Demystifying Aluminum Wiring for Homebuyers: Insights from Industry Expert Mike Ragan

In a recent informative video, Mike Ragan, a master electrician, and owner of R&M Electric in St. Charles MO, dispels several myths surrounding aluminum wiring, a subject that often causes apprehension among prospective homebuyers in the St. Louis area. With over 18 years of experience specializing in residential wiring and troubleshooting, Ragan brings a wealth of knowledge to the discussion. He offers crucial insights for anyone considering the purchase of a home equipped with aluminum wiring, providing a fresh perspective on what has traditionally been viewed as a potential dealbreaker.

Ragan assures homebuyers, “Aluminum wiring is not necessarily a bad thing,” explaining that “if things are done correctly using the aluminum wiring, that it’s not dangerous.” He addresses the common fear surrounding aluminum wiring, which stems from its susceptibility to oxidation and the associated risks of overheating and fire hazards in older installations from the 1970s. However, he clarifies that with the correct installation and maintenance procedures in place, aluminum wiring is not inherently dangerous. Key to the safe use of aluminum wiring is the application of specific products like deoxidizing agents and the use of aluminum-rated devices, which prevent oxidation and ensure secure connections.

Moreover, Ragan highlights budget-friendly solutions for addressing aluminum wiring concerns, such as aluminum-rated connections or AlumiConn® connectors, whereby “you can significantly save money by going with the connections… less than half the cost by going through and redoing all the connections.” He strongly recommends that buyers considering a property with aluminum wiring engage a licensed electrician familiar with these issues to conduct a thorough inspection, thereby ensuring the wiring’s integrity and compliance with safety standards.

This dialogue not only educates homebuyers about the realities of aluminum wiring but also reassures them that, with proper attention and maintenance, homes equipped with aluminum wiring can be a safe, viable option. He says, “I would have no problem buying an aluminum wired house if the things we talked about were done correctly.” Ragan’s expertise offers practical guidance for navigating concerns related to aluminum wiring, empowering homebuyers to make informed decisions about their potential purchases.


Interview with St Louis Master Electrician Mike Ragan about Aluminum Wiring Concerns

Could the REALTOR Settlement Bring More Transparency to St. Louis Real Estate?

Yesterday, I reported on the groundbreaking settlement proposed by the National Association of Realtors (NAR) to resolve the ongoing litigation surrounding broker commissions. Today, I want to dive deeper into the specifics of this settlement agreement and what it means for homeowners and real estate professionals here in the St. Louis area.

Key Points of the NAR Settlement Agreement

  • Broad Coverage: The settlement class is expansive, including home sellers who listed properties on MLSs anywhere in the U.S. during specified date ranges and paid a commission to any brokerage. For the St. Louis region, sellers are covered if they sold homes between October 31, 2018, and the date of the official Class Notice.
  • Released Parties: The settlement releases a wide range of parties from future claims related to broker commissions, including NAR, REALTOR associations, and MLSs that adhere to the required practice changes. Brokerages with 2022 transaction volumes under $2 billion are also released if they comply with the new rules.
  • Practice Changes: The agreement mandates significant shifts in industry practices, including:
    • “eliminate and prohibit any requirement by the National Association of REALTORS®, REALTOR® MLS, or Member Boards that listing brokers or sellers must make offers of compensation to buyer brokers or other buyer representatives (either directly or through buyers), and eliminate and prohibit any requirement that such offers, if made, must be blanket, unconditional, or unilateral;”
    • “prohibit REALTOR® MLS Participants, subscribers, other real estate brokers, other real estate agents, and their sellers from (a) making offers of compensation on the MLS to buyer brokers or other buyer representatives (either directly or through buyers) or (b) requiring that offers of compensation be made on the MLS to buyer brokers or other buyer representatives (either directly or through buyers);”
    • “require that REALTOR® MLS Participants who work with buyers enter into written agreements with their buyer clients that specify the broker compensation and how it will be paid, including if it will be paid by the buyer;”
    • “require that REALTOR® MLSs and REALTOR® MLS Participants provide, with any MLS listings that include a listing broker’s offer of compensation to a buyer broker or other buyer representative (either directly or through buyers), (i) disclosure as to the amount of that offer of compensation and (ii) a searchable field that displays buyer broker compensation offers;”
    • “prohibit REALTOR® MLSs, REALTOR® MLS Participants, and REALTOR® Member Boards from taking any adverse action against any Person making offers of compensation to buyer brokers at any price, or no price, either on or off the MLS;”
  • Financial Payout: NAR will pay a total of $418 million over four years to resolve the claims, with the first payment of $5 million due within 30 days of preliminary approval of the settlement. What This Means for St. Louis

What This Means for St. Louis
For homeowners in the St. Louis area, this settlement could bring more transparency to the commission structure when selling a home. By removing the requirement for listing brokers to offer buyer broker compensation through the MLS, the agreement aims to give sellers more control over how commissions are negotiated and paid.

Real estate agents and brokerages in our region will need to adapt to these changes, focusing on educating clients about compensation options and ensuring compliance with the new rules. At MORE, REALTORS®, we’ve been preparing for these shifts and are ready to guide our clients through the evolving landscape.

The full text of the NAR settlement agreement can be found below. As always, I’ll continue to keep you informed about how these developments impact our local market.


The Proposed NAR Settlement Agreement

(click on image to view entire agreement)

The Proposed NAR Settlement Agreement

NAR to Settle Nationwide Litigation on Broker Commissions, Introduces Industry-Wide Changes

Kevin Sears, NAR President

Kevin Sears, NAR President

This morning, Kevin Sears, President of the National Association of Realtors (NAR), unveiled a proposed settlement designed to bring to a close the contentious litigation surrounding broker commissions, a move that could significantly alter the landscape of the real estate industry. This development comes on the heels of the Sitzer-Burnett verdict, which cast the traditional practices of real estate professionals, particularly those concerning hiring and compensation methods, into the spotlight, sparking a series of lawsuits and raising questions about the future of the industry.

A Closer Look at the Proposed Settlement

The core aim of the proposed settlement is to resolve the ongoing litigation against NAR, its members, and associated real estate entities by addressing the claims related to broker commissions. Key components of the settlement include:

  • Liability Release: More than one million NAR members, along with various real estate entities, will be absolved from liability for claims akin to those highlighted in the lawsuits.
  • Compensation Offers: A pivotal change involves the elimination of compensation offers from MLS listings, a rule set to take effect in mid-July 2024.
  • Written Agreements: Starting mid-July 2024, MLS participants working with buyers will be required to engage through written representation agreements.
  • Financial Implications: NAR has committed to paying $418 million over a four-year span, a significant financial undertaking that will not result in an increase in the 2024 membership dues according to the release. (Noted is the fact they didn’t commit to no increases as a result beyond 2024)

Kevin Sears Weighs In

Sears articulated the objectives of the settlement, stating, “This proposed settlement achieves our goals to reduce strain on our members and chart a path forward for the industry.” He further emphasized the industry’s resilience and adaptability, expressing confidence that the agreement “allows us to move forward, preserving the right to real property for all.”

