Downtown STL real estate update

Downtown STL real estate update: The number of sales is steadily climbing, days-on-market are steadily dropping, and prices are making some headway. From 2012 to 2017, the number of units sold – condos/ lofts in high rise buildings – has increased from 96 to 124 (30%), time on market has dropped from median 109 days to 57 (48%), and average sale price increased from $164,839 to $180,818 (10%). YTD numbers for 2018 are indicating a higher number of units sold and not coming off the asking price as much, but an increase in days-on-market and a decrease in price. This could be more of the smaller units selling, or sellers getting more anxious as they sit on the market longer.

I ran the same stats for the Central West End condo market, the only other large concentration of condos/ lofts in the city, especially high-rises. Over the same period, # of units sold rose 87%, almost doubling, days on market dropped 76% to 24 days, and prices went up about the same, 10.2%. Overall the St Louis market had another strong first half of 2018, but a softer 2nd half. I will have complete figures next month to compare. At this point, it seems that the city high-rise market, appreciating at roughly 2% a year, is running about half what the rest of the region’s homes are running, at about 4%.

3rd skyline in STL

Looking east from Art Hill in Forest Park, I now realize we have a 3rd skyline in STL. The always popular Central West End has been busy re-building itself the last few years, mostly with health care and residential, plus entrepreneurial Cortex. This view captures the Kingshighway side, with the Chase on the left and BJC on the right. The crane at left middle will be the One Hundred, a strikingly modern 36 floor apartment tower that will reach 75 feet taller than the Chase.

Several of the newer residential towers in the CWE are condos for purchase, including a renovation of the Chase Park Plaza. These high end units mimic Clayton prices, at the top of STL pricing. Downtown has more affordable space, with many renovated lofts in the last 20 years, and a new 29 story apartment tower going up in Ballpark Village.

Feeling a bit more suburban? There are smaller scale developments in Kirkwood, St Charles, and Creve Coeur, among other growing walkable communities. If you have a desire to purchase a piece of the sky, and be in the middle of the action, contact me now to get into some of these units and decide if it is right for you!

Downtown Buzz

With Downtown STL being in the news for crime stats recently, I have had several clients ask me about the impact on real estate and overall appeal.  I have no doubt the crime factor deters many people from visiting more often or staying longer when they do, but it does not appear to be having a significant impact.  Loft sale prices are slowly rising again, and rental rates are moving up faster.  Downtown residency continues to grow, and even though the loft-purchase market is still down from its peak, distress sales are mostly in the past and the rental market has been adding steadily – above the metro average.

I visit the city’s downtown and mid-town areas regularly for business, special events, and the arts.  I see a new energy recently all week long (even with no baseball game!) with more foot traffic, businesses opening, new construction and renovations that show a more vibrant scene at our metro core.  I notice how blocks that have been quiet in recent years now are budding with new activity.  The core area (river to 18th st) contains about 9000 residents and the greater area (out to 26th st, broader north to south) contains 18,000.  Vacancy is around 6%, a low number and right in line with the suburbs.  More businesses are catering to these people living downtown, and hopefully they will help drive the crime rate down too.

Granted, there are many blocks that are not experiencing this renaissance yet, but please take some time this fall and see for yourself the renovations and excitement on the new Arch grounds (VP Fair is returning there in 2018) and Kiener Plaza; the Old Post Office Plaza at Olive and 9th north of Ballpark Village; the National Blues Museum at Washington and 6th by the convention center; the growing theater district on Grand near the Fox; the innovative Cortex district around Ikea; and many neighborhoods north and south that are taking on new life, including north of Downtown West where the new NGA Western HQ is going in.  St Louis University, Washington University, BJC and other institutions large and small are building long-range plans for our central corridor from the river to Clayton, and investing billions of dollars.  This only adds to our highly rated cultural attractions that have been around for decades.

What a fun time to be in St Louis and be a part of this re-growth!  Make sure you participate in one of the many festivals this weekend that are happening around town in this beautiful weather.

