Is St. Louis Still a Seller’s Market? February 2025 Housing Insights

Written by David Dodge 

The St. Louis real estate market continues to show resilience and growth despite facing challenges such as inventory shortages and seasonal price fluctuations. According to Dennis Norman from St. Louis Real Estate News, home prices have continued to rise, while the number of home sales has decreased due to limited inventory. This trend underscores the competitive nature of the current market, impacting both buyers and sellers.

Key Market Highlights for February 2025:

• Median Sales Price: $250,000 (↑5.71% year-over-year, ↓2.53% month-over-month)
• Median List Price: $250,000 (↑4.21% year-over-year)
• Total Home Sales: 1,821 homes (↓11.94% year-over-year)\

Home Prices Continue to Rise Despite Monthly Dip

The median home sales price in St. Louis reached $250,000 in February 2025, reflecting a 5.71% increase compared to February 2024. This annual price appreciation signals a strong housing market, where demand for homes continues to push prices higher.

However, compared to January 2025, when the median price was $256,500, February saw a slight 2.53% decrease. While some might view this as a downturn, seasonal fluctuations in real estate markets are common, particularly in winter months when buying activity slows slightly before rebounding in the spring. This temporary dip does not indicate a long-term decline but rather a normal adjustment before an expected increase in activity in the coming months.

Similarly, the median list price also saw an increase, reaching $250,000, which is 4.21% higher than in February 2024. This means sellers are continuing to list their homes at higher price points, reflecting ongoing confidence in the market. The combination of increasing sales prices and listing prices suggests that St. Louis remains a seller’s market, where demand is outpacing supply.

Home Sales Decline Due to Inventory Shortages

Although home values are rising, the total number of homes sold in February 2025 was 1,821, a decline of 11.94% compared to February 2024. This decline is primarily attributed to a continued shortage of housing inventory. With fewer homes available on the market, buyers have fewer options, making it more difficult to find suitable properties.

Why Is Inventory So Low?

Several factors contribute to the ongoing inventory shortage:

1. Limited New Construction – Builders have struggled to keep up with demand due to labor shortages, rising material costs, and zoning regulations that slow down development.
2. Homeowners Holding Onto Properties – Many homeowners who refinanced at historically low interest rates in the past few years are reluctant to sell, as buying a new home at today’s higher rates would increase their monthly mortgage payments.
3. Increased Investor Activity – Institutional and individual investors have purchased a significant number of homes in recent years, reducing the number of properties available for traditional homebuyers.

What This Means for Buyers and Sellers

For Sellers:

• Strong Seller’s Market – With limited inventory, sellers are in a strong position to receive competitive offers. Well-priced homes in desirable areas are likely to sell quickly.
• Higher Listing Prices – The increase in median list prices suggests sellers can confidently price their homes higher than in previous years.
• Planning for Your Next Move – While selling may be easier, finding a new home to purchase could be challenging due to low inventory. Sellers should plan ahead to avoid potential difficulties in securing their next property.

For Buyers:

• Competitive Market Conditions – With fewer homes available, buyers must be prepared to act quickly when they find a suitable property.
• Potential Bidding Wars – Given the high demand and low supply, buyers may face multiple-offer situations, requiring them to submit strong, competitive offers.
• Working with an Expert – A knowledgeable real estate agent can provide crucial insights, helping buyers navigate the competitive landscape and negotiate favorable terms.

Market Outlook for 2025

Despite the recent dip in sales volume, the St. Louis real estate market is expected to remain strong throughout 2025. The combination of rising home values, limited inventory, and steady demand will continue to create both challenges and opportunities for buyers and sellers.

Predictions for the Coming Months:

• Spring 2025 Surge: As temperatures rise and buyer activity increases, expect more competition and potentially higher prices.
• Mortgage Rate Impact: If mortgage rates stabilize or decline slightly, buyer demand could increase, putting further pressure on already low inventory levels.
• New Construction Developments: While construction is expected to pick up in certain areas, it is unlikely to meet the current housing demand, keeping inventory tight.

Final Thoughts

As the St. Louis housing market continues to evolve, both buyers and sellers should stay informed and work with experienced professionals to make strategic decisions.

For a more in-depth analysis, including exclusive market data and visual representations, visit www.housesoldeasy.com/blog . Whether you’re considering buying, selling, or simply staying informed, working with a trusted local expert can help you navigate the complexities of the market and make the best decisions for your real estate goals.