St. Louis real estate market shows no signs of slowing, buyers face disappointment as sellers cash in

The real estate market in St. Louis shows few signs of slowing, as an influx of buyers drives up demand and the area experiences a shortage of inventory.
Published: Mar. 16, 2023 at 5:51 PM CDT
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ST. LOUIS, Mo. (KMOV) - The real estate market in St. Louis shows few signs of slowing, as an influx of buyers drives up demand and the area experiences a shortage of inventory.

In 2022, the median price of a home in St. Louis was $211,000. This year, that number rose to $225,000, an increase of more than 6%.

“The interest rate going up did not slow our buyers down because they understand, our little joke in real estate is you marry the house but you date the rate,” said Bryan Rankins, a realtor with Re/Max Kelly Bennett Group. “Because those rates can change, you can do different things on them.”

With interest rates pricing fewer people out of the market that expected, Rankins said soaring rent prices is driving an influx of new buyers into the market.

“They’re realizing what they spend a month in rent is equivalent or less than a house payment,” he said. “We’re also seeing a lot of people that are late 20s early 30s that have gotten out of college and have their good job, but really haven’t decided to settle down on a house yet.”

The winter months are often the slow time of year for real estate agents like Rankins, with fewer people selling their homes and buyers waiting until the spring. However, this winter was different, Rankins said.

“This is busiest winter we’ve ever had,” he said. “We haven’t seen anything like it.”

With many homes selling over listing price, Rankins said both buyers and their agents are suffering from “buyers fatigue.” He recommends getting underwriting with a lender complete before making an offer and to get creative when trying to appeal to a seller.

“Stay in the game because like I say, this is not just a home, this is a major massive investment that is going to pay off for you if you make the right decisions,” he said.

According to a new NerdWallet study, 28 million Americans plan to buy a house this year. However, the study notes that number is likely unrealistic, as only around 5 million homes are purchased every year on average.