Happy outings!

Home Front News

Spring sales have been strong – My business is ahead of last year, and homes are selling at a brisk pace, but do not think they are all selling over list price, that is still the exception.  Certain areas and price ranges have a heavier demand and higher percentage of multiple offers, but many buyers shy away from competing bids, and are waiting for the initial rush to die off after one or two weeks, then revisit.

Mortgage rates have eased down to 4.0% on a 30 yr fixed no points, down from 4.25% a month ago.

The Economist last week wrote “Millennials Really like St Louis“, citing us as the 4th most popular metro for this age group in the country, ahead of Chicago, Seattle and most others. That follows our recognition this year for the nation’s best park, best zoo, and best custard. Young buyer appeal has been evidenced by the strong home sales this spring. Way to go St Louis!!

Condo/villa sales continue to pick up, due to 3 main factors: rising single family prices, walkability access to desirable areas, and increasing desire for simplification and low maintenance lifestyles.

For the sixth consecutive year, Coldwell Banker Gundaker and NRT LLC’s parent company, Realogy, has received the prestigious designation of being named among the World’s Most Ethical Companies.  This award, presented by the Ethisphere® Institute, highlights companies that outperform their industry peers for ethical conduct.  As part of Realogy and the NRT family of companies, Coldwell Banker Gundaker strives to set the standard for ethical conduct in the market.

Happy spring cleaning!

Are Condos Back?

During the recession a few years back, condo values dropped more than single family homes.  Lenders laid more restrictions on condo loans, likely due to higher foreclosure rates.  That, plus single families becoming more affordable, caused the condominium market to lag once the market turned around.  I have noticed a growing third factor that can affect this ownership style – their more restrictive nature.  This cuts both ways and is why some folks prefer condos, but repels others.  The controlling nature of condo rules and regs can bring comfort, security and conformity, but can also feel overbearing and unreasonable.  The closeness of the units can magnify each of those feelings.  Their main attribute of being a low maintenance lifestyle at least helps offset the monthly association fee.

The most common questions I field from condo shoppers are (1) pets, (2) renting, and (3) monthly fees.  (1) Due to the increasing popularity of pet dogs, I expect more associations to allow pets.  Some have even changed their rules recently to accept them.  Most newer developments have size, number, and “vicious” restrictions, but tend to allow dogs and cats.  (2) More people want the flexibility to rent their home out, whether for income, a temporary job transfer, or prices are down when it is time to move.  A recent trend is associations allowing up to 10% of units to be rented.   (3) Condo fees have a habit of rising faster than inflation.  Pools and elevators can add significantly.  I have seen some condos selling for $200,000 with $800/mo fees.  That would add over 50% to your mortgage at today’s rates.  Pay attention to what this fee covers – some are landscaping only; others cover all exterior components and some utilities, even a doorman (the $800 one – we’re movin’ on up).  These changes explain the importance of obtaining all amendments to the original condo indentures, which the seller provides.  One unit I sold had 3 revisions on renting alone.

Given all this, condos are still a popular lifestyle.  Prices are headed back up, and are selling quickly in many areas, so YES, condos are back.  For the traveler, the non-fixers and non-mowers, the security minded, the price conscious, the physically limited, the downtown oriented, the walker-to-everything, and the conformist.  There is a wide variety of factors that will continue to attract buyers to condo developments.  The current demand is higher for the villa style, which has no one above or below you, direct exterior entrance, attached garage typically, and lower monthly fee.  Technically this is a single family, not a condo, it is the crossover of home styles, and I expect this style to continue growing.

Update on Aluminum Wiring article — since writing last month’s message on residential aluminum wiring, I have spoken to the West County EMS fire marshal, who said the more favorable connector for aluminum wiring now is AlumiConn, which is a screw-down block.  They are larger than the purple wire nuts and may not fit in the original box, possibly needing a box extension, but he feels these are safer.

Happy condo hunting!