MORE, REALTORS® Prepared for the Future

Yes, this might come off as a shameless plug, but it would be a disservice not to mention how myself, alongside our brokerage’s leadership team, brokers, and agents, have been proactively preparing for the anticipated changes. We’ve delved deep into the issues raised by these lawsuits, identifying practices in need of rectification, regardless of the legal outcomes. Thus, while the shift away from MLS compensation offerings may catch many off guard, our team stands ready. We’re equipped to demystify the compensation process for our clients transparently, dedicating our focus to their needs. Discover more about our exceptional team at MORERealtors.com.

The Proposed NAR Settlement Agreement

(click on image to view entire agreement)

The Proposed NAR Settlement Agreement

Controversy Surrounds Cash for 40-Year Listing Rights Contracts in St. Louis Real Estate Market

Attorney General Andrew Bailey vs MV RealtyMV Realty Holdings, LLC, a Florida-based real estate company, has recently come under scrutiny for alleged wrongdoing and is currently facing bankruptcy proceedings. The company, which offers homeowners cash in exchange for exclusive rights to list their properties for sale for purportedly a period that lasts forty (40) years, has been accused of deceptive practices and unfair treatment of its clients, including homeowners in Missouri and the St. Louis area.

Here in Missouri, MV Realty has faced legal action from Missouri State Attorney General, Andrew Bailey who, earlier this year, filed suit against MV Realty “for its deceptive practices in marketing its services to Missouri homeowners.”  In a press release about this suit, Attorney General Bailey stated “I will enforce the laws as written and defend innocent Missourians from being ripped off” and the he was “proud of the work done by our Consumer Protection Unit to obtain justice for victims in this case.”

The suit filed by Attorney General Bailey alleges that “MV Realty, in violation of Missouri law, paid homeowners a tiny percentage of the value of their homes in exchange for a promise that the homeowner would use MV Realty as their brokers when they sold their homes.”  Attorney General Bailey’s statement about the suit filed goes on to to state that “the petition further alleges that MV Realty failed to tell the homeowners that the contract would be enforceable against their heirs after their death, that the contract bound them for 40 years, and that it would result in a lien being placed on their homes. In some instances, MV Realty falsely told homeowners that MV Realty would not place a lien on their homes, and that they would never have to pay the money back.”

Attorney General Bailey is asking the court to order that the liens be removed, that the agreements are void and unenforceable and to provide restitution to consumers who have been charged unlawful cancellation penalties and then finally to order that MV Realty pay fines and penalties, including $213 million in penalties for calling homeowners on the No Call list.

MV Realty operated in several states and appears to have complaints mounting in many of them from various parties.  In late 2022 the Florida Attorney General’s Office filed a lawsuit against MV Realty, accusing the company of violating the state’s Deceptive and Unfair Trade Practices Act. The lawsuit sought to enjoin MV Realty from engaging in further deceptive practices and to obtain restitution for affected homeowners.

As legal challenges and claims against MV Realty accumulated, MV Realty Holdings and approximately two dozen affiliated companies sought Chapter 11 bankruptcy protection in September 2023. This move automatically initiates a “stay” on existing lawsuits and claims, effectively pausing them. These actions remain on hold until the bankruptcy court either grants relief from the stay or the bankruptcy case concludes through dismissal or discharge. Currently, with the bankruptcy cases still active, proceedings are largely at a standstill. However, indications suggest the bankruptcy court may soon make further developments or progress.

Homeowners, including those in the St. Louis area, who entered agreements with MV Realty, face uncertainty regarding their property liens and seek clarity on their standing as the legal and bankruptcy proceedings progress.

The purpose of sharing this information is to educate homeowners on the importance of thoroughly understanding any agreements concerning their homes, advocating for informed decision-making with the support of qualified professionals. In our real estate practice at MORE, REALTORS®, we emphasize education and leverage a network of trusted professionals to guide homeowners, reflecting our commitment to looking out for our clients best interest and to equipping our clients to make informed decisions.

St. Louis Metro Area Shrinks as Residents Flee Urban Core

The St. Louis Metro Area saw a continued population decline according to the latest U.S. Census Bureau estimates, which show the region’s population decreasing from 2,820,285 in April 2020 to 2,796,999 as of July 2023. This represents a loss of 23,286 residents, or a 0.83% decrease over the three-year period.  Looking at the one-year change, the St. Louis MSA population fell by 3,246, or 0.12%, from 2,800,245 in July 2022 to 2,796,999 in July 2023. Despite these decreases, St. Louis maintained its position as the 21st largest MSA nationally from 2020 to 2023.

Drilling down to the county level reveals that the population decline was not evenly distributed across the MSA. St. Louis County, the most populous county in the metro area, saw its population drop from 1,004,305 in April 2020 to 987,059 in July 2023, a loss of 17,246 residents or a 1.72% decrease. The City of St. Louis experienced an even sharper decline, falling from 301,565 to 281,754 over the same period, a decrease of 19,811 or 6.57%.

In contrast, some outlying counties in the MSA saw population growth. St. Charles County, the second most populous county in the region, grew from 405,271 in April 2020 to 416,659 in July 2023, an increase of 11,388 or 2.81%. Jefferson County’s population also increased, albeit more modestly, from 226,569 to 231,230, a gain of 4,661 or 2.06%.

Other Missouri counties in the MSA saw mixed results. Franklin County’s population rose from 104,689 to 106,404, an increase of 1,715 or 1.64%, while Lincoln County saw strong growth, increasing from 59,578 to 64,699, a gain of 5,121 or 8.59%. However, Warren County had a more moderate increase from 35,528 to 37,806, a growth of 2,278 or 6.41%.

In Illinois, the counties included in the St. Louis MSA also experienced population declines. Madison County’s population fell from 269,484 to 266,368, a loss of 3,116 or 1.16%, while St. Clair County saw a decline from 259,686 to 253,292, a decrease of 6,394 or 2.46%. Monroe County, however, remained relatively stable, with a slight increase of 4 residents or 0.02%, from 34,962 to 34,966.

The data shows that the St. Louis MSA’s overall population decline of 0.83% from 2020 to 2023 was driven largely by significant decreases in the core city of St. Louis (-6.57%) and St. Louis County (-1.72%), as well as declines in the Illinois counties of Madison (-1.16%) and St. Clair (-2.46%). While some suburban and exurban counties experienced population growth, such as Lincoln County (8.59%) and St. Charles County (2.81%), it was not enough to offset the losses in the urban core and Illinois portion of the MSA. This pattern of population shifts from urban to suburban/exurban areas within metro areas has been observed in many other regions across the country in recent years.


