Metro-East St. Louis Real Estate Trends: 2024 Update

Analyzing Metro-East St. Louis Home Prices and Sales: A 25-Month Review

Over the past 25 months, the Metro-East St. Louis real estate market has experienced significant shifts in both home prices and sales volume. Data provided by MORE, REALTORS®, which covers from August 2022 to August 2024, offers valuable insights into trends involving selling prices, listing prices, and the number of home sales. Understanding these fluctuations is key for both buyers and sellers looking to make informed decisions in this dynamic housing market.

Selling Price vs. Listing Price: A Closer Relationship

One of the most notable trends is the evolving relationship between selling prices and listing prices. From late 2022 to early 2023, selling prices consistently lagged behind listing prices. This indicated a buyer’s market, where sellers often had to lower their expectations to close deals. However, beginning in mid-2023, a shift occurred: selling prices began to align more closely with listing prices, suggesting that the market was becoming more balanced.

By mid-2024, there were instances where the selling price slightly exceeded the listing price, a signal of increased demand in the housing market. Factors such as limited inventory, favorable interest rates, or local economic growth may have driven this trend. Sellers who had previously been forced to lower their asking prices were now able to secure deals at or above the list price, signaling strong market conditions.

Volatility in the Number of Sales: A Seasonal Pattern

The number of home sales, represented by the purple line, demonstrates a recurring seasonal pattern. As seen in 2023 and again in 2024, sales activity tends to peak during the spring and summer months, which is a common trend in real estate markets across the country. This rise in activity can be attributed to factors such as improved weather, school schedules, and a general uptick in market confidence during these months.

However, the graph also highlights sharp declines in sales during the fall and winter months, particularly noticeable in late 2022 and early 2023. This dip may have been exacerbated by rising interest rates, inflation concerns, or broader economic uncertainty during that period. Despite these challenges, the market rebounded strongly in the second half of 2023 and into 2024, evidenced by a significant rise in both home prices and sales volume.

<Market Adjustments and Recovery Post-March 2023

A key turning point for the Metro-East St. Louis real estate market occurred around March 2023. Both selling and listing prices experienced a notable dip, suggesting a brief market correction. This may have been influenced by external factors such as shifts in interest rates, inflationary pressures, or changes in local economic conditions.

However, this correction was short-lived. By summer 2023, both prices and the number of sales were on the rise again, thanks to strong demand and market confidence. This recovery continued into 2024, with the market demonstrating resilience and adaptability. Sellers were particularly favored during this period, with rising prices and solid buyer interest.

Implications for Buyers and Sellers

For buyers, the current market offers both opportunities and challenges. The upward trend in prices means that waiting for a significant price drop may not be the best strategy. However, with selling prices closely aligned with listing prices, buyers can have confidence that they are not overpaying for properties. Acting quickly, especially during the slower fall and winter months, may provide buyers with more negotiating power.

For sellers, the market is highly favorable. With home prices continuing to climb and sales volumes healthy, now is an excellent time to list a property. Sellers who position their homes competitively in the market are likely to see strong interest, especially in the warmer months when demand is highest. Pricing homes in line with current market conditions will increase the likelihood of securing a deal at or above the listing price.

Conclusion

The Metro-East St. Louis real estate market has undergone notable fluctuations over the past two years, as demonstrated by data from MORE, REALTORS®. These shifts have been driven by a combination of economic factors, seasonal trends, and evolving buyer-seller dynamics. As of mid-2024, the market is in a strong position, with increasing home prices and a healthy volume of sales. Buyers should consider acting sooner rather than later given the upward trend in prices, while sellers have the advantage of a market with solid demand.

Looking ahead, the market will continue to evolve. Interest rates, regional economic indicators, and inventory levels will all play a role in shaping future trends. For now, both buyers and sellers can navigate the Metro-East St. Louis real estate market with a clear understanding of the opportunities and challenges presented by current conditions.