louis Real Estate Jefferson  County Market Watch August 9th, 2008

St. Louis Real Estate St. Charles County Market Watch August 2nd, 2008

St. Louis Real Estate Benchmark Report July 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

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Clutter…
Too Much Furniture…
Personalized Wall Colors and Patterns…
Those Collectibles…

In this market, anything and everything needs to be done to give your house the edge, whether you are the Seller or the Listing Agent.

There is so much inventory out there, Buyers need not rush into anything until they find that special house….the one where they can visualize themselves living there, with their things.  The house that emits those warm fuzzies!  The house that makes them feel like they are at home!

How does your house become that home that they love?  Make sure it is staged! Whether it is a Staging Consultation Service for ideas and solutions, or Occupied Staging Services where the staging is completed for you with your belongings and budget, or Vacant Home Staging Services, with added furniture and accessories to define and accentuate….Houses that are Staged sell faster than Non-Staged houses, that is a fact!

Staging puts your house in its best possible apperance!  The MLS pictures will look great, attracting Buyers and their Realtors to make that appointment for a personal visit. 

Then when they get there…WOW!

Our staging team, We Stage St. Louis, has helped to sell over $7.6 Million in Homes within the Greater St. Louis Metropolitan Area, since January, 2007.  Our Staged properties sell in an average of 40 days, and we are helping to get our Sellers 98.1% of the LP at closing.  90% of our Staged properties have SOLD! 

Staging make a difference, especially in a more challenging housing market! 

Reduce your nice clutter and your not-so-nice clutter, neutralize your walls and other areas, and accentuate your house’s special features through staging…..Get your house Sold!

Accredited Staging Professionals (ASP Stagers) are available to help you get your house sold with ideas and solutions based on professional guidelines that have proven to be successful.

If you are planning to place your house on the market in the near future or if your house has been on the market for awhile, decide to have your house staged!  It is never too early or too late!

Make the decision TO STAGE….

Sue can be contacted at suerector@stlouisrealestatevoice.com

Tags: St.+Louis+Real+Estate, Home+Staging, ASP+Stagers

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Credit for First-Time Home-buyers

The single largest provision in the Housing Act is a measure allowing taxpayers buying their first home to take a tax credit of up to $7,500 of the purchase price. Qualified home-buyers can subtract the credit amount from their federal income tax when they buy a home and even get a refund if the credit exceeds their tax. However, they are then required to pay the credit back over fifteen years. The result is that the credit resembles an interest-free loan that must be repaid to the government.

Here are the details of the new credit:

• The home must be located in the United States and must be the taxpayer’s principal residence. The taxpayer (and the taxpayer’s spouse if married) must not have owned another principal residence in the United States in the three-year period before purchasing the new home. Accordingly, the home does not literally have to be the taxpayer’s first home ever purchased in the United States.
• The home must be purchased between April 9, 2008 and June 30, 2009. Purchases from certain related persons and acquisitions by gift or inheritance do not qualify. A home constructed by the taxpayer does qualify if the taxpayer moves in between April 9, 2008 and June 30, 2009.
• There is also a special rule that allows taxpayers who purchase a qualifying principal residence in the first six months of 2009 to treat the purchase as if made on December 31, 2008. This allows the credit to be claimed on the taxpayer’s 2008 taxes rather than waiting to claim it on the taxpayer’s 2009 taxes.
• The credit is equal to ten percent of the price paid for the home, up to a maximum of $7,500. The $7,500 maximum credit applies both to individuals and married couples filing a joint return. A married individual filing separately can only claim a maximum credit of $3,750.
• The credit is phased out for individual taxpayers with modified adjusted gross income (AGI) between $75,000 and $95,000 ($150,000 and $170,000 for joint filers) for the year of purchase. Taxpayers with modified AGI over $95,000 ($170,000 for joint filers) can’t claim the credit at all.
• The credit is refundable, which means that households with incomes too low to owe any income tax can still benefit as the excess credit available after applying to any income taxes will be refunded to the taxpayer.
• In the second year after purchase (note that the payback doesn’t immediately start in the subsequent tax year), taxpayers who took the credit must start paying back the credit in equal interest-free installments over fifteen years. For example, suppose a first-time home-buyer purchases a home for $100,000 in December 2008 and claims the maximum credit of $7,500 on his 2008 tax return. He would then be required to pay back $500 (one-fifteenth of the credit) on his tax return for 2010 and for each subsequent return for the following fourteen years, finishing in 2024.
• If the taxpayer sells the home (or the home ceases to be the principal residence of the taxpayer or the taxpayer’s spouse) before the complete repayment of the credit, any remaining credit is due on the tax return for the year in which the home is sold (or ceases to be the principal residence). If the home was sold at a loss to an unrelated person, repayment of the remaining credit is forgiven to the extent of the loss.
• No credit is allowed if certain conditions exist: the taxpayer was ever entitled to a District of Columbia homebuyer credit, the home purchase was financed through tax-exempt mortgage revenue bonds, the taxpayer is a nonresident alien, or the taxpayer disposes of the residence (or it ceases to be a principal residence) in the same year as it was purchased.