St Louis MSA Population Change 2020-2023 By County

County 2020 Population 2023 Population Change % Change
St. Louis County, MO 1,004,305 987,059 -17,246 -1.72%
St. Charles County, MO 405,271 416,659 11,388 2.81%
St. Louis City, MO 301,565 281,754 -19,811 -6.57%
Madison County, IL 269,484 266,368 -3,116 -1.16%
St. Clair County, IL 259,686 253,292 -6,394 -2.46%
Jefferson County, MO 226,569 231,230 4,661 2.06%
Franklin County, MO 104,689 106,404 1,715 1.64%
Lincoln County, MO 59,578 64,699 5,121 8.59%
Warren County, MO 35,528 37,806 2,278 6.41%
Monroe County, IL 34,962 34,966 4 0.02%

 

St Louis MSA Population – 1970-Present

(click on chart for live, interactive chart)

St Louis MSA Population - 1970-Present

 

Zip Codes in the St Louis Metro Area Where Homes Are Selling the Fastest

The St. Louis Metropolitan Area continues to enjoy a fairly fast-paced sellers real estate market, with certain zip codes standing out for selling even faster than the current norm.  According to the report below, available exclusively from MORE, REALTORS®, homes in the top 30 zip codes are selling at an impressive rate, with average days on market ranging from just 2 to 24 days.
Leading the pack is zip code 63049 in Jefferson and St. Louis Counties, Missouri, where homes spend an average of only 2 days on the market. Close behind are zip codes in St. Clair County, Illinois (62258) and Madison County, Illinois (62010), with average selling times of 6 and 7 days, respectively.

Other notable fast-selling areas include zip codes in Warren County, Missouri (63380), St. Louis City, Missouri (63141, 63109, 63147, 63139), and St. Charles County, Missouri (63304, 63385, 63367, 63376). These areas demonstrate the high demand and quick turnover that characterize the St. Louis real estate market.

For buyers, this data highlights the need to act quickly when a desirable property becomes available. Sellers, on the other hand, can take advantage of the fast-paced market to sell their homes efficiently and potentially secure a favorable price.

Understanding the dynamics of these fast-selling zip codes is crucial for anyone navigating the St. Louis real estate landscape. By staying informed and working with experienced professionals, both buyers and sellers can make the most of the opportunities presented by this thriving market.  Want to meet some of St Louis’ finest agents?  Then check them out here.


Fastest Selling Zip Codes In The St Louis MSA

(Click on table below to see current, live and complete list)

Fastest Selling Zip Codes In The St Louis MSA

City Commons: St. Louis’s Emerging Neighborhood Identity

In downtown St. Louis, a significant transformation is taking place, not just in the physical landscape but in the very identity of a burgeoning neighborhood. An ambitious initiative led by a consortium of developers aims to rebrand a key area surrounding the new CityPark, home of the St. Louis City SC, as “City Commons.” This endeavor seeks to establish a distinct identity for the neighborhood, distinguishing it from the broader downtown area. CityPark, a $460 million stadium, along with over $1 billion in surrounding developments, serves as the catalyst for this rebranding effort. The objective is to create a vibrant live-work-play district that encapsulates the essence of community and innovation.

The push to designate this area as City Commons reflects a strategic effort to brand and market the neighborhood as a unique destination within St. Louis. Recognizing the city’s residents’ attachment to neighborhood identities, the developers are harnessing this cultural trait to foster a sense of belonging and pride among locals and visitors. The naming initiative represents more than just a cosmetic change; it’s about crafting a narrative that resonates with the vibrancy and diversity of St. Louis itself. By reimagining the neighborhood as City Commons, the developers are not only aiming to attract investment and development but also to create a cohesive community identity that reflects the area’s renewed purpose and potential.


The Risks of Split Closings in St. Louis: What Buyers and Sellers Need to Know

In the St. Louis real estate market, ‘split closings’—where buyers and sellers close at different title companies—are a common practice. This is in contrast to most parts of the country, where a single title insurance company manages the closing for both parties. Although rare nationally, split closings have become a hallmark of the St. Louis real estate scene.

In a split closing, each title company plays a distinct role. The buyer’s title company is typically responsible for producing the title insurance commitment, ordering buyer-related items (like surveys), and coordinating with the new lender on figures and requirements. Conversely, the seller’s title company takes the commitment from the buyer’s title company and assists the seller in clearing any liens, checking for assessments and specials, and verifying commission and earnest money. Each company then prepares a closing statement for their side, and the two companies reconcile the figures.

Despite being the norm in St. Louis, split closings come with their share of risks and inconveniences. To gain a deeper understanding of these challenges, I consulted Greg Miller, Manager at M&I Title, LLC. He outlined the most common risks and inconveniences stemming from split closings:


Risks and Inconveniences of Split Closings

  • Potential Miscommunication: The division of responsibilities between two title companies can result in crucial information getting lost or misinterpreted. For example, discrepancies in settlement figures or misunderstanding regarding the readiness of documents can cause significant delays.
  • Difficulty in Resolving Issues: On the day of closing, last-minute hurdles such as undiscovered liens, discrepancies in documents, or issues arising from the final walkthrough can be more cumbersome. Each title company may have different procedures for handling these issues, complicating coordination and resolution efforts.
  • Delayed Seller Proceeds: For sellers, this delay means that the proceeds from the sale may not be available on the day of closing. This is particularly problematic for sellers who are relying on these funds to purchase another home simultaneously. The absence of timely proceeds can disrupt the entire chain of transactions, potentially leading to breaches of contract or the need for temporary, and often costly, financial arrangements.
  • Buyer Possession Issues: Buyers, on the other hand, may face delays in gaining possession of their new home. Since a real estate transaction is not considered closed until it is fully funded and the deed has been delivered to the buyer, any delay in these processes means the buyer technically does not own the home. This could result in the buyer being unable to move into their new home as planned, leading to additional costs or complications, especially if they have already vacated their previous residence.
  • Increased Costs: Sellers may face additional fees for closing services, courier charges for document transfers, and possibly higher coordination fees due to the involvement of an additional title company. These costs can vary widely and may also impact buyers if contractually passed on.
  • Wire Fraud Vulnerability: The exchange of sensitive financial information between multiple parties increases the risk of interception by cybercriminals. The complexity of communication can make it easier for fraudulent wire transfer instructions to go unnoticed until too late.

Additional Considerations

  • Privacy Concerns: With two title companies involved, sensitive personal and financial information is shared more broadly, increasing the risk of data breaches or unauthorized access.
  • Complex Coordination for Agents and Lenders: Real estate agents and lenders must navigate communication between two companies, adding complexity to their roles and potentially straining relationships with clients due to unforeseen delays or issues.
  • Risk of Non-Compliance: Each title company may interpret regulatory requirements slightly differently. This divergence can lead to compliance issues, affecting the legality of the closing process and potentially exposing all parties to legal risks.
  • Customer Service Variability: With two companies involved, the level of customer service can vary, potentially leading to a disjointed experience for both buyer and seller. Inconsistent communication or service levels can increase stress and dissatisfaction with the process.

By understanding these expanded issues and additional considerations, professionals and clients in the St. Louis real estate market can better prepare for the complexities of split closings. Strategies such as enhanced communication protocols, clearer contractual agreements regarding responsibilities and fees, and increased vigilance against fraud can mitigate some of these challenges.


