The U.S. housing market since the start of the COVID-19 pandemic has been anything but ordinary. This will remain to be the case as we head deeper into spring, and the St. Louis region is no exception.
Spring is often the busiest time of year when families are more likely to place their houses on the market. But buyers are struggling to find the right house for them when they need it — and that meets their ideal budget — for a myriad of reasons.
What Are Some Trends in the Spring Housing Market?
Low Home Inventory
While low inventory in St. Louis is nothing new, this trend has increased since the start of the pandemic. It is, without a doubt, a seller’s market.
According to St. Louis REALTORS, there were 1.1 months of home supply in March 2021 (meaning it would take 1.1 months to sell all homes on the market). This is down 50% from March 2020. Last month, there were 2,002 homes for sale which was down 46.2% from the previous year.
Low Time on Market
As a direct result of the low home inventory, homes that are on the market aren’t on there for long. Homes are on the market for an average of 34 days, compared with 48 days in 2020. There were 1,890 pending sales last month, which is up 11.4% from the previous March.
Rising Home Prices
Another aspect of the seller’s market we’re seeing now is that home prices have jumped. The median sales price in March was $247,500, which had increased 13.5% over March 2020.
It’s not uncommon for buyers to lose out on multiple offers or for a house to sell for $30,000 or more over the list price.
What Can Buyers Do in Today’s Housing Market?
While trends aren’t likely to last forever, it can be discouraging to be a buyer at this point in time. Working with a great realtor can help you navigate the market and find the right options for you.
Here are some additional tips:
- Make your best offer as quickly as possible.
- Get ready to go higher than your initial budget.
- Offer cash, if you can.
- Consider waiving financial contingencies.
And when you do secure the best home for you, remember to contact Investors Title Company. We’ll help you navigate the closing and title process to ensure it’s as smooth as possible.
Are you ready to buy or sell a home? Contact a residential title specialist at Investors Title today.