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Kirwood MO Real Estate Roundup

May 07, 2009

Latest Podcast -

The latest Podcast is now available online:STL_Skyline

St. Louis Market Overview Real Estate Podcast

"Kevin Cottrell's understanding of the real estate market in St. Louis is second to none.  Any party interested in finding out what's really going on would be well suited to listen to his analysis and advice."


          - Greg Abel, Broker/Owner - Avenue Real Estate Group

During this weeks session- Greg Abel, Kevin Cottrell and Russ Miller review current market trends as well as a general economic discussion and review of current press coverage of the real estate market nationally and how it compares to the Saint Louis marketplace.

Discussion centers around the key market indicators including pending sales, active inventory and how they effect the key market players including Sellers, Buyers, Real Estate Brokers/Offices and agents.  Interesting discussion about how some price ranges are turning to a sellers market with low inventory levels and activity reminiscent of the 2003-2004 market.

Again, the Podcast can be accessed via the following link.

CRG Avenue Podcast

March 10, 2009

Latest Podcast Live - Economic Pearl Harbor & St. Louis MO Real Estate Market Review #stlouis

The latest Podcast is now available online:STL_Skyline

St. Louis Market Overview Real Estate Podcast

"Kevin Cottrell's understanding of the real estate market in St. Louis is second to none.  Any party interested in finding out what's really going on would be well suited to listen to his analysis and advice."


          - Greg Abel, Broker/Owner - Avenue Real Estate Group

During this weeks session- Greg Abel, Kevin Cottrell and Russ Miller review current market trends as well as a general economic discussion and recap of Warren Buffett's position on what needs to be done by Congress and the Obama Administation to turn around the "Economic Pearl Harbor" that the US is facing.

Discussion centers around the key market indicators including pending sales, active inventory and how they effect the key market players including Sellers, Buyers, Real Estate Brokers/Offices and agents.

Again, the Podcast can be accessed via the following link.

CRG Avenue Podcast 

December 18, 2008

St. Louis Real Estate Market Podcast - Week of 12/16/08

Westminster The latest Podcast is now available online:

St. Louis Market Overview Real Estate Podcast


"Kevin Cottrell is my go-to source for the most reliable information on the St. Louis Real Estate Market.  Whether you are a seller, buyer or real estate agent looking for reliable and accurate data or analysis on the market, he's the best source around."

1577 Paradise

          - Russ Miller, Sr. Loan Officer, MetroCities Mortgage

During this weeks session- Greg Abel, Kevin Cottrell and Russ Miller cover the most recent topics in the news - foreclosures, interest rates and the state of the residential real estate market.

Again, the Podcast can be accessed via the following website address.

CRG Avenue Podcast

http://www.realtyminute.com/

December 12, 2008

Weekly Audio Podcast - St. Louis Market Overview

Westminster We are very pleased to announce that we are now producing a weekly Internet Radio show which is available for you to listen or download at the following website:

St. Louis Market Overview Real Estate Podcast


"Kevin Cottrell shares his valuable insights on the St. Louis Real Estate Market in these weekly podcasts -  I find these to be so valuable that I share it with every one in my entire real estate business as well as every one of our clients...It ensures they are up to date on the latest trends in the Saint Louis market."

1577 Paradise

          - Greg Abel, President, Avenue Real Estate Group

During these weekly sessions - we'll be covering key issues facing the residential real estate market in the St. Louis Metro area.  Topics which are very critical to both buyers or sellers will be  covered in detail.

Again, the Podcast can be accessed via the following website address.

CRG Avenue Podcast

http://www.realtyminute.com/

Enjoy

Kevin

October 26, 2008

St. Louis MO Real Estate Total Market Overview - Real Estate Market Update

Cottrell Report – Total Market Overview for Week Ending 10/24/08

Saint Louis

MO

Real Estate Market Update & Overview

 









Current WK

4 Weeks Prior

1 Year Ago

Trend

Active Listings

5,174

5,403

6,049

        +

Pending Ratio

10.9%

12.3%

11.7%

+

Price Reductions

11.2%

9.4%

18.2%

-

Days on Market*

86.4

87.1

69.8

+

List/Selling Price(%)**

95.6%

95.3%

96.9%

=



Cottrell Index (08/07)

109

99

       



Cottrell Index (07/07)

111

86




Cottrell Index (06/07)

108

95


*Weighted Average Days on Market for Listings Sold



**Average List/Sell% for all listings sold in past 6 months



Source: MARIS Data Deemed Reliable but not Guaranteed



Cottrell Index based on year over year analysis of ratio of new listings/listings sold

© 2008 Cottrell Realty Group/Incubation Realty Group LLC  ALL RIGHTS RESERVED










For a copy of this week's Total Market Overview Report - please send and email with TMO Please in the subject to  tmo@cottrellrealty.com

Download crg_list_to_sell_analysis.pdf

“The Saint Louis MO real estate market remained unseasonably slow this past week.  Many listings – including new or reduced priced listings – had NO showings…”

Now - For some good news!

