What the St. Louis housing market looks like so far in 2021
ST. LOUIS – “I have these balloons that I kind of want to blow up and that I like to have all over the house just to make a little party out of them,” said Victoria Smidt, a first-time home buyer. But she says she has no hope.
“Right now the market is ridiculous,” she said.
When it comes to real estate there is the “seller’s market”, the “buyer’s market” and the 2021 market that local agents say are unlike anything they have ever seen.
“There is very, very limited inventory,” said realtor Sarah Bernard. “We’ve never seen it like this in St. Louis.”
The easiest way to explain it? People don’t sell their houses.
That means people who want to buy have fewer homes to choose from and are more competitive. This can be good news for sellers who may receive offers to buy in cash without inspection or going over the asking price.
“With a shortage of homes and still lots of buyers, it’s a bit of a feeding frenzy right now,” said Bernard.
But that also excludes a lot of people, especially first-time owners.
“It’s very disheartening because they worked very hard to get these upfront and closing costs. But they are unable to pay the 10, 15, 20, and in some cases thirty thousand dollars above the price in this market, ”said broker Gail Brown. She worries about justice – in real estate and communities.
“There were already differences in the market and the inability of a certain segment of the population to become wealthy. But if they are unable to capitalize on the appreciation that exists in this market, they will continue to lag behind and continue to lose opportunities, ”she said. “I am very concerned about this in this market.”
It’s not all good news for sellers, either. Many are unable to find a place to go once they sell.
“People make Airbnb hotels with long-term residency, so there are a couple of different options so sellers need to be prepared that they may not have their next home right away,” said Bernard.
This is also why many people choose not to sell now – hence the cycle continues.
“One of the great things about St. Louis and the region that people have always spoken to is our affordable housing market,” said Brown. “Well, if we keep pushing the market and market values, that won’t be a distinction that we’ll be known for.”
Brokers advise anyone considering a realistic sale at price and be willing to consider creative offers.
Buyers should have finances in order, consider homes well below what they could pay for, be patient, and then be ready to act quickly.
“You may only have one chance to see this house before you write this offer. So you just have to be ready,” said Bernard.
After several lost offers, Smidt wrote a letter to the seller of her dream home.
“I was very lucky with the fact that the owner is associated with [it],” She said.
Now she’s under contract – but she still won’t blow up the balloons.
“I really hope everything works out,” she said. “But you can’t become too attached to yourself until the deal is closed and you are actually closed.”