St. Louis Real Estate Market: December 2024 vs. January 2025 – What’s Changed?

Written by David Dodge 

As we transition from December 2024 to January 2025, the St. Louis real estate market continues to demonstrate resilience and growth amidst shifting seasonal trends and regional dynamics. Whether you're a prospective homebuyer, an investor, or a seller, understanding these trends can empower you to make more informed decisions in the evolving market landscape. Let’s dive into the key insights and what they mean for you.

December 2024: Real Estate Market Recap

Median Sales Price

In December 2024, the St. Louis Metropolitan Statistical Area (MSA) reported a median sales price of $260,000. This figure represents a strong 9.24% increase from the same time in 2023. This price surge highlights the ongoing appreciation of property values in St. Louis, signaling a stable market with upward momentum despite broader national housing trends. Buyers and sellers alike need to take note of these higher price points as they shape market expectations for 2025.

Inventory Levels

One of the most notable trends in the St. Louis real estate market during December 2024 was the significant increase in inventory levels. St. Charles County, in particular, saw a 23% increase in active listings compared to the previous year. This growth in available homes for sale is a direct response to rising demand and a healthier, more diverse market. However, despite this inventory increase, the region still faces challenges with expired and canceled listings, underscoring the importance of pricing homes competitively and strategically.

For homebuyers, this uptick in inventory could signal a bit more breathing room in terms of selection. But for sellers, it may mean a need to be more flexible in pricing and timing to stand out in a growing pool of listings.

Market Dynamics

The real estate market in St. Louis remained highly competitive through December 2024. Many homes continued to sell rapidly, often exceeding asking prices, as buyers took advantage of historically low mortgage rates and strong demand. While the increase in active inventory and the rise in months of inventory suggest that the market is gradually shifting toward a more balanced environment, sellers who price their properties right will still find plenty of buyer interest.

For both buyers and sellers, it’s crucial to monitor market dynamics closely, as the balance between demand and inventory is constantly evolving. Those who move quickly and strategically may still capitalize on opportunities in this competitive market.

Source: St Louis Real Estate News, House Sold Easy

January 2025: What to Expect Moving Forward

Forecasted Growth for 2025

Looking ahead to January 2025, the St. Louis real estate market is expected to remain a hotbed of activity, with the city ranked as the 6th hottest housing market in the United States for the coming year. According to real estate experts, home prices in St. Louis are projected to rise by 5-7% in 2025, driven by a combination of factors such as continued high demand, limited housing supply, and the city’s overall affordability compared to other major markets.

This predicted growth represents an excellent opportunity for sellers who may want to capitalize on appreciating values, as well as buyers who are prepared to act quickly before prices increase further.

First-Time Homebuyers: A Brighter Outlook

For first-time homebuyers, 2025 offers a promising outlook. After a somewhat slower market in 2024, experts anticipate that conditions will improve for new buyers entering the market in 2025. Lower inventory and rising prices in the past year made it difficult for first-time buyers to compete, but experts suggest that more favorable conditions may emerge as homebuilders ramp up construction and interest rates stabilize.

As a first-time homebuyer in St. Louis, it’s essential to stay informed about financing options, available down payment assistance programs, and market trends. With careful planning, 2025 could present an opportunity to enter the housing market with greater confidence.

Regional Trends and Economic Factors

The St. Louis MSA continues to show consistent growth, with both median sales prices and inventory levels reflecting a healthy real estate environment. The region’s affordable housing market remains a major draw for individuals looking to move to the area, with a cost of living that’s well below the national average.

In addition, St. Louis benefits from ongoing economic growth, with the city expanding its tech, healthcare, and education sectors. These positive economic factors continue to make the area an attractive destination for homebuyers and investors alike.

Seller Strategies for 2025

As we move into 2025, sellers can expect to benefit from continued market stability and price appreciation. However, they must be prepared to adapt to a shifting environment. Competitive pricing remains critical, as homes that are priced too high may struggle to attract buyers in an increasingly saturated market. Sellers should work with experienced agents who can accurately price their homes based on current market conditions and comparable sales in the area.

Buyer Strategies for 2025

For buyers, navigating the market in 2025 will require diligence and preparation. As prices continue to rise, it’s important to understand your budget and secure pre-approval for financing early in the process. Buyers may also want to consider exploring alternative financing options, such as FHA loans, VA loans, or even creative financing strategies, to stay competitive in a market with limited inventory.

Being strategic with your offers, staying patient during negotiations, and being ready to move quickly on your ideal property will be key in securing a good deal.

Conclusion: What Does This Mean for You?

The St. Louis real estate market is poised for continued growth as we head into 2025. Rising home prices, increasing inventory, and a more competitive environment will define the year ahead. For prospective buyers, 2025 presents a window of opportunity, especially if you’re prepared to navigate the evolving landscape with the right strategy.

Whether you're a first-time homebuyer or an experienced investor, staying informed about these trends will help you make well-informed decisions in the St. Louis housing market. The key is understanding the seasonal fluctuations, monitoring inventory levels, and using market insights to your advantage.

As the year unfolds, keep an eye on market updates, and be ready to act when the right opportunity arises.