For a chart of the tax credit information, click here 

 For Questions or Comments, please contact Chris Scheer chrisscheer@stlouisrealestatevoice.com  

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On July 30, 2008, President Bush signed into law the “Housing Assistance Tax Act of 2008” (the Housing Act).  It includes a $15.1 billion package of housing tax incentives.

Part One

Property Tax Deductions for Non-Itemizers

The Housing Act created a new, temporary property tax deduction for non-itemizers (i.e., for taxpayers who claim the standard deduction rather than itemizing their deductions).

Highlights include:

• The provision creates a new standard deduction for state and local real property taxes paid by non-itemizers. Since most homeowners who are paying on a mortgage have enough deductions (e.g., mortgage interest and property taxes) to justify itemizing them on their return, this new provision chiefly benefits homeowners who have paid off their homes.

• The deduction is currently only available for tax years that begin in 2008.

• The amount of deduction will be as much as $500 for single filers and $1,000 for joint filers. Since this is a deduction and not a credit (i.e., a dollar-for-dollar reduction in tax liability) the actual tax benefit will not be all that substantial.  For example, it only proves a maximum of $100 to a couple in the ten percent tax bracket and $150 to a couple in the fifteen percent bracket (and only $50 and $75, respectively, to singles in those brackets).  Granted, in this economy every little bit helps.

Part Two

Credit for First-Time Homebuyers (to be continued)

 Chris Scheer can be reached at chrisscheer@stlouisrealestatevoice.com

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Here we go!

It is actually going to happen! 
The new rates for the 2008B are as follows:

CAL for Government loans 6.9%

NON CAL for Government loans 6.45%

CAL for Conventional loans 7.3%

NON CAL for Conventional loans 6.85%

The window for reservations will open at 8 am on Monday August 4th.  As soon as you have a confirmed reservation you may close loans.  All loans in this bond issue will be sold to the new master servicer US Bank.  Training with the master servicer will start on Tuesday August 5th in Columbia and on Wednesday August 6th in St. Louis.  I will go over the changes to the program in depth at the training but I will state the changes briefly in this email.

Rates
As you can see we will have 4 rates instead of 2 due to the conventional market.  Only Fannie Mae’s My Community Mortgage or Freddie Macs Home Possible programs can be used with this bond issue. There will be no charge of 1.25% for LLP and adverse market fee in this issue only.  However, there will have to be a $175 servicing fee charged to the borrower for the all CAL loans.

Down payment Assistance
As you can see I have changed the acronym from CAP to CAL.  This stands for Cash Assistance Loan and will help differentiate between the two programs.  The assistance will still be 3% of the loan amount but it will be in the form of a soft second mortgage that will be forgiven over a 5 year period.  The loan will actually diminish 1/60 per month over the 5 year period.  The borrower will then be given a 1099 every year for the amount that was forgiven that year and will have to claim that as income on the federal tax return.  If the borrower sells or refinances the loan in the first five years the remainder of the amount will have to be paid back. We have been discussing the just-enacted housing stimulus bill with FHA staff and they told us today that the just-enacted housing bill does not impose a 100% CLTV cap on FHA loans.  It imposes a 100% LTV cap on the FHA-insured first mortgage and requires the FHA mortgage insurance premium to be counted toward the LTV ratio for purposes of the 100% cap. HUD will continue to allow second liens from state housing agencies that result in CLTVs that exceed 100%.

