St. Louis isn’t exactly booming when it comes to job and wage growth, but according to Realtor.com, it is home to one of the country’s hottest housing markets. The site ranks the St. Louis metro area second on its list of top 10 markets to watch in 2016, thanks in part to the area’s solid employment prospects and affordable housing stock. Those factors, coupled with interest rates that remain near historic lows, make the market attractive to both buyers and sellers who may have been waiting for better economic conditions before downsizing or buying a new home.
“Baby boomers who own luxury homes—in St. Louis, this would be considered a home valued at $500,000 and above—are stepping into the market and listing their homes for sale. Many held back during the recession out of concern for selling too low,” says Barbara Balossi, a real estate agent with the Balossi Team at Keller Williams. “This new inventory will inspire move-up buyers to sell their first or second home in pursuit of their ‘forever home.’”
Area agents expect strong sales in several neighborhoods, including perennial hotspots such as Clayton and Ladue. Move-in–ready houses in Webster Groves, Kirkwood, and University City are also attractive, especially if they offer easy access to amenities.
“One very important factor in what people are looking for in all of the buyer categories is walkability,” says Marcia Harris, an agent with Dielmann Sotheby’s International Realty. “People want to be within walking distance to shops, restaurants, and parks.”
Realtor.com ranks the St. Louis metro area second on its list of top 10 markets to watch in 2016, thanks in part to the area’s solid employment prospects and affordable housing stock.
An increasing number of buyers are looking for homes with modern upgrades and open floor plans that are equally suited for everyday living and informal gatherings.
“Formal dining rooms and living rooms no longer seem to be as desirable,” she says. “People want light, open spaces that are efficient, and updated kitchens and baths.”
For young families, a big priority is the school district, which they’re carefully evaluating as part of the home-buying process. Some are enticed by innovative offerings, such as the Maplewood–Richmond Heights School District’s Seed to Table program, which teaches organic gardening and nutrition while promoting environmental stewardship, and MRH’s Early Childhood Center, which uses the Reggio Emilia approach. Other buyers, Balossi says, are drawn to the Lindbergh School District’s formidable academic track record.
“Homes for sale in the Lindbergh School District, when prepared for the market and priced properly, often receive multiple offers,” she says.
And proper preparation should be a main concern for any seller, regardless of the home’s neighborhood and price point. In general, agents recommend looking at a home through the eyes of a buyer. Take care of peeling paint, and make sure that landscaping looks orderly and inviting. Indoors, take the time to thoroughly clean, empty closets, and clear clutter, but if possible, leave rooms furnished to help potential buyers picture what it’s like to live there, says Toni Zychinski, an agent with Wood Brothers Realty.
That’s where a staging company can help. Even when the homeowner is living on the property, a home can benefit from some staging or repurposing of existing items.
“Buyers need an understanding of scale, and placing furniture properly can help buyers understand a room from a spatial perspective,” says Balossi. “If a seller is unable to leave a home staged throughout a listing period, we encourage that at the very least, we have the opportunity to take professional photos of the home with furniture.” Because many potential buyers start searching online well before contacting an agent, high-quality images are essential.
“In addition, make sure that the front of the house is well-lit and that the street address is easy to read at all times,” says Zychinski. “You’d be surprised by how many potential buyers drive by a home at all hours of the day and night.”
After all, buyers are trying to visualize their lives and families in the same space for years to come. That’s a good approach in a market in which housing prices are expected to rise at about the same rate as income—somewhere in the neighborhood of 2 to 4 percent a year. In those circumstances, most buyers shouldn’t try to buy the biggest house they can in the hopes of making a substantial profit when they sell. Instead, they should pick a place that fits their budget—and lifestyle—for the long term, advises William Emmons, senior economic adviser at the Federal Reserve Bank of St. Louis’ Center for Household Financial Stability.
“Buy the house that you want, that you need, that suits your needs,” he explains, “but don’t think of it as a huge speculative investment.”
Inside an Inspection Report
Bill Boerner, owner of STL Home Inspection Services, says he checks “hundreds of items” during a typical inspection, so it’s difficult to highlight just a handful for potential homebuyers. However, he suggests keeping an eye out for the following issues.
- A sagging roof or ridge line, as well as the condition of the roof covering
- Houses that are more than 30 years old without upgraded appliances and heating and cooling systems
- Houses with no gutters and negative grading around the foundation
- Single-pane windows and windows that are hard to open or latch
- Evidence of outdated electrical systems (e.g., a 100-amp system rather than the 200-amp system that is now standard for modern homes)
- Evidence of potential foundation problems, including exterior cracks or cracks in the ceilings or walls
- Evidence of water intrusion in the structure or foundation or noticeable gaps that could lead to water intrusion or pest problems
- Evidence of hazardous materials (e.g., asbestos or lead paint)
- Lack of insulation in the attic
- A musty smell in the basement
- Not every issue is a deal-breaker, Boerner says, but some, such as potential problems with the foundation, should be thoroughly investigated by a professional before the prospective homebuyers seal the deal.