 

St Louis New Home Constructions Begins 2024 Down From a Year Ago

In the 12-month period ended January 31, 2024 the St. Louis area saw the issuance of 3,996 building permits for new single-family homes. This represents a decline of 3.64% compared to the previous 12-month period, which had 4,147 permits, according to the latest figures from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). This downward trend was noted across all counties with the exception of St. Charles County, with two counties reporting double-digit decreases.


  

St Louis New Home Building Permits – January 2024

(click on table below for page with live charts showing additional permit data)St Louis New Home Building Permits - January 2024

 

St. Louis MSA’s Population Dynamics Over 50 Years

As the table and charts below illustrate, the St. Louis Metropolitatn Area (MSA) has undergone significant demographic shifts over the past 50 years, marked by a stark contrast between the population trends in the City of St. Louis and its surrounding counties.

St Louis MSA and Major Counties Population 1970-2022

St Louis MSA Population 1970-Present Table

The decline in the City of St. Louis’s population sharply contrasts with the growth in surrounding counties. During the same period that St. Charles County witnessed a 345% increase and the St. Louis MSA as a whole saw nearly a 60% rise, the City of St. Louis experienced nearly a 70% drop in population.

Over the last 50 years, the St. Louis MSA has undergone significant shifts in its population, characterized by substantial declines in the City of St. Louis and remarkable growth in suburban counties. This trend can largely be attributed to a combination of factors, including urban blight, which is characterized by the deterioration and abandonment of buildings, leading to a diminished quality of life and decreased property values. The escalation of crime rates further compounded the city’s challenges, rendering it less appealing for families and individuals in search of safe, stable environments. Furthermore, governance issues, marked by inefficient public services and policies that failed to effectively address the needs of urban residents, have also contributed to the population decline. These factors, coupled with the allure of suburban living—offering more spacious living conditions, better educational facilities, and a perceived higher level of safety—have propelled the demographic shift away from the city center and towards the suburbs.

St Louis MSA and City of St Louis Population – 1970 – 2022 Chart

(click on chart for live interactive chart)

St Louis MSA and City of St Louis Population - 1970 - 2022 Chart

St Louis Major Counties Population- 1970 – 2022 Chart

(click on chart for live interactive chart)

St Louis Major Counties Population- 1970 - 2022 Chart


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Smaller, Personalized Homes Dominate 2024 Trends: Insights from NAHB Study

The dynamics of the new home market are shifting significantly as we advance into 2024, with a clear trend towards smaller, more personalized living spaces emerging nationwide. This evolution reflects a broader change in homeowner preferences and market conditions, according to the latest “What Home Buyers Really Want” study by the National Association of Home Builders (NAHB).

Recent data points to a decline in the average size of new homes, continuing a trend that began following a brief uptick in 2021. The average new home size has decreased to 2,411 square feet in 2023, marking the smallest average size in over a decade. This reduction aligns with homebuyers’ preferences, which have also shifted towards more compact living spaces. Today, the desired home size is around 2,070 square feet, significantly less than the 2,260 square feet preferred two decades ago.

Rose Quint, NAHB’s assistant vice president of survey research, identifies two main factors driving this trend: a change in homebuyer preferences and the escalating challenge of housing affordability. In response, builders are adapting their strategies, with 38% reporting a shift towards constructing smaller homes in 2023 to facilitate sales, and 26% planning to continue this approach into 2024. Efforts to address affordability concerns have led to reductions in median new home prices to $427,400 in 2023, a 7 percentage point drop from the previous year and the most significant decrease since 2009.

Beyond size, homebuyers are increasingly seeking personalized and authentic living spaces. Donald Ruthroff, AIA, of Design Story Spaces LLC, highlights a growing demand for customization, with homeowners desiring unique features that set their homes apart. This trend towards personalization is evident in the choice of home upgrades, from custom kitchen islands to premium flooring options.

The study also reveals that homebuyers’ priorities have evolved, with a focus on outdoor living, kitchen functionality, and energy efficiency. Top desired features include laundry rooms, patios, Energy Star windows, and smart home technology, such as security cameras and programmable thermostats. Additionally, preferences have expanded to include quartz countertops, outdoor kitchens, and built-in seating, underscoring a shift towards both practicality and luxury in home design.

As we move through 2024, the shift towards smaller, more personalized homes is reshaping the real estate landscape. This trend, driven by changing preferences and affordability challenges, highlights the importance of staying informed about market dynamics for both homebuyers and builders and you’re in the right place now to do that, St Louis Real Estate News.


  

 

Newly Released Consumer Report Examines Buyer Agency Contracts Citing Unfair Provisions

A report titled “Required Buyer Agency Contracts: Impacts On Home Buyers” was recently released by Stephen Brobeck, Senior Fellow with the Consumer Federation of America. In the introduction, Brobeck states, ‘This report will discuss several aspects of buyer agency contracts – important content, unfair provisions, format and timing, and recommended use by consumers.’ He suggests that state governments or the courts should prohibit certain unfair practices, such as allowing ‘buyer agents to arrange, with listing agents, additional compensation from sellers beyond what is negotiated with buyers,’ stating that such practices could ‘thwart any efforts to sufficiently separate buyer agent and listing agent commissions so that both buyers and sellers can independently negotiate the commissions of their agents.’

The Consumer Federation of America (CFA), and specifically Stephen Brobeck, have been notably critical of the National Association of Realtors (NAR) for some time, so it’s not surprising they have issued this report to sound the alarm on buyer agency agreements. While the CFA is not always critical of NAR or the real estate industry’s practices, my observations over the last few years suggest they often focus on criticizing unfair or unjust practices rather than commending good ones. After all, as a consumer watchdog, it’s likely they spend more time looking for problems to address. Despite my lifelong career in the real estate industry, I also take a hard look at it, always seeking areas for improvement.


I went through the report and here is my summary of the major issues it points out, along with my thoughts on each. My section headings match those in the report for those who want to explore further.

  • Supplemental Buyer Agent Compensation: The report criticizes situations where a listing agent offers a buyer’s agent commission higher than what the buyer’s agent negotiated with the buyer, keeping the difference. It argues this is unfair and that any excess should benefit the buyer, not the agent. In St. Louis, the standard REALTOR® buyer agency contract specifies a “minimum commission” for the buyer’s agent, usually covered by the seller through the listing agent. With upcoming changes potentially prohibiting sellers from offering compensation to buyer’s agents, this dynamic might shift, but currently, it seems less of a concern here.
  • Unreasonable Fees: The report labels “administrative” or “transaction” fees, typically ranging from $200 to $900, as “junk fees” and unjustifiable given today’s high commission rates. My view is mixed. On one hand, I prefer a single, comprehensive charge for services; on the other, a fixed transaction fee could help normalize returns from variable commissions. These fees shouldn’t be blanketly labeled as unfair; total cost for representation should provide fair value, regardless of its structure.
  • Requiring Buyer Acceptance of Dual Agency, Designated Agency, or Transaction Brokerage: The report criticizes agreements that pre-emptively commit buyers to accept a change in their agent’s role to a dual agent, designated agent, or transaction broker. I concur on dual agency and transaction brokerage concerns but not on designated agency, as it doesn’t alter the buyer’s agent role but designates them for a specific client within a firm. In our firm, MORE, REALTORS®, we advise against dual agency and switching to transaction brokerage, emphasizing consistent representation and fiduciary duty.
  • Not Explaining How Conflicts of Interest Involving Other Buyer Clients Are Resolved: The report points out the lack of clarity in most buyer’s agency contracts on how conflicts of interest with multiple buyers interested in the same property are managed. I agree and believe that with industry changes, including buyers directly paying agents, there will be demand for clearer conflict resolution strategies and perhaps exclusivity agreements, provided they are narrowly defined to prevent conflicts without overly restricting the agent’s business.

