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

st. LOUIS, Mo. (KMOV) – The real estate market in St. Louis shows few signs of slowing down, 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{b5e4caabb46945dac267f6fa1789e0b2b1831cce91f79b27f72a0de22e4bb018}.

“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 for them.”

With interest rates pricing fewer people out of the market as 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 who are late 20s early 30s who have gotten out of college and have their good job, but really haven’t decided to settle down in 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 the busiest winter we’ve ever had,” he said. “We haven’t seen anything like it.”

With many homes selling over listing prices, Rankins said both buyers and their agents are suffering from “buyers fatigue.” He recommends getting complete underwriting with a lender 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 will 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.