 

Some well priced houses are receiving offers and selling (provided seller’s are motivated and realistic in their pricing expectations)  – we have negotiated 3 contracts in the past 7 days and are working several other offers currently on additional listings.

If you have a listing that has been rejected by the market – few or zero showings or showings and no offers – call us today at 314-779-3600 for a free NO OBLIGATION listing evaluation.

 

 

 206 N. Fillmore_Front_ResizePending Ratio Declines stable again week over week!

The pending ratio declined markedly  to 10.9% from last weeks 13.3%.  This ratio very close to the lowest level of 2007 and we expect the pending ratio to decline further based on seasonal reductions of buyers in the fall and winter in

Saint Louis

MO.

 .

Listing Inventory – You are either priced correctly or not in Saint Louis

As we’ve discussed, over the past 30 to 60 days, available inventory (although considerably lower than the same week in 2007 @ 6,049) has increased dramatically to a level of more than 9 months based on the six month rolling sales number.  We’re continuing to see unseasonably slow showing activity – some listings whether new or just reduced in price (some by significant amounts) with very limited to zero showings.  This is a source of consternation for Saint Louis home sellers. 

We believe this is a continued sign of weakness from the fallout from the lack of consumer confidence resulting from the Wall Street and spreading global financial meltdown. Normally strong areas such as Ballwin, Webster Groves,  Kirkwood MO, Clayton MO, Ladue and University City MO continue to be unseasonably low and off from where they were a few weeks ago. 

Unfortunately, the fact that some sellers are not realistic necessitates aggressive and direct discussions on our part.  We believe in telling the truth – and when seller’s lack the willingness to price correctly – we’d rather terminate the listing and have them understand that they will not in our professional opinion – ever sell at the price they desire (their listing has been ‘rejected’ by the market).  Sometimes, this is a tough pill for sellers to swallow, however, we feel with our broad analysis of the market and pricing expertise, we have a strong handle on what works to get a home sold in this market – we’ve closed more than 80 homes this year. 

Unfortunately, sellers and buyers alike run into the mediocre real estate agent who is either on their way out – or already out of the business – and they hear the mantra of ‘the market is terrible’ or ‘nothing is selling’ or there are ‘no buyers.’  Our advice is simple – when you run into one of these agents who spouts this nonsense – don’t walk – run away and contact a professional agent who has a demonstrable track record of getting homes sold.   Look for a market expert who will tell you the truth.

For sellers – this may not be the price that you want… and you may decide not to sell now and compete with more aggressively priced homes – owned by sellers who have to sell – not ‘want to sell if I can get some target price. 

“A huge number of Saint Louis MO home sellers reduced their prices in the past 7 days – more than 500 price reductions -represents a reduction by almost 1 in every 12 listings! …”

Price Reductions continue at record levels

There are more active listings available in many submarkets in

St. Louis

, than buyers who will purchase in a reasonable timeframe. Relative pending ratios for these submarkets are well below 10%.  In these specific areas, even significant price reductions have been met with limited to no new showings.  These areas are definitely targets for sellers to consider Lease/Purchases – something we’ve 4128Lindbergh_Front_Resized  developed as a successful aggressive strategy to re-position a listing to compete with a large number of available properties.  Seller’s in some Saint Louis areas may get one and only one shot at selling their house or condo.  A seller of a condo in Clayton MO or a house in

Fenton

 who receives an offer – however structured – should carefully weigh whether this is the only and best offer they will receive.  We’ve worked with many a disappointed seller – who disregarded the advice from their seasoned agent that ‘this is likely the best offer – and likely the only offer given current market conditions that you will see.”  Smart sellers are getting aggressive and respond without judgment or ego to offers – regardless of how low the initial offering price is.

“With the stock market meltdown, many smart investors and home buyers are realizing that at no time has the

St. Louis

 real estate market ever subjected their invested capital to the extreme risk that the stock market does.  When was the last time you saw a house price decline by 7% in a day in

Saint Louis

?  - NEVER“

Significant Opportunity for

Saint Louis

 for homebuyers!

