Rates for home buyers have dropped recently on 30 year fixed loans to 6.5% - 6.75%, a welcome break for those seeing 7s and even 8s the last 2 years. For 15 and 20 year fixed rate loans, those rates will be even lower, which can be found in the 5s, as well as adjustables or buy-downs.

With fall being a slower purchasing time with less buyer competition, this scenario makes this fall a smart time to buy! Why wait til the spring when more buyers will be slugging it out, especially if rates remain lower or drop even further? That is a recipe for spiking prices and having to offer more over list price. The last 12 months in St Louis has seen a drop (spring less drop, fall more) in sale price-over-list price; and an increase in buyer protections, such as inspection repairs and appraisals. For buyers, it makes much more sense to purchase a home now thru December, and be settled in your new home next spring working on landscaping while others are doing battle and getting frustrated. Contact me now to get started!

Two weeks ago, our local Realtor Association rolled out many new forms for us to be in compliance with the National Realtor settlement that was announced in the spring. Last week, the local MLS (Multiple Listing Service) removed all buyer agency commission offers from all current and sold properties. That carries over into all public websites that showed our buyer agency fee structures like Zillow and Realtor.com. Sellers may still offer them (and they were right up thru last week), but buyer agents now must research a bit to find out if and how much.

That ties into the other major change, is that buyer's brokers and agents must have a signed agreement with every buyer before showing them the first home, including the amount of compensation the buyer will pay, whether reimbursed by the seller or not, and not accept anything more. Our previous agreements were similar, but stated a minimum amount that we were to be paid by the seller, and if not, then the buyer agreed to pay it. Or buyers can still ask the seller to pay our fee as part of their offer, like any other closing cost. It was so customary (it was never required) for the seller to pay both Realtors an acceptable amount, that the buyer rarely paid our fee, although I have had on occasion a buyer that did, plus some brokers (my previous one) would charge an additional flat fee to their buyers, which I have never done since opening my own firm.

Seller's agents do not need to sign an agreement with an unrepresented buyer to show them their own listing, or to allow buyers thru an open house. If, however, the buyers want to enter into dual agency and the seller allows that, then the buyers would need to have an agreement signed with a potential pay structure.

I have gone thru several seminars and broker forums since April regarding these changes, and feel good about them. The lawsuit over damages is still out there thru spring of 2025, which I do not agree with, but am more than willing to help my past clients file a claim if they wish, as you will need your closing statement going back up to 10 years. Heck, I may file my own claim, as I sold several homes in that period (2 investment homes and 2 as trustee) and paid the buyer's broker. Ha!

As expected, the inventory is rising. Here is an update on local, existing home sales activity as of yesterday (Aug 7th):

• Manchester had 9 homes available and 16 under contract
• Ballwin had 27 homes available and 50 under contract
• Kirkwood had 40 homes available and 58 under contract
• St Peters had 38 homes available and 76 under contract
• Arnold had 28 homes available and 31 under contract
• Florissant had 65 homes available and 96 under contract

The ratios range from 1.1 to 2.0 pending sales for every 1 available. Adding the total of these 6 areas is 1.6 pendings to every 1 available. My last comparison of these areas in July was 1.9 to 1 (and 2.8 to 1 in June 2022) with the available home supply UP 15% from July. That shows, while still a seller's market, a rising inventory and less competition for buyers. St Peters is on top for best seller's market at a 2 to 1 ratio of pendings to available, and Arnold the best buyer's market at 1.1 to 1. Florissant has tightened up and is middle of the pack, likely due to the price affordability. These ratios are getting close to the most buyer-friendly stats I have seen in 5 years.

Enjoy what is left of your summer!