You’ve seen the headlines about doom and gloom in the real estate market. You may wonder if 2023 won’t be the right time to become a homeowner or sell a property.
Looking beyond the headlines shows a more positive picture of St. Louis and St. Charles real estate, though. You may have more opportunities than you think.
Learn more about trends in the St. Louis housing market and what you can expect next year.
Expect a Normalizing Housing Market
St. Louis real estate is starting to normalize. After a record-breaking seller’s market, housing values are starting to soften. Rising interest rates and consumer prices are putting pressure on home buyers’ budgets.
Home prices will likely continue to rise in 2023. The rate of increase will be much lower than it has been recently, though.
Single-family housing prices in the St. Louis real estate market were up 10.5% year-over-year in August but only 2.7% in September.
This correction may seem like a negative for St. Louis real estate. It’s important for affordability, though. The housing market was pricing many buyers out.
A more balanced real estate market benefits buyers, sellers, and the St. Louis community.
Percent of List Price Received
The market for St. Louis real estate is slowing, but sellers are still getting more than the list price. The percentage of the list price received for residential properties was almost 101% in September. This is down 0.8% compared to last year.
However, sellers are still getting at least their home’s listed value.
Days on the Market
The number of days a property stays on the market before a sale was higher in September. Residential properties were listed for an average of 28 days.
This number is higher compared to earlier in the year and to September 2021. Historically, though, 28 days is still much lower than average. Buyers will need to move relatively quickly even with a gradual increase in the time on the market.
Months Supply of Inventory
Another statistic to watch is the monthly supply of inventory. It measures how long the current inventory of homes on the market would take to sell given the current pace of sales. The monthly supply of inventory in St. Louis was up slightly in September to 1.7.
The supply of homes for sale is low enough to keep pushing prices upward. It takes at least a six months supply to keep price increases at a more moderate pace.
Seasonal Trends in the Housing Market
Quarterly and monthly indicators like home prices and days on the market suggest a slowing housing market going into 2023. The housing market is seasonal, though.
A cool down in the fall and winter is normal. The slowest months for real estate sales are usually October through February. Some experts are already predicting home sales will pick up again in the spring of 2023.
The Role of a Real Estate Professional
For potential home buyers and sellers, the housing market is getting more complicated. An experienced realtor has an important role to play. The Sarah Bernard Realty Team has the expertise to help you navigate the market.
We help buyers make competitive offers that close the deal without overpaying. We help sellers get the best possible price for their home sale. You can trust our experience in St. Louis and St. Charles real estate.
Contact the Sarah Bernard Realty Team today to discuss how we can help you meet your real estate goals. We look forward to meeting you!