ST. LOUIS – The housing market in St. Louis is experiencing a slingshot effect.
Though the market paused during the COVID shutdown it has now rebounded at a record level.
Real estate expert Claire Gardner Keller Williams Realty Chesterfield, says buyers are hitting the market in droves. This is due to a historic low interest rate drop during the shutdown. Now a Buyer can afford to spend more on a house. For example, when interest rates were 5% a home buyer making about $50,000 a year, with a normal debt-to-income level, could afford a $160,000 home. Now, with interest rates hitting 2.5% the same Buyer can purchase a home in the $200-$210,000 range.
Claire Gardner says, “We have been averaging about 100 new listings a day in the St. Louis, St. Charles, and Jefferson County market.”
Sellers are still afraid to list, but need not be concerned, as there are options. Sellers are able to spend less on updating their houses prior to putting them on the market. They are also getting over value. So that same Seller can now purchase more or move to a different area.
Gardner says she is seeing numerous contracts per listing, anywhere from 3 to 25 contracts coming in on a listing once they hit the market. Two of her last sales were under contract before hitting the market because she matched the buyer and seller who is a local rehabber.
Buyers are also offering over the asking price. Gardner says inventory is still low so supply and demand is controlling the market. Most areas are experiencing what’s known as a Seller’s Market.
Sellers who understand this are now putting their homes up for sale because they feel they can capitalize on their investment.
You may reach Claire Gardner at ClaireGardner@KW.com or at 636-534-8221.