An upside to the recent litigation spotlighting the real estate industry is the emergence of reports and analyses that, though not always accurate or impartial, spotlight key issues and foster a more transparent environment for consumers. I personally view this shift toward greater transparency and consumer understanding of the real estate process as one of the major benefits of the industry’s forthcoming changes. Better-informed consumers will be equipped to more thoroughly evaluate the qualifications of the agents they choose to work with. This, in turn, will benefit dedicated and professional agents, while naturally filtering out those who lack the necessary knowledge, ethics, or comprehension to thrive in the business.

Facing New Rules: NAR and DOJ Clash Over Buyer’s Agent Commission Policies – What It Means for You

Kevin Sears,
2024 NAR President

At a real estate conference in Boston on February 1, 2024, NAR President Kevin Sears addressed a pressing issue facing the National Association of Realtors (NAR) and its members. Sears candidly discussed the aftermath of a $5.4 billion verdict against NAR, drawing parallels to a sports scenario to highlight the disappointment of a loss despite believing in the righteousness of their policy and actions. He emphasized the importance of moving forward, focusing on the legal appeals process and the ongoing challenges with the Department of Justice (DOJ), which has been a persistent adversary for NAR.

Sears detailed the history of NAR’s interactions with the DOJ, including a settled agreement in 2020, which the DOJ later contested, leading to further legal battles. He highlighted a specific case involving MLS Property Information Network (MLS PIN) in Massachusetts, which faced a “copycat lawsuit” and encountered DOJ objections to settlement agreements, underscoring the DOJ’s significant influence on the real estate industry’s operations.

Kevin Sears provided a comprehensive overview of the National Association of Realtors’ (NAR) complex and ongoing interactions with the Department of Justice (DOJ), painting a picture of an enduring legal struggle that has deep implications for the real estate industry. He began by recounting a pivotal moment in 2020 when NAR reached a settlement agreement with the DOJ, a moment that seemed to mark the beginning of a resolution to their disputes. However, this sense of resolution was short-lived as the DOJ later contested the terms of the agreement, reigniting a series of legal challenges that have since persisted.

Sears’ narrative then shifted focus to a more recent and illustrative example of these challenges: the case involving the MLS Property Information Network (MLS PIN) in Massachusetts. This particular case, described by Sears as a “copycat lawsuit,” mirrored the broader issues at stake between NAR and the DOJ. The lawsuit led to a proposed settlement agreement between MLS PIN and the plaintiff’s attorneys, which, in a turn of events characteristic of the DOJ’s recent interventions, faced objections from the DOJ. The federal department’s refusal to endorse the settlement underscored its readiness to closely scrutinize and influence the outcomes of legal disputes in the real estate sector.

Through these examples, Sears emphasized the DOJ’s significant and active role in shaping the operational landscape of the real estate industry. He highlighted the DOJ’s apparent commitment to altering traditional practices within the industry, particularly those related to the compensation of buyer’s agents through commissions offered by sellers. This ongoing legal saga between NAR, its members, and the DOJ not only reflects the complexities of antitrust law in real estate but also signals a potentially transformative period for industry practices and professional relationships.


 

Key Points Made by Kevin Sears:

  • Acknowledged the $5.4 billion verdict against NAR, emphasizing the need to move forward through legal appeals and post-trial motions.
  • Highlighted the longstanding challenges with the DOJ, including a contested settlement and ongoing legal disputes.
  • Discussed the specifics of a lawsuit involving MLS PIN in Massachusetts, illustrating the DOJ’s active role in scrutinizing industry practices and settlements.
  • Stressed the importance of adapting to changes in the real estate industry, particularly regarding how businesses operate and how realtors are compensated.
  • Urged the audience to consider the future of the industry and the necessity of embracing change, whether willingly or as a result of external pressures.

The Impact of Credit Scores on St. Louis Real Estate Decisions

Whether you’re looking to buy or rent a home, your credit score is more than just a number—it’s a gateway to your future residence. A recent survey by LendingTree has shed light on the significant role credit scores play in Americans’ access to financial products, including those crucial for securing a home. Here’s a recap of the findings and their implications for the St. Louis real estate market.

Key Findings:

  • High Denial Rates: 42% of Americans reported their credit scores prevented them from obtaining a financial product in the past year, with this figure soaring to 74% among those with poor credit. For St. Louis residents, this could mean increased challenges in securing mortgages or rental agreements.
  • Credit Cards and Personal Loans: The top products consumers were denied due to their credit scores were credit cards (25%) and personal loans (12%). While not directly related to real estate, these denials can impact one’s ability to consolidate debt or cover moving expenses, indirectly affecting home buying or renting capabilities.
  • Perception of Financial Responsibility: 40% of Americans believe their credit scores do not accurately reflect their financial responsibility. This sentiment is even higher among those with poor credit (60%), millennials (47%), and women (44%). For potential homebuyers or renters in St. Louis, this discrepancy could lead to frustration and barriers in the housing market.
  • Payment History’s Importance: Despite being the most crucial factor in credit score calculations, 50% of Americans are unaware that payment history holds the most weight. This lack of knowledge can lead to missed opportunities for improving credit scores and, by extension, securing better terms for mortgages or leases.
  • Improving Credit Scores: The survey revealed that paying off debt was the primary method for improving credit scores over the past year. For St. Louis residents, understanding and applying this knowledge can be a strategic move towards enhancing eligibility for home buying or renting.


Implications for St. Louis Real Estate:
The survey’s insights highlight a critical barrier to homeownership and renting: the impact of credit scores on financial product accessibility. For St. Louis real estate professionals and potential homebuyers or renters, this underscores the importance of credit education and management as foundational steps towards achieving housing goals.

  • Educational Opportunities: Real estate professionals, such as the Masters of Real Estate at MORE, REALTORS®, can provide valuable guidance to clients on improving credit scores, emphasizing the role of payment history and debt management.
  • Strategic Planning: Understanding the weight of credit scores in financial decisions can help potential buyers or renters in St. Louis develop strategies to improve their scores before applying for mortgages or leases.
  • Market Accessibility: For those with poor credit, exploring alternative financing options or seeking professional credit counseling could open doors to the real estate market that might otherwise remain closed.

In St. Louis, as in the rest of the country, a strong credit score is more than just a number—it’s a key that unlocks the door to future housing opportunities. The recent LendingTree survey provides a basis for understanding the challenges and strategies related to credit scores in the real estate market. By focusing on credit education and management, St. Louis residents can navigate these challenges more effectively, making the dream of buying or renting a home more attainable.

