I have studied all the metro home sale statistics from last year, and am ready to give you what you crave: my annual review.

The market in our metro performed better than it felt. The average sale price went up 5.9% to $344,250 according to statistics I pulled last week from our Multiple Listing Service (MLS). This includes single families, villas and condos. The days-on-market went up slightly as did months-of-inventory, both signaling a slowdown in buyer demand, mainly attributable to higher prices and mortgage rates. The number of homes selling was down only 1% from 2023, but is down 27% from 3 years ago. As inventory builds, that indicates decreasing buyer demand, no longer a restricted supply. If it continues, that should lead to less price appreciation, which buyers have been clamoring for, and contribute to lower inflation rates. The sale price is still averaging a touch higher than list price, a 100.4% ratio, but less over list price from the last 2 years of 101-102%.

The spring market was strong as in previous years, and seemed to tail off again in the fall. However, with the sharp annual price increase of 6%, I must qualify the buyer demand in 2024, and now feel the expectation for updated homes is higher now with the one-two punch to buyers with increasing prices and sticky mortgage rates that were supposed to fall and really didn't. After paying the asking price or higher, and a 7% loan rate, buyers do not have much appetite to do work to the home. The demand for homes that need work has dropped substantially, although there is still a wide network of investors willing to snap those up, but at a lower price than the past, as the cost of renovations, risks and liabilities have all jumped up. What used to be a typical swing of $80,000 to 120,000 from buy to sell prices for investors is now $130,000 to 200,000 and more. Seller tip for 2025: Nice homes sell all year, but homes in need of updating or repair sell best in the spring.

The majority of my sales were in West County and Central Corridor - in Manchester, Chesterfield, Ellisville and Kirkwood; plus Fenton, Affton, St Peters and South City. My clients were accountants, small business owners, health care professionals, an engineer, an attorney, a non-profit CEO, college students (young entrepreneurs who bought a 4 family), a stylist, and retirees. I had 2 relocations, one to Wisconsin and one to Florida. I had my highest average sale price that climbed over $400,000 and closed $4,776,700 in sales volume. All of my listings sold, and all of my sales closed, resulting in more happy clients. 1/3 of my listings attracted competing offers, and 2/3 of them sold at or over list price.

Personnel update: My Office Administrator, Barb Stanek left last year as she opened a salon call Roosters Men's Grooming in Crestwood at the old mall, give it a try! Amy Nahorski switched to a different brokerage, so it is back to just me agent-wise. And I hired Kim Suddeth as Operations Manager for Home Central and for real estate sales.

For the 7 regional submarket breakdown: West County took honors this year for price appreciation at 8.1%. I noted last year their supply v. demand indicators pointed to a very high demand, and that came about in 2024. I find comparing the different areas of our metro to be fascinating, but if you do not like statistics, skip to the end. If you do, dig in!

To continue with West County, their other numbers on average Days-on-Market (DOM), sale price-to-list price ratio (SP/LP) and Months of Inventory (MOI) were all strong compared to the other markets. DOM stayed at 25 from 2023, which was 2nd best of the 7 submarkets, SP/LP dropped a bit to 101.4%, which is a hair under the best, and MOI rose to 1.36, but still 2nd best. These figures indicate another good year ahead. This is the first year that West Co passed the half million mark to average price of $531,000, the 2nd highest in the metro.

Jefferson County had the 2nd highest appreciation rate at 6.4% to $286,500, the middle price of the 7 markets. But they were 3rd highest in DOM, the middle SP/LP, and 2nd highest in MOI, indicating a softer market there. Keep in mind that although their average price is 27% lower than St Charles with $393,500, it is because there are many more lower priced homes in Jeff Co, not that the same house is that much cheaper.

South County had the 3rd highest appreciation rate at 5.9% with $317,000. But they continue to have the lowest MOI of the 7 markets at 1.17, dropped their DOM to 21, also the lowest, and had the highest SP/LP, making this 2 years in a row of sweeping the board on these 3 stats! As I have commented before, I think South County needs more self respect, and realize they are underpricing themselves!

St Charles clocks in with 5.8% price appreciation, a hair below metro average. After a number of higher years, they have slipped the last 2 years to middle ground. In addition, their MOI has jumped higher than average to 1.99; their SP/LP dropped to 5th, although their DOM is stable at 3rd best. What happened to St Chuck the last 2 years? Perhaps with moderating sales numbers, more buyers are choosing to be closer in. Or the work from home is not allowed as much as it was the last few years. Or the homes and infrastructure are not as new as they used to be. Or perhaps there is politics at play (although that could be said about all of our areas!). I do know that St Charles is still a coveted area to live and work, and am not concerned.

The Central Corridor is next at 5.5% appreciation. They have been steady and predictable in their numbers, retaining the top price for the region at $610,300. They are in the middle on DOM and MOI, but nearly the highest SP/LP, which is enviable for the market with the highest prices. This central location maintains its appeal and high demand, and dropped its DOM the most of all 7 districts.

At 5.4% appreciation is North County, a welcome bounce back from 2023 when it experienced a price decrease, a rare phenomenon the last 10 years. I guessed a year ago that could signal a buying opportunity, and many people agreed and put it back to a healthy price increase. It is not out of the woods yet, with the 2nd highest DOM of 35 and one of 2 markets not averaging over list price, the SP/LP at 98.8. With the lowest regional average price at $154,000, this market should continue to attract attention.

That brings us to the city market. As I had to break this down and explain last year, I feel the need to again. On paper, the price appreciation shows 3.7%. I split out North City, which increased 10% in number of sales to 425, and went up 4.6% in price; vs. the rest of the city, which decreased 6% in number of sales to 2934, and went up 4.9% in price. I equate that to a 4.8% price appreciation rate for the whole city, as the unit change/ price differences made the 3.7% unreliable. While still below the metro average, and the lowest of the 7 submarkets, 4.8% appreciation is pretty healthy. However, the DOM moved up to 40, the highest of the metro, the MOI almost doubled to 3.85, by far the worst, and the SP/LP was the lowest at 96.3%, although that number is suspect as the South Side figure was extremely off and I had to throw it out. Out of the 5 MLS city districts, South side has the lowest DOM and MOI, indicating the hottest area of the 5. So their SP/LP would likely be the highest, and I had to toss out that corrupted number and use the rest. Incidentally, Downtown had the highest DOM and MOI, indicating the slowest area of the 5 - even slower than North City. With more activity and interest in North City, that is an area ripe for serious investment and renovations.

There you have it, another St Louis real estate year in the books! Now is the time to contact me if you will be selling this year to get things in order. To move or improve in 2025, contact Gary to sell or buy (HRE), or for ongoing home and design management services (HHC) in your current or new home.

May you have a prosperous 2025!