Chris Scheer can be reached at chrisscheer@stlouisrealestatevocie.com

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Saint Louis Real Estate Market Watch

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 Saint Louis Real Estate Market this week is in our typical “summer slow-down” with quite a few less active listings, less homes accepting contracts and a small increase in expired listings.  Our pending ratio has dropped to 14.44% from 15.02% from last week.

This “summer slow-down” is typical in August, with many people taking last minute vacations and getting children ready for school to start in a couple weeks. 

We’ve talked to many sellers that have been in the marketplace for the last several months, or more, and are just “taking a break” from the selling process.  These sellers have had their share of challenges this summer and are frustrated with the lack of results. 

Buyers should take note, as with inventory shrinking and fewer homes to see, we expect to see pricing to continue holding steady.  Educated sellers in the marketplace are aware of this and therefore less willing to negitiate major price reductions.  This is still a great time to buy, as there are still motivated sellers in the marketplace and interest rates dropped slightly again this past week.

Buyers trying to sort out their financing and mortgage options still have a number of great choices.  With conventional lending tightening considerably, buyers should consider FHA, VA, USDA, or Fannie Mae programs. Some of these programs are less restrictive with regards to down payments and credit scores. 

Jason Kotar from Kotar & Associates wrote a great article for RISMedia July 31^st, comparing these different loan programs.  Read the article HERE.  These programs might be the answer for some challenged buyers or the first-time homebuyer.

 Thinking of buying or selling a home? Contact Us for a FREE Comparative Market Analysis and additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch August 2nd, 2008

St. Louis Real Estate Jefferson  County Market Watch July 26th, 2008

St. Louis Real Estate St. Charles County Market Watch August 2nd, 2008

St. Louis Real Estate Benchmark Report July 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

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Saint Louis Real Estate Market Watch

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 Saint Louis Real Estate Market this week is showing less active listings than the previous couple of weeks. We are still seeing homes selling, as our pending ratio has remained consistent.  We are showing an increase in the pending ratio this week, however this is only due to less acive listings and home sales remaining at previous levels.  Our average list prices and sales prices are also holding steady.

As we go through the summer months, we continue to talk with sellers and buyers who believe that our local market is still in terrible shape, with prices dropping and too much inventory in the market. Well, we’re here to tell you, that’s not the real scenario here in the St. Louis Metro Area.

Want PROOF?  Check out the latest report released by the Office of Federal Housing Enterprises Oversight (OFHEO) at www.OFHEO.gov. Their statistics show that in Missouri, we have seen housing prices appreciate during the first quarter of 2008 and housing prices have actually RISEN 1.7% during the first quarter. Their statistics are based on actual home sales numbers and re-finance contracts.  Read the complete 82 page report if you’re bored, but the charts, graphs and maps included tell the story.

Our own Multiple Listing Service data also supports this, as you view our Market Watch Reports each week.  For the past 12–14 months, we have not experienced much movement either up or down in home prices in our local market. You can view the Market Watch Report from July 28^th, 2007 HERE. The only price range that has had significant movement is the luxury home market in the 800,000 plus range.

Inventory in this market is also far behind inventory numbers from 2007. With 5734 active listings as of today, compare that with 6321 active listings same time last year. A difference of almost 500, which is mostly in the price ranges that move our market at $300,000 and down.

One of our biggest challenges in this market now is helping buyers and sellers understand the REAL state of our local market.  Sellers can feel more confident as home prices are holding steady.  Buyers will do well now, as there is good value for the dollar in the marketplace and interest rates have dropped again. Buyers looking for their “bargain of a lifetime” may be out of luck, as our market is still showing average list to sales price ratios in a 2 percent to 5 percent range. 

 Thinking of buying or selling a home? Contact Us for a FREE Comparative Market Analysis and additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch July 26th, 2008

St. Louis Real Estate Jefferson  County Market Watch July 26th, 2008

St. Louis Real Estate St. Charles County Market Watch July 19th, 2008

St. Louis Real Estate Benchmark Report June 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

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