In St. Louis county, during the past 6 months, 3072 homes were sold.  During that same period of time, 3694 homes expired out of the Multiple Listing Service (MLS) without a successful sale.  Most St. Louis real estate listings do not sell.

Marketing exposure contributes to this lack of success.  But I believe the most significant reason that homes do not sell is pricing.  You see, by virtue of the fact that they are included in the MLS, they are getting a great deal of exposure.  All real estate agents have access to the listing.  And remember that most buyers find a house through a Realtor.

But Buyers and their Realtors typically do not look at overpriced listings.  And if they do, they usually do not make realistic offers if they have to suffer the stress of “low-balling” the seller.  I talk to sellers everyday who say, “Let’s start the listing high and see what happens.”  What happens 99 out of 100 times is that the house gets no showings.  By the time we get realistic with the price, the “Days on Market” make the house look like it must have some defect.

St. Louis, and the rest of the country, has been experiencing a real estate recession.  The best way to combat this crisis is to work with a Realtor who know how to price homes.  You must have a Realtor who researches prices every day and knows how to apply them to your situation.  For more information, please visit http://www.RussellNolting.com.

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via Median Price for Single Family Properties in BALLWIN, MO 63011.

Front of 217 Glen Cove Drive in Chesterfield

JUST LISTED in Chesterfield — popular Westbury Manor. This home is not in MLS. Seller is listed with Nolting Real Estate but is not cooperating with outside agents! Please call Russell at 314.267.2636 for details about this 5 bedroom (3 main floor, 2 in LL/big windows). Hardwood floors, protected by carpets, look great where visible. Three bedrooms and two full baths on main floor. New tile in baths. Kitchen has been opened up and now features stainless appliances — brand new. Large living room/dining room combination as you enter this home. Anderson wood windows are older but very high quality. Brick four sides with enclosed soffits. Lower level is finished and has 2 large bedrooms with full windows, and a large rec room with door to nice patio. Also another full bath. Furnace, hot water heater, AC, and roof are new!! Call Russell for more details and disclosure statement.  You can also visit this Westbury Manor ranch on my website.

We.ve seen a solid increase in St. Louis real estate sales this year.   Lawrence Yun, chief economist of the National Association of Realtors is predicting a 20% increase in home sales for the first half of 2010.  We can count on 2.6 million home purhcasers taking advantage of the credit.  Yun admits that his prediction is assuming that we will continue to see historically low interest rates of around 5.0 to 5.5% — for today’s rates contact my mortgage partner Matt Eversgerd of Stifel Bank at 314-620-7227.

Currently, the Fed plans to end its purchase of Mortgage Backed Securities.  We will see rates rise on this action.  But we shouldn’t see rates go through the roof — they will likely land in the high 5s.  The rate change from today’s 4.875 for 30 year fixed rate money to the likely 5.875% we will see in 2010, means that every $100,000 that you borrow will cost you an additional $60 per month.

For example, a $250,000 loan today has a principal and interest payment of $1324. If rates increase a full percentage point, as expected by mid-2010, that same loan amount will cost you $1480.

I’m optimistic about 2010.  Throughout this past year the St. Louis real estate market has had it’s ups and downs, but my sense is that our outlook is better than it was a year ago.

One of the reasons for my optimism…. During 2008 and 2009, while the overall St. Louis transaction volume sank by 30%, mine went up.  I’ve sold 80 homes during the 08/09 decline.  So, Nolting Real Estate is doing something right for St. Louis real estate buyers and sellers.  Check us out.

The President has approved an extended and expanded tax credit for home buyers

The 2009 housing tax credit applied to first time home buyers only.  The new tax credit has expanded to include repeat home buyers — you may be eligible.  St. Louis real estate is turning around as a result of this tax credit.

**To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
**The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
**The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
**The tax credit applies only to homes priced at $800,000 or less.
**The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
**Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Real estate appears to be stabilizing across the Country

A recent report shows improvement in real estate across the country.  St. Louis real estate seems to be leveling as well. The well known S&P/Case-Schiller index shows that the 10 city index and the 20 city index a marked improvement in real estate in the majority of cities that it tracks. What the reports displays are small improvements or minimal devaluation in home values. Home values are up anywhere from .1% to 3.4% in ten cities. In other areas real estate values have remained flat and in harder hit areas home values are decreasing at significantly lower rates.

While the news is certainly not staggering it is encouraging because it indicates that real estate markets across the Country and right here, in St. Louis, are leveling out. Home values are falling less sharply and people are being drawn back into the real estate market. It is no surprise what is stimulating the market. Low home values, low interest rates and the First Time Home Buyer Tax Credit have combined to create an ideal buyer’s market.

For more information on the latest info click here for a report from Yahoo real estate.

With a 98 to 0 vote, the senate voted to extend the first time homebuyer tax credit yesterday.  Moreover, the vote also calls for an expansion of the credit to current homeowners.

The details:

The current first time homebuyer tax credit is set to expire November 30, 2009.  This means that a closing must take place by this date.  In other words, the current credit is over.  Today’s the 5th of November.  With Thanksgiving just around the corner, it would be hard to put a home under contract today and confidently expect it to close before December.  It can be done, but it’s not a guarantee.

The extension calls for a credit to be given for all contracts written by April 30, 2010 and closed by June 30, 2010.  I’m not sure how that will be monitored if it goes in to effect.  In other words, I’m not sure how you could stop a buyer from back-dating a contract — we’ll just have to see.

Regarding expansion, the new credit — if passed — would allow existing home owners who have lived in their current home for 5 years or more to take a $6500 credit if they buy a new home.

Also, the Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

Government spending is up.  Inflation will follow.  Where should you invest your money today?

CNBC.com reports that real estate is an excellent investment in this economic climate.  Values are down, inventory is high, deals are out there.

Inflation will make your investment appreciate faster!  That coupled with historically low interest rates points to a pretty safe investment.  Real Property, Real Returns – Winterizing Your Portfolio 2009 – Special Report – CNBC.com.

If you are considering an investment property in St. Louis, check out my St. Louis Home Buyer’s Search site.  There you will find everything on the market in the area.

If you’re interested in buying a St. Louis foreclosure property, give me a call and I’ll email you an updated list of available properties.

HUD Hints on Home Buyer Tax Credit – Realty Check with Diana Olick – CNBC.com.

“I am also aware of the strong support in Congress for doing more to support the housing market, including extending the First Time Home Buyer Tax Credit beyond 2009. At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits. I can assure you the Administration will work with Congress to fashion appropriate and effective home buyer incentives, mindful of both their benefits to stimulating new demand and their costs to the American taxpayer.”

Does concern over the deficit and expense of the First Time Home Buyer tax credit mean that we are going to lose this credit.  St. Louis home buyers need the credit.  But at what expense?