The shift in the real estate market in

Saint Louis

provides a significant opportunity for home buyers.  With the stock market meltdown, many smart investors and home buyers are realizing that at no time has the

St. Louis


 real estate market ever subjected their invested capital to the extreme risk that the stock market does.  When was the last time you saw a house price decline by 7% in a day in

Saint Louis

?  NEVER 

We have received a record number of calls from buyers and investors looking to move capital into real estate using self directed IRAs.  Be ware – your friendly investment advisor at Edward Jones, AG Edwards, etc will tell you that you can NOT do this.  This is not accurate.  Smart buyers are already converting their IRAs and investment accounts to self-directed accounts and looking to move in to a more stable investment asset of real estate in 

St. Louis.

Call us today at 314-779-3690 for more details and a referral to a company that can assist with self-directed IRAs.

As we discussed previously, as a home buyer looking in St. Louis MO, you need a market expert buyer agent who can assist with the selection of homes that represent the best value and when you find the best home in Saint Louis MO, provide the critical analysis for potential purchases (is the home priced in such a manner where it represents a significant value, has it had price a price reduction(s) – when, by how much? What do the comparable sales indicate?  These are all key things that a professional buyer specialist can provide – Just make sure your agent is a market expert!

"Based on the trend we discussed last week the current window of opportunity for home buyers in

Saint Louis

…could close between late fall and spring."

Weighted Average Days on Market remains above  80! 

Again, this measure which applies a weighting by relative activity per price range and is the aggregate measure of six whole months sales activity had been rising steadily since late fall. 

553Ridge_Front_Resized We will continue to watch this measure carefully along with the overall list to sell ratio for pricing which has remained below 96% since December 2007.  It is important to note that the list to sales ratio is considerably lower than the 97.4% seen two years ago in

St. Louis

  Both indicators show activity as well as aggressive offers being accepted from the relatively smaller pool of buyers who are active in the marketplace.   For reference, the national list/sell ratio is below 90% and in some cases – markets with significant foreclosure and bank owned inventory – way below this number.

Readers should note that both the List to Sale Ratio and the Weighted Average Days on Market are lagging indicators of market condition – they contain a rolling 6 months of data – and as such will not be the first indicator of market correction.  The pending ratio (see above) is the leading indicator and as such will show the first and strongest sign of a shift in the market. Unfortunately, the local and national press focus on other indicators that are either plainly inaccurate or lag (imagine days on market declining for 30 weeks – when pending ratio reversed trend for more than 6 of those weeks) the market in terms of shifts.

Based on this fact, the press and most real estate agents and brokers normally watching the days on market would believe that the market is improving (days on market have been declining).  However, the number of buyers under contract (pending ratio) has declined significantly (by over 24%) in the past month.  We’ll be watching this carefully for any continued degradation in the pending ratio.

Note:  Complete definitions of all terms for the Cottrell Report are found here.

Kevin Cottrell /Cottrell Realty Group in Saint Louis MO

August 07, 2008

Real Estate is a Local Market - St. Louis is Doing Much Better than the National Average

Saying the real estate market is in bad shape across the nation is about as accurate as stating that the weather is the same from coast to coast - e.g the "national average temperature is 72 degrees."

That's the message of Kevin Cottrell and Stephanie Combs of the Cottrell Realty Group in Sunset Hills, Mo., a Keller Williams Realty company. They are spreading the word that while some cities are experiencing serious fallout from the subprime mortgage debacle and other market factors, the St. Louis residential real estate scene is actually continuing on a pretty healthy track.

St_louis_metro_supply At a June 2008 "Terrific Thursday" seminar for real estate professionals, held at the Lodge of Des Peres in St. Louis, Cottrell made the point that real estate trends are always shifting, and markets that take a downswing won't stay down forever. Cottrell, a certified national real estate trainer, made the point that in some cities such as Las Vegas and San Diego, only about 10 or 20 percent of the population can afford the area's median home price. But in St. Louis, about 80 percent can.

At the same time, St. Louis has not been subject to the rapid home price appreciation-deflation process that's been seen in states like California and Nevada, according to Cottrell. "Local areas that have the greatest and fastest appreciation will deal with the most dramatic downshifts," he said. He made the point that in St. Louis, the median home sales price has been on a steady, healthy upward 2027_dardenne_valley trend since 1970, with a balanced market expected for the region by 2009 or 2010 – and no sign of the dramatic price inflation seen on the west coast.

