Each month, new trends emerge related to the housing market. As the leading title company in St. Louis, we’ve boiled down the most important housing information and how it may impact you.
Let’s take a look at how the St. Louis housing market changed in June and what that means for property owners and buyers. You can also view the St. Louis Realtors June Housing Report in its entirety.
Steadied Federal Funds Rate
The Federal Reserve did not alter the target range for the federal funds rate, which was to be expected. The rate is currently set at 2.25-2.5 percent.
Potentially Slowing Economy
When it comes to the balance between buyer and seller interests, residential real estate markets nationwide are performing well, which can be attributed to an economic expansion that will beat the record for the longest in U.S. history this month.
While the economy is still doing well — thanks to factors like low unemployment and strong retail sales — trade tensions, decreased manufacturing and fewer business investments are causing some uncertainty. There are signs the economic expansion we’ve seen in the last few months may be slowing down.
Fewer New Home Listings
In June, new listings for residential homes decreased by 9.7 percent and townhouses/condos decreased by 2.6 percent compared to new listings in June 2018. Overall, the inventory of homes for sale decreased by 21.3 percent and 10.4 percent for single-family residential homes and townhouses/condos, respectively.
Fluctuating Home Sales
Pending sales for residential homes increased 1.6 percent. However, for townhouses/condos, pending sales dipped by 17.1 percent.
Higher Home Sale Prices
Median sale prices for residential homes in St. Louis increased to $236,750 — 11.7 percent more than in June 2018.
Longer Time on Market
Residential homes were on market for 39.3 percent more days in June 2019 than they were in June 2018 and 5.6 percent more for townhouses/condos.
Fastest-Selling Homes in Maryland Heights and Maplewood
In June, Maryland Heights and Maplewood became the fastest-selling cities in St. Louis, each with homes averaging 15 days to sell. Frontenac was the slowest-selling city in the St. Louis metro area last month.
Home Affordability Decreases
In the second quarter of 2019, home affordability in the City of St. Louis dropped from 98 on the affordability index to 73. In Jefferson County and Madison County, IL, homes became more affordable during the second quarter.
Investors Title Company wants to continue to educate and support our customers, whether you’re selling a home, buying a home, or have other housing market inquiries. Our extensive residential and commercial title services are accompanied by an expert team who is ready to help answer your questions and give you peace of mind.
Are you interested in partnering with the title professionals at Investors Title Company? Contact us today.