Year-over-year the number of homes being sold in Missouri is down 15%.
Andrea Sheridan, President of the Missouri Association of Realtors, says that although less homes are being sold, there are still many people who are looking for one. She wants interest rates to stabilize so that more people enter the home buying market.
“So when we have buyers who are hanging on the fence or staying in their home that may not be perfect for them because they have a lower interest rate, we’re not getting that inventory hitting the market for the buyers who are waiting for a house,” said Sheridan. “So, the merry-go round of who goes next has been stunted.”
In addition to the interest rate, she says more people are historically staying in their home longer.
“From July 2023 we were looking at 31 days on the market, but that’s a little bit of a skewed number because it also includes new construction and taking into account the building timeframe,” according to Sheridan. “As we look at the days on the market number in most markets for residential resale properties, we’re looking at 20-ish days.”
The so-called ‘bidding wars’ on homes might be a thing of the past, but homes are routinely seeing several offers. If you want to stick out from the multiple offers on the table, Sheridan says you COULD purchase a home without an inspection, but she also makes clear, it’s not something she would recommend herself.
“There are times where you could say we are willing to do an inspection for our knowledge and if there are unacceptable conditions, we would say we canceled, but we’re not going to ask for any repairs,” Sheridan said. “That kind of lets the seller know that they are not going to beat them up over an inspection.”
Sheridan also says that the days of 3 or 4% interest rates are ‘never returning.’ Interest rates are currently about 8.3% for a 30-year fixed rate mortgage.
Copyright 2023, Missourinet.