 

2024’s Top Paint Colors: Boost Your St. Louis Home’s Appeal

In 2024, the focus for homeowners is clear: refreshing interiors with colors that offer both a sense of calm and a reflection of personal style. The 2024 Paint & Color Trends Report from FIXr reveals a shift towards warm, earthy tones and nature-inspired hues, designed to transform homes into serene havens. Greens, blues, bright yellows, and deep olives are set to dominate, promising spaces that not only stand out but also provide an escape from the daily grind. This year, it’s all about bringing the tranquility of the outdoors inside, with a nod to personal expression through bold color choices.

The report, a comprehensive guide compiled with insights from top industry experts, serves as a valuable resource for anyone looking to update their home. It underscores the importance of creating environments that are not just visually appealing but also emotionally resonant. For St. Louis residents contemplating a home makeover, this guide offers a wealth of information, from the most sought-after colors to tips on enhancing home value and personal comfort. It’s an invitation to rethink your space, ensuring it reflects the latest trends while catering to your unique taste and lifestyle.

For those interested in exploring the full spectrum of 2024’s paint and color trends, the complete report is accessible below for in-depth review. It’s an essential read for homeowners aiming to infuse their spaces with the year’s most captivating and soothing colors.


2024 Paint & Color Trends Report

(click image below to access complete report in PDF form)

2024 Paint & Color Trends Report

DOJ Suggests Ending Seller-Paid Buyer Agent Commissions

Yesterday, the Department of Justice filed a Statement of Interest  concerning the Nosalek v. MLS PIN case.  In the class action lawsuit Nosalek v. MLS Property Information Network, Inc., plaintiffs allege that mandatory commission agreements for buyer-brokers on the MLS system are anticompetitive, leading to artificially inflated commission rates for sellers, in violation of antitrust laws.  Previously, a settlement was reached by the parties in the lawsuit, but the DOJ intervened, asking the court to hear the views of the United States before deciding whether to approve the settlement.  This statement of interest was what the DOJ asked the court to wait for.

In the Statement of Interest, the Department of Justice conducts a critical examination of buyer agent commissions, suggesting that a transformative approach to real estate transactions is needed. The Department critiques the current practice of seller-offered commissions to buyer brokers for maintaining artificially high fees and stifling competition. It does not think the proposed changes in the settlement go far enough, stating, “as long as sellers can make buyer-broker commission offers, they will continue to offer ‘customary’ commissions out of fear that buyer brokers will direct buyers away from listings with lower commissions.” Their alternative? The DOJ states, “the parties could propose an injunction that would prohibit sellers from making commission offers to buyer brokers at all. That injunction would promote competition by empowering buyers to negotiate directly with their own brokers.” Ah, what I’ve been predicting for some time now, that a real estate agent will only be able to be paid by their client.

While this case is in Massachusetts and does not directly impact the St. Louis real estate industry, industry leaders throughout the country have been anxiously monitoring the suit to get a better idea of what the DOJ is going to want from the industry as a whole, which I think we clearly see with this filing.


 

Statement of Interest of The United States – Nosalek v MLS PIN


St Louis Metro Area Real Estate Market Report for January 2024 with accurate data you can trust

The St. Louis Metro Area Real Estate Market Report for January 2024, presented below, provides an overview of the St Louis real estate market for each county within the St Louis MSA. This infographic is a unique offering from MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area.

St Louis Metro Real Estate Report for January 2024

(click on infographic for complete report including all counties in the St Louis Metro Area)St Louis Metro Real Estate Report for January 2024

Consumer Confidence in Mortgage Rates Soars, Marking a Positive Shift in Housing Sentiment for 2024

The latest release from Fannie Mae on the Home Purchase Sentiment Index® (HPSI) is particularly illuminating, showing a notable uptick in consumer optimism towards mortgage rates. For the first time since March 2022, the HPSI has climbed to 70.7, a 3.5-point increase driven largely by heightened confidence in job security and an unprecedented share of consumers expecting mortgage rates to dip in the coming year. This optimism isn’t just numbers on a page; it’s a palpable shift in the air, with 82% of respondents now feeling secure in their employment prospects, and an all-time survey high of 36% predicting lower mortgage rates ahead. Yet, despite this optimism, the stark reality remains that only 17% believe it’s a good time to buy a home, underscoring a persistent pessimism around purchasing conditions.


 

Fannie Mae Home Purchase Sentiment Index Chart

(click on chart for current, live-interactive chart)

Fannie Mae Home Purchase Sentiment Index Chart

St. Louis Housing Affordability Increases Slightly In Last Quarter of 2023

The latest figures from the NAHB/Wells Fargo Housing Opportunity Index reveal that 70.8% of people in the St. Louis MSA, with a median income of $101,200, could afford to buy a median-priced home. This percentage has seen a slight increase from the 3rd quarter of 2023, when it was 69.3%. As demonstrated in the chart below, this positions St. Louis as the 31st most affordable metro area for home purchases, out of the 242 that were ranked.

  

St Louis MSA Housing Affordability & National Rank (2014-2023)

St Louis MSA Housing Affordability & National Rank (2014-2023)

Despite High Demand and Low Inventory, St. Louis New Home Permits Hit Nine-Year Low in 2023

In 2023, the St. Louis area saw the issuance of 3,891 building permits for new single-family homes. This represents a decline of 10.78% compared to the previous year, which had 4,361 permits, according to the latest figures from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). This downward trend was noted across all counties with the exception of St. Charles County, where five counties reported double-digit decreases. Additionally, Warren County, which had been on a four-month streak of increased permit activity, experienced a slight drop this month. The total of 3,891 permits in 2023 is the lowest the St. Louis area has seen since 2014, when 3,843 permits were issued. Furthermore, this total is nearly 17% below the 20-year average of 4,680 permits annually and 11% below the 20-year median of 4,375 permits.


  

St Louis New Home Building Permits – December 2023

(click on table below for page with live charts showing additional permit data)

 

St. Louis Residential Rental Vacancies for 2023 Hit Highest Level in Four Years

The latest residential vacancy rate data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) shows that the rental vacancy rate for 2023 was an average of 7.73% and increase of over a percentage point from the previous year. As the chart below illustrates, the average St Louis rental vacancy rate for 2023 was the highest in four years.


  

 

St Louis MSA Rental Vacancy Rate 2015-2023

St Louis MSA Rental Vacancy Rate 2015-2023

Home Ownership Rate in St. Louis Metro Area Fell to Lowest Level in Four Years in 2023

The latest home ownership data from the U.S. Census Bureau for the St. Louis Metropolitan Statistical Area (MSA) reveals that the ownership rate in the 4th quarter of last year was 69.5%, a decline of over 2 full percentage points from the same quarter in the previous year. The Census Bureau reports home ownership rates on a quarterly basis, and the average rate for 2023 in the St. Louis metro area was 69.5%. This marks the lowest average homeownership rate for St. Louis since 2019, when it was 68.1%. The homeownership rate reached a recent peak in St. Louis in 2021, registering at 73.8%.

