Posted by Dawn Griffin
2023 Real Estate Market Review – St. Louis
St. Louis City Real Estate 2023
Welcome to our 2023 year-end real estate market review across three key counties – St. Louis City, St. Louis County, and St. Charles County. As we close the chapter on another eventful year, it’s time to analyze the national trends, challenges, and standout statistics that shaped the housing market locally.
Ten Overall Market Trends in 2023
1. Home prices rose to near-record highs
The U.S. median sale price peaked at $425,000 in June, just below last year’s record high of $433,000. However, when averaging over the entire year, 2023’s average median sale price was higher than any previous year in history, rising from $407,000 in 2022 to $409,000.
2. St. Louis was in the Top Ten Least Expensive Metros to Buy a Home in 2023
Our median sale prices was $246,700 up 3.6% year-over-year.
3. Mortgage rates ballooned beyond 8% for the first time in over 20 years
Higher mortgage rates impacted affordability across the market, straining already sapped budgets. In July, the average monthly mortgage payment reached $2,637 and grew more than twice as fast as wages (12.6% compared to 5.2%).
Importantly, mortgage rates fell noticeably before the end of the year due to inflation easing up, the Fed holding rates steady, and the labor market growing slower than expected.
4. Housing inventory remained well below average
There was an average of 1.015 million homes listed for sale every month in 2023, down 0.1% from last year. Monthly inventory peaked at 1.1 million homes, below 2022’s 1.26 million and far below historical normals.
5. New listings dropped to their lowest level on record
There were just 5.4 million new listings in 2023, the lowest level on record and a massive 16.4% drop from 2022. Average monthly new listings also posted sharp declines, falling from 585,000 in 2022 to 520,000 this year. The St. Louis area fared somewhat better than the national averages
- St. Louis City: -6.5%
- St. Louis County: -7.3%
- St. Charles County: -13.8%
6. Home sales fell more than 18%
Just 4.59 million U.S. homes sold through November, an incredible 18.3% drop from the 5.62 million sold in 2022 during the same period. Year-over-year home sales were negative every month in 2023. However, the declines shrunk from a low of -37.5% in January to just -4.8% in November, showing a promising upward trend leading into 2024.
7. Median days on market soared beyond one month as the market cooled
In 2023, homes spent an average of 37 days on the market, a full ten days more than 2022. We performed better in all counties compared to the national average.
- St. Louis City: 28
- St. Louis County: 26
- St. Charles County: 23
8. 15% of active listings experienced price drops
15.3% of listings experienced price drops in 2023, up from 13.9% in 2022. As affordability worsened and fewer buyers entered the market, more sellers were forced to lower prices. In some markets, sellers also had to offer additional concessions due to very limited demand. In fact nationwide, by November, more than one-third of all home sellers gave concessions – down from the record 45.6% in February but up from 27.6% two years prior.
9. Nearly 33% of homes were purchased with cash in 2023
32.7% of homes were purchased with all cash in 2023, up from 30.7% last year and the highest share in a decade. However, while the share of all-cash purchases continued rising, the number of cash sales fell year over year alongside all other sales metrics.
10.0Bidding wars fell in 2023
51.6% of homes had a bidding war in 2023, down from 54% in 2022. In general, bidding wars have been dropping as mortgage rates have increased. This has been especially pronounced in pandemic boomtowns.
2023 Real Estate Market – St. Louis City
Most Expensive Home Sold in St. Louis City in 2023
The most expensive home sold in St. Louis City in 2023 was 22 Portland Place in the Central West End. The 9,058 square foot home has 7 bedrooms, 5 full baths, and 3 half baths. The kitchen was featured in STL Magazine. This stunner also has a hidden wine room, home gym, arcade, apartment over the carriage house, and gorgeous pool. It listed at $3 million and sold for $2.5 million.
St. Louis City Real Estate Statistics
January-November 2023
- Listings: Down 6.5%
- Closed Sales: Down 16.4%
- Days on Market: Up 7.7%
- Median Sales Price: Up 4.0%
- Inventory: Down 1.2%
2023 Real Estate Market – St. Louis County
Most Expensive Home Sold in St. Louis County in 2023
Ladue was the location for the most expensive home sold in St. Louis county in 2024. 1705 North Woodlawn is an 18,280 square foot French inspired estate on 7.5 acres. It has a main residence, pool complex, private lake, guest housing, tennis courts, and an auto court. The main home boasts 5 bedrooms, 6 full baths, and 4 half baths. It listed at $15 million and sold in February for $13 million.
St. Louis County Real Estate Statistics
January-November 2023
- Listings: Down 7.3%
- Closed Sales: Down 9.4%
- Days on Market: Up 18.2%
- Median Sales Price: Up 0.8%
- Inventory: Down 1.2%
2023 Real Estate Market – St. Charles County
Most Expensive Home Sold in St. Charles County in 2023
12 Upper Whitmoor Drive in Weldon Springs was the most expensive property sold in St. Charles County in 2023. This European-inspired estate home has over 6,156 square foot of living space and includes 6 bedrooms, 7 full baths, and 2 half baths. Atrium staircase and elevator access lower level recreation room with fireplace, game room, gathering bar and 2nd kitchen plus workout room, guest suite, pool bath and wine cellar. Situated on 3.45-acres with veranda, covered patio, firepit, resort style pool with spa and 4+ 2-car garages. The home listed at $23,995,000 and sold in June for $3,725,000.
St. Charles County Real Estate Statistics
January-November 2023
- Listings: Down 13.8%
- Closed Sales: Down 16.1%
- Days on Market: Up 43.8%
- Median Sales Price: Up 3.4%
Summary
Mortgage rates were the big story in 2023, but we are starting to see signs of a shift towards a buyer’s market as pandemic-driven inflation is easing, mortgage rates decline, and more people list their homes for sale. We have hope that these trends continue in the new year, and provide home buyers a break and home sellers more flexibility. Please reach out if you have questions or are ready to tackle your real estate goals in 2024.