According to data from OFHEO (the Office of Federal Housing Enterprise Oversight), states such as California, Arizona, Florida and Nevada actually showed negative price appreciation from the first quarter of 2007 to the first quarter of 2008. But the state of Missouri saw an appreciation of 1.7 percent over that period, and for the St. Louis region, that figure was even higher at 1.76 percent.

Cottrell made the point that in the St. Louis area, the $175,000 to $199,000 price segment is doing especially well, and that portion of the market is seeing the same numbers of buyers now that it did last year.

So media reports of weakness in the St. Louis home sales market don't seem to be built on a very solid foundation, according to Combs and Cottrell. Pricing appreciation should continue at a normal pace, and purchasers should realize now is a good time to buy, they say – especially with good Federal Housing Administration loans available to a wider range of Americans than the public tends to perceive.

"The law of supply and demand has not been repealed," Cottrell said. "Agents in this area should be adding as many listings as possible right now - And Seller's who think this is a poor time to sell would be well suited to hire a real estate agent who is a market expert and get priced right."

Julia M. Johnson, Freelance Writer & Contributor

St. Louis Business Journal

September 20, 2007

Lewis Homes provides some additional Facts about 409 Argonne - Kirkwood MO

“Residents of Kirkwood need to remember that prospective Buyers are attracted to the charm and character of the area – not only in its homes, but in its awesome residents…It would be a shame to scare them off or diminish the attractiveness of Kirkwood in the name of historical preservation (which is a desirable and noble goal)…”

Lewis Homes is a small family owned custom homebuilder in the Kirkwood Community. Lewis Homes bought the property from Capstone Realty for the purpose of building a new home. The price they paid was reflective of the value of the property, not the structure thereon. In fact, the home had multiple significant structural and water issues. The City of Kirkwood documented more than 25 issues in the City’s Property Maintenance Inspection Report. The City’s report, which is required to gain occupancy, states, in part, that: “[The potential buyer would have been required to get] A signed and sealed Missouri structural engineer’s report on the condition of the bowed and cracked foundation walls and the dormer on the garage, and make necessary repairs.” “In conjunction with [the] above listed engineer’s report, submit verification from a Missouri licensed soils engineer—the condition of what appears to be plastic soil expansion under the structural column to the west of the basement stairs. This column appears to have raised the main beam of the house causing the first and second floor structure to bow up into the center of the building; report must address remediation of this condition.”

Factual Timeline:

April 2007: Lewis Homes agreed to purchase the property after determining that it was NOT designated as a historic home on the National Register in the State of Missouri. At that time, Lewis Homes began preparing plans for the building of the new home and advertised their intentions to rebuild a new home in flyers throughout the Kirkwood area.

July 28, 2007: More than three months later, Tad Skelton, an East Argonne Resident, offered to purchase the home for $345,000 by email. The email contained no expression of concern for the preservation of the home, nor was there any indication for the reasons for purchase. The correspondence, in its entirety, stated the following: “Mary Lewis Realty, I am interested in purchasing the existing home at 407 E Argonne in Kirkwood. I am a cash buyer, could close as soon as the paperwork allows, and am offering $345,000. I am currently out of town and don’t have phone service, but have occasional email access. Please let me know your interest in this transaction. Regards, Tad Skelton” That same day, Lewis Homes responded to Mr. Skelton stating that the home was purchased for the purpose of building a new home and was essentially not for sale. However, Lewis Homes went on to state that the home was in a state of serious structural disrepair, but if someone wished to buy the property, Lewis Homes would sell it at a price that would include its costs and some projected profit in the mid $400’s. At that time, Lewis Homes' project investment that would need to be recovered at sale was about $400,000.

August 3, 2007: Lewis Homes’ Real Estate Agent, Tina Niemann received a letter from Dr. Scott Purvines, another resident of E. Argonne. The neighbor’s letter contained gross inaccuracies regarding Lewis Homes' acquisition of the property. The letter further stated “We are planning to resist the demolition and sale of that property by any legal means available to us unless Lewis Contracting [Homes] changes its plans or sells the house to one of us.” The letter concluded by saying, “We respect you [Ms. Niemann] as a member of our community and like you as an individual. We don’t want you to get caught in the crossfire or be a victim of the bad publicity we hope to generate.” On the afternoon of August 3rd, Ms. Niemann met with Dr. Scott Purvines & his