St. Louis Area Real Estate Market - May 2022
Here is a quick look at the local St. Louis area housing market, residential resale only. All data was gathered from the local St. Louis MLS for the month of May 2022. Note that the St. Louis area real estate market statistics are analyzed in two different graphics: St. Louis County and St. Charles County.
Let's start first with the St. Charles County market.
What does this mean for the St. Charles County Real Estate Market?
While we may be seeing changes in the real estate market happening in some parts of the country, the data shows that is still not the case in St. Charles County. All data points to a market that continues to favor home sellers, with home values rising and houses still selling quickly.
The median days on market dropped by one day, down to 4 days for May 2022. The months supply of inventory is also down slightly from 2021, and currently sits at 0.53 days. Closed home sales in St. Charles County increased to 442 for the month of May, which is up by 60 closed sales over last month. The median sales price of $325,000 in St. Charles County is up by another $5000 over last month. The data shows a fairly significant rise in home values for St. Charles County as a continued trend. You have not missed your chance to take advantage of the equity in your home! If you are considering selling a home in St. Charles County, you might be interested in finding out just how much your home is worth right now.
Now, let's take a look at the St. Louis County real estate market.
What does this mean for the St. Louis County Real Estate Market?
The St. Louis County real estate market tells a very similar story. The median days on market in the county, at just 5 days (where it also was last month), is at its lowest point in the last 3 years. The number of closed home sales in St. Louis County rose to 1143. Months supply of inventory dropped to 0.83, down from 0.91 in 2021. The median sales price rose yet again and is now up to $238,000. If you are considering selling a home in St. Louis County, it is a great time to cash in on your equity. A great first step would be to find out just how much your home is worth right now.
Knowing how to read and interpret this data is important. Here are explanations of the charts above:
- Number of Sales - This is the total number of home sales for the month.
- Median Sale Price - This is the median, or middle, sale price of all homes that sold in a particular month.
- Median Days on Market - Days on market is the amount of time it takes for a home to go under contract. The number reported is the median, or middle number, of all homes listed for the month.
- Months Supply of Inventory - This is a calculation that helps to quantify supply and demand in the housing market. This number tells you how long it would take to burn through the current inventory of homes for sale, if new homes stopped hitting the market completely. This number helps us to understand if the current market is favoring buyers or sellers.
The data still tells us that home values are increasing, days on market remain low, and the housing market is favoring sellers as it has for much of 2020 and all of 2021. Eventually, the market will correct itself to be more balanced. While we keep a close eye on data that may help predict when a shift is coming, we cannot confidently say when that change will happen in the midwest.
It is worth noting the rise in interest rates. A quick search of various banks and lenders will reveal the APR for 30-year fixed loans to be somewhere in the 5-6% range as of the time of this article. This is quite different from the rates of 2-3% we were seeing in 2021 and even at the start of 2022.
As interest rates continue to increase, and families feel the weight of inflation, it is not unreasonable to think that the general buyer pool may become smaller. This means less competition for those who are still looking and able to buy, and fewer potential buyers for home sellers. This is something that can certainly affect the real estate market in the area.
While there is some speculation involved in trying to understand the direction of the real estate market, the data still tells us that now is a fantastic time to sell your home if you are looking to do so. Our team is still finding that our sellers are often securing contracts in a very short amount of time, and for more than their asking sales price. With home values up significantly, homeowners are cashing in on their increased equity. We would be happy to provide you with a free market analysis, so you can decide if it might be the time to sell and make that move you have been dreaming of.
We know buying a home right now can seem tough. Despite the obstacles, our team is hard at work continuing to secure contracts for our buyers. Even though home inventory is low and buyer competition can be fierce, our unique strategies can help you secure a contract on a home that is perfect for you! We can also recommend local, trusted lenders who can help you obtain a pre-approval that will help make your offers more attractive to sellers. We welcome you to contact us to set up a free, no-obligation strategy session with one of our Buyer Specialists to talk about your goals and share how we can help you meet those goals.
Whether you are looking to sell, buy, build, or invest, our team of St. Louis area real estate experts have the knowledge and experience to handle all of your real estate needs with utmost care and attention. Reach out today for a free, no-obligation consultation with a member of our team to discuss how we can serve you in all things real estate!
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