The residential real estate market is a dynamic landscape that continually evolves based on various factors like economic conditions, demographics, and consumer preferences. It’s crucial to keep a pulse on the latest trends and developments to make informed decisions. In this residential market update, we will explore the current state of affairs, highlight emerging trends, and provide valuable insights for both buyers and sellers.
1. Market Overview
The residential real estate market has experienced significant increases over the past few years. Prices appeared to begin declining in the broader St Louis Metro area over the fall & winter months of 2022. Mid way through January 2023 prices began to see a stong spike and bidding wars for housing resumed in a big way. With a steady economic recovery, limited supply, and increasing consumer confidence, the market is regaining momentum. While there are regional variations, the overall outlook remains positive even with rising interest rates.
2. Housing Supply and Demand
In 2023, the demand for residential properties continues to outstrip supply in many regions. The ongoing housing shortage is primarily due to a lack of new construction, slow-paced housing development and rising construction costs. In addition home woners with low mortgage rates are reluctant to give up thier low payments. As a result, property prices have remained relatively high.
3. Shift in Homebuyer Preferences
Millennials and Gen Z continue to dominate the homebuyer market, shaping the demand for certain features. These tech-savvy generations prioritize walkability, access to public transportation, and proximity to urban amenities. As remote work becomes more common, home offices and flexible spaces are increasingly essential features for buyers.
4. Impact of Work-From-Home Culture
The work-from-home culture, accelerated by the pandemic, has had a profound impact on the residential market. Many buyers are seeking properties with dedicated home office spaces and outdoor areas that can double as a workspace. Additionally, some buyers are exploring suburban and rural areas, leading to an increased demand in these regions.
The Webster Groves Market
The total number of homes sold has declined from 242 in the previous 7-12 months to 141 over the last 3 months. The absorption rate has increased from around 40 per month to 47 per month. Total number of active listings is falling sharply from 259 to 136. Months of housing supply has also fallen from a balanced 6 months of supply to under 3 months of supply.
The median sale price has risen from $336,500 to $395,000 over the last 12 months. This rise suggests a 1.4% monthly increase in housing prices. The days on market has remained relatively stable around 5 days on market. The typical historic days on market would be around 30 days. The median list price for homes in the Webster Groves market has risen steadily up to $349,450 from $319,900. The sale to list price ratio remains relatively flat at 105%.
The data suggests the Webster Groves housing market is very strong. Rising interest rates do not appear to be slowing the prices of housing in any way. As a seller, you can expect to sell your home in less than a week, receive multiple offers and get well over asking price for your home. If you are looking to purchase a home in Webster Groves, you may be in for a tough battle. Be prepared to make your strongest offer and limit your contingencies.