State of the market Jan 1, 2008 thru April 22, 2008
 

January 2008

ENTIRE ST. LOUIS MARKETPLACE

Click here to view "Price Analysis for the St. Louis Region" 

No offense, National Media. I know the bad housing market makes a great story, but hey St. Louisians, what you need to know about Real Estate is that ALL REAL ESTATE IS LOCAL.

What does that mean? It means you need to know about the real market in your area, not nationally. How is St. Louis doing? More importantly, how are the areas where you live specifically doing? Then you'll know if it's a bad market or a good market or a so-so market.

Either way, the market is the market. No matter how it is, if you have to buy or sell, this is the market you are dealing with. So you need to be educated so you can make intelligent decisions to win at this market whether you are a buyer or a seller.

So here we go. First of all, this report is about the entire St. Louis area from the arch to far north, far south and far west...here's how St. Louis looks.

The bad news, that's what you've been hearing. Overall, the number of home sales is down by about 13%. In 2006, 21,312 homes were sold in St. Louis. In 2007, thus far that number is 18,698. So we realtors are selling less houses...bummer for us. But more sellers are either electing to stay out of the market, or their homes aren't selling...you know that's a statistic I'll look up for another day. How many houses aren't selling. That would be interested...but I digress.

The other bad news, days on market are up 16%. In 2006 it took approximately 70 days on average for a house to sell in St. Louis, which by the way, is still a pretty good number...only 2.3 months to sell your home. Now in 2007, it's up 16% which sounds bad, but in reality...it's only another 11 days...which is still under 3 months! So be patient...your house will sell, just not as fast as in the good ole days  This is not a microwave housing market...pop it on the market, it's done. This is a slow roaster marketplace.  It will sell in due time and I'll tell you how in a minute.

Now, finally the good news!!! Guess what...you never hear this anywhere but the average sales prices are actually UP overall....by 4%!  That's great news for St. Louis. Maybe that's why Forbes said we are in the top 5 of all Seller's markets in the nation. Specifically, they said St. Louis was #5. Now, personally as a Realtor working this market day in and day out I don't buy that. This is not a Seller’s Market, it’s clearly a Buyer’s Market.  Or if we are one of the best markets in the nation, it is really bad out there. Because, if you're a seller, this still feels like a pretty stinky market to you and I feel your pain. This is no fun for anyone.

Ok, back to the good news. So prices are up...isn't that the bottom line what you really care about anyway? Prices on average in St. Louis were $190,873 in 2006 and now in 2007 they are averaging $198,644...so that's a 4% increase over 2006.

Mind you 2006 was a pretty hard year too, but forget about 2005. Forget about the good old days, forget about what your neighbor got for his house in 2005...those days are gone. Long gone! Accept it sellers! Denial doesn't help you and prolongs your pain in getting that all important contract on your home.

Ok, so you are a seller. How do you become one of the lucky ones who gets the contract?  How do you get part of that small bit of price appreciation over the 2006 marketplace?

Well, drum roll please....here it is:

The old adage is price, condition and location. Well, location is a fixed component. Whatever location you have, you have. That's what you have to deal with. So that leaves price and condition. Those are your factors to bring you success.  And you the Seller have control over both of those things.  So if your house isn’t selling, stop complaining about your realtor and take a look in the mirror…or at your house and your price.  Have you priced it competitively? Does it show the best in the marketplace?  If not, that’s why you are not selling.  The ones that do those 2 things, they ARE selling!

In this tough market, the houses that show the best and are priced the best win. It’s as simple as that. It’s still Real Estate 101.  If you choose a price that is higher than the market, you'll lose. When you look at your price band compared to others houses you are competing against, you need to be priced in the lowest 30% of that overall price band to get a contract. Plus your condition has to be in the best 30% of all the houses you are competing against. If you are in the lowest 30% on pricing and the top 30% on condition then you are IN the market and you'll sell.

If you are in the highest 70% of pricing and the lowest 70% of conditon, then your ON the market.

There is a big distinction. You want to be in the market, not on the market. On the market homes are sitting there not selling. They don't show well, they have old wallpaper, old kitchens and baths, they haven't been updated in last 10 years, they have the old carpet, maybe there is a tell-tale pet smell, or just a tired appearance. Buyers aren't jumping off their couches (where they are pretty happy to be right now) to get a tired and average house. That doesn't inspire them. That doesn't emotionally make them fall in love with that house and right now we need them inspired.

So stage your house.  Clean it up. Declutter it.  Freshen it up. Paint it up. Pull down wallpaper.  Add some new landscaping and mulch. If you are not willing to do what it takes to improve the condition, then you better price it as a wholesale house on sale at a great discounted value because that’s how the market see it, not with a retail price.  Retail prices are for houses that show great! 

If you are a Seller whose house shows great, great! You are halfway to sold.  Now all you have to do is price it to sell.

Next trap, if you say my house shows so much better than everyone else's then I'll just jack the price up to the max, then you're going to lose too. Remember house sales are down, that means less buyers. Less buyers with more housing inventory means those buyers have lots of choices and they want a good value.

Price Matters. If you are the most expensive property in your price band, unless they totally love you, they'll keep shopping. And Buyers as I’ve said have lots of choices...lots & lots of choices. If they feel you are overpriced, they won't make an offer. They will move on, looking for the best value and you may not get them back. You get one shot in this market. Make it compelling!

So price it right. Price it to be in the market, rather than on the market. If you are an unmotivated seller and you don’t have to sell, then do whatever you want.  It’s your house and your time, it wastes everyone's time frustrating buyers, other realtors and your realtor who is working hard to get your home sold with an overpriced listing. Realtors can't make the market pay what you want.

So here's the key to winning the game of real estate right now. Price it right and fix it up. Your house needs to be one of the Top 3 that shows the best in your competition and it needs to be priced as one of the best values to get that all important contract.

Click here to view "Price Analysis for the St. Louis Region" 

Good luck. And if you need a Realtor, call me!

If you would like to know specifics on how the market looks in your city or town, e-mail The Anne Dunajcik Group at info@stlouishome.com and we'll do the research and get back to you and post it on our web site and blog too. Just remember ALL REAL ESTATE IS LOCAL!