 

 

St Louis Metro Area Home Sales Fall to Lowest Level in 9 Years

As 2023 drew to a close, the St. Louis metro real estate market concluded the year with a total of 31,747 homes sold. As highlighted in the chart below, this figure represents the lowest annual home sales in the St. Louis MSA in nine years, since 2014, when the total was 31,531 homes sold.

Home prices in the St. Louis MSA have shown more resilience than sales volumes. As 2023 came to a close, the 12-month median home price per foot stood at $169, marking a 5% increase from the previous year. This trend provides a stark contrast to the sales figures. Over the past nine years, while the number of homes sold initially rose, it eventually reverted to levels seen nine years ago. In contrast, the median price per foot for homes sold has witnessed a substantial increase of over 74%, soaring from $97 per foot to $169 per foot.


12-Month Home Sales and Price Trend For the St Louis MSA For the Past 15 Years

(click on chart for live, interactive chart)

12-Month Home Sales and Price Trend For the St Louis MSA For the Past 15 Years

St. Louis Retirement Real Estate: A New Era According to Latest Report

Home in Retirement: More Freedom, New ChoicesIn the St. Louis real estate market, understanding the choices of retirees is crucial. The Merrill Lynch-Age Wave report, “Home in Retirement: More Freedom, New Choices,” offers valuable data-driven insights. It reveals a significant shift in retirees’ housing preferences, with a focus on lifestyle-driven relocation rather than just downsizing.

Key Insights:

  • Renovation Trends: Retirees are increasingly focusing on home renovations to improve comfort and safety. This trend is driven by the desire to age in place comfortably, adapting their living spaces to suit changing mobility and health needs, as well as to accommodate visits from family and friends.
  • Financial Stability through Homeownership: The report indicates that home equity is a significant aspect of retirees’ financial security. Many retirees own their homes outright, providing a stable financial base and the possibility of leveraging this equity for additional income or security in retirement.
  • Community and Location Preferences: Retirees show a growing preference for living in age-specific communities or areas with desirable amenities and climates. This shift is influenced by the desire for social interaction with peers, access to health care and recreational activities, and the appeal of living in a more comfortable and suitable environment for their lifestyle needs.

At MORE, REALTORS®, we recognize the unique real estate needs of the senior market in St. Louis. Our team includes several agents specialized in this sector, having undergone extensive training to acquire specialized designations such as Certified Senior Advisor® (CSA), Seniors Real Estate Specialist® (SRES), Certified Senior Housing Professional, and Certified Downsizing Coach. These qualifications equip us to offer tailored services and advice to retirees, ensuring they make informed decisions that align with their lifestyle, comfort, and financial goals. Our expertise positions us as a trusted partner for seniors navigating the St. Louis real estate market.

For a complete understanding of these trends, the entire report is available for review.


 

 

Exploring the 2024 Rental Affordability Report: Insights for the St. Louis Real Estate Market

Today, ATTOM released its ‘2024 Rental Affordability Report,’ presenting a comprehensive analysis of the current state of home rental and ownership in the United States. The report indicates that renting a median three-bedroom home is more affordable than owning a similarly-sized property in nearly 90% of the U.S. markets. This trend continues despite rents growing faster than home prices. A significant finding for our industry is that both renting and owning pose substantial financial burdens on average workers, consuming over a third of their wages in most county-level housing markets.

Data for St. Louis County is consistent with the report.

Since the report covered only counties with a population of 1 million people or greater, St. Louis County was the sole county from our area included.  The report highlights that in St. Louis County, MO, renting remains more affordable compared to owning. This reflects the national trend, with median three-bedroom rents requiring only 24% of average local wages compared to higher percentages for home ownership costs. It’s worth noting that the affordability gap between renting and owning in St. Louis County is much narrower than in many counties in the U.S., particularly coastal areas.

Things may change soon though based upon trends shown.

The report reveals that in 2024, median rents for three-bedroom homes have risen more than single-family home prices in a majority of counties. This indicates a shift in the rental market dynamics, emphasizing the growing challenge for renters in finding affordable housing.


Rent vs. Wage Growth

An alarming trend noted in the report is that median three-bedroom rents are increasing faster than average local wages in over half of the markets analyzed. This disparity is a crucial factor contributing to the affordability crisis, as it indicates that wage growth is not keeping pace with rising housing costs.

Buying a Home: Long-Term Certainty vs. Short-Term Instability.

For those who have been following my articles over the past few years, I hope you’ve realized that I don’t blindly advocate for homeownership. I recognize that owning a home isn’t the best choice for everyone. In many cases, renting a home or an apartment is a better fit. However, considering the details in this report, it’s clear why buying a home can be advantageous for those in a position to do so. It offers the long-term certainty of fixed costs, contrasting sharply with the volatility of the rental market. This contrast is especially pertinent in light of the report’s findings that rent increases are outstripping wage growth.

Understanding Your Real Estate Options

At MORE REALTORS®, we pride ourselves on having a team of some of the most skilled and professional real estate agents in the St. Louis area. Our agents are dedicated to providing informed guidance tailored to each individual’s needs. Whether you’re considering buying or leasing, we’re here to offer insights and assistance based on your unique situation. For more information about our agents and the services we offer, please visit morerealtors.com. Alternatively, you can contact me directly at Dennis@STLRE.com, and I’d be happy to connect you with one of our knowledgeable real estate professionals.


New Single-Family Home Permits Dip by 14.71% in St. Louis Area; Warren County Bucks the Trend

During the 12-month period ending November 30, 2023, there were 3,932 building permits issued for new single-family homes in the St. Louis area. This figure marks a 14.71% decrease from the previous 12-month period, which saw 4,515 permits issued, as per the latest data from the Home Builders Association of St. Louis & Eastern Missouri (St. Louis HBA). The downturn was observed in all counties except Warren County, with five of them experiencing double-digit declines. Warren County notably reported an increase in building permits for the fourth consecutive month.


  

St Louis New Home Building Permits – November 2023

(click on table below for page with live charts showing additional permit data)St Louis New Home Building Permits - November 2023

 

Market Overload: Report Reveals Surplus of Agents in Real Estate

In their report, “A Surfeit of Real Estate Agents: Industry and Consumer Impacts,” the Consumer Federation of America (CFA) sheds light on a pressing issue in the real estate industry: the overwhelming number of agents. This surplus, as detailed in the report, is not just a numbers game; it’s a matter of market efficiency and service quality, deeply affecting both agents and consumers in markets like St. Louis.

While I may not always agree with the Consumer Federation of America’s views, including certain aspects of this report, many of their points echo my own observations at MORE, REALTORS®. We constantly strive to enhance our agents’ education and consumer knowledge, while also improving service quality for home buyers and sellers through innovative technology. This proactive approach in real estate brokerage sets us apart, enabling us to anticipate and address potential industry issues, often identified by external observers like the CFA, before they escalate.


Some of the problems identified in the report, with each point followed by my thoughts,  are:

  • Agent Over-saturation: The influx of part-time agents has saturated the market, impacting incomes and service quality.
    • The recent strong sellers’ market created a misleading ease in real estate success, attracting numerous new agents. As the market normalizes, many realize the need for deeper knowledge and commitment to provide professional service. At MORE, we understand this isn’t just about numbers; it’s about upholding excellence.
  • Professional Development: The report emphasizes the importance of continuous professional development and specialization to differentiate full-time agents from part-timers.
    • I wholeheartedly agree with the report’s emphasis on continuous professional development. At our company, I lead weekly online coaching and training sessions, attended by our agents. We don’t just stop at a salesperson’s license in Missouri; we encourage further education, including obtaining a broker’s license and professional designations, to demonstrate our commitment to excellence.
  • Technology and Efficiency: Utilizing technology to enhance efficiency and reduce operational costs, thereby allowing full-time agents to remain competitive and profitable.
    • While the report discusses technology from an agent profitability standpoint, I view it as a tool for providing more data and resources to clients efficiently and effectively, thereby maximizing the value delivered by our agents.
  • Consumer Education: Educating consumers about the value of experienced, full-time agents to ensure better service quality and market efficiency.
    • This is a crucial area for me. For over 14 years, I’ve been actively writing articles and sharing insights on St Louis Real Estate News, aiming to educate both consumers and agents. An informed consumer base leads to better decisions, rewarding high-quality, professional agents.

In conclusion, the CFA’s report “A Surfeit of Real Estate Agents: Industry and Consumer Impacts” illuminates significant challenges in today’s market, particularly the glut of agents. At MORE, REALTORS®, we’ve been proactive in addressing these issues through continuous professional development, technological advancement, and consumer education. Our approach isn’t just about adapting to current trends; it’s about setting a higher standard in real estate service. As we navigate these industry changes, our commitment to excellence and informed service remains our guiding principle, ensuring we continue to deliver unmatched value to our clients in St. Louis.


A Surfeit of Real Estate Agents: Industry and Consumer Impacts

(click on image below to view entire report)

A Surfeit of Real Estate Agents: Industry and Consumer Impacts

St Louis Metro Area Real Estate Market Report for December 2023 with accurate data you can trust

The St. Louis Metro Area Real Estate Market Report for December 2023, presented below, provides an overview of the St Louis real estate market for each county within the St Louis MSA. This infographic is a unique offering from “MORE, REALTORS, which is renowned for its expertise in St. Louis real estate market intelligence. Additionally, our brokerage prides itself on having a team of the most experienced and knowledgeable agents who are deeply committed to serving our clients throughout the St. Louis metro area


St Louis Metro Real Estate Report for December 2023

(click on infographic for complete report including all counties in the St Louis Metro Area)St Louis Metro Real Estate Report for December 2023

St. Louis Foreclosure Filings Plummet: Find Out What’s Happening in Your County

The St. Louis MSA has seen a notable decrease in foreclosure filings in the fourth quarter of 2023, with the numbers falling to 851, a 19% reduction from the previous quarter. When we look at the year-over-year data, the decline is even more significant, showing a 46% drop from the fourth quarter of 2022. This downward trend suggests a potentially stabilizing real estate market in the St Louis metro area, with fewer properties entering foreclosure.

Within this broader picture, certain counties have experienced remarkable changes. Monroe County, for instance, recorded a sharp increase of 60% in foreclosure filings from Q3, while Madison County saw filings decrease by 7% in the same period. Saint Clair County, which had faced a high volume of foreclosures, saw a 13% decrease from Q3 2023 and a substantial 79% drop from Q4 2022, reflecting a positive shift for homeowners in the area. This data, encapsulated in the accompanying table, offers a snapshot of the current market conditions and emerging trends in the St. Louis housing landscape.


  

 

St Louis Metro Area Foreclosure Filings – 4th Quarter 2023

St Louis Metro Area Foreclosure Filings - 4th Quater 2023

© 2024 St Louis Real Estate News – Data Source:  Attom Data Research

Real Estate’s Game Changer: Decoding the Latest Twists in the Sitzer Saga

Since the suit was first filed in 2019, I’ve been following the the Sitzer v. National Association of REALTORS® case closely and sharing my thoughts on the potential impact it could have on the real estate industry, as well as on home buyers and sellers. This task has been far from dull, as the litigation has been filled with action, especially since the Missouri jury’s ruling in favor of the plaintiffs in October. The past week has seen an increase in legal activity from the defendants, making the situation even more intense. Below is a breakdown of the latest events and their implications, from my perspective (bear in mind, I’m not an attorney, just a real estate broker):


Key Motions Filed:

  • National Association of Realtors Seeks a New Trial: This motion contests the fairness of the original trial, highlighting potential procedural and evidentiary errors that might have skewed the jury’s decision.
  • Calls for Judgment as a Matter of Law: Various defendants, including Keller Williams and BHH Affiliates, have challenged the verdict based on the argument that it contradicts the evidence presented. They point to possible legal oversights, such as flawed jury instructions.
  • Questioning the Class Action Status: A notable move by BHH Affiliates and HomeServices of America, this motion disputes the class action’s suitability, arguing that individual differences overshadow commonalities crucial in such lawsuits.

Analyzing the Legal Landscape:

  • The Frequency of Post-Verdict Motions: In complex cases like this, it’s quite typical for defendants to pursue motions for a new trial or a judgment reversal. These legal steps, while common, underscore the high stakes involved, especially in a sector as impactful as real estate.
  • Prospects of These Motions: Historically, the success of such motions varies. They can occasionally lead to new trials or judgment alterations. However, overturning a jury’s decision is often a challenging hill to climb, given the U.S. legal system’s respect for jury findings. These motions are more likely precursors to an appeal.
  • Real Estate Industry at a Crossroads: The decisions on these motions are critical. Their outcomes could prompt significant changes in how real estate transactions are conducted, especially regarding agent commissions and competitive practices.

What Does This Mean for Home Buyers and Sellers?

Now, you might be wondering, “All this legal talk is great, but how does it affect me as a home buyer or seller?” Well, I have some thoughts on that as well:

  • Changes in Commission Structures: The heart of the Sitzer case is about how real estate commissions are handled. Depending on the outcome, we might see a shift in how agents are paid. This could mean more flexibility or different options when it comes to commission rates.
  • Increased Transparency: The case also touches on transparency in real estate transactions. We could be looking at a future where there’s more clarity on how agents operate, which means you, as a buyer or seller, would have a clearer picture of what you’re getting into.
  • Potential for More Competitive Pricing: If the verdict leads to changes in how commissions are structured, this could open the door for more competitive pricing in the real estate market. It could mean better deals for buyers and more options for sellers.

In short, this trial isn’t just about big real estate companies; it’s about potentially changing the playing field for everyone involved in buying or selling a home. It’s about making sure that the process is fair and transparent for you, the consumer. So, stay tuned – the decisions made in this courtroom could be game-changers for how we buy and sell homes.

Compilation of Motions Filed In The Past Week in Sitzer v NAR

(click below to access the document containing all the motions filed)

Compilation of Motions Filed In The Past Week in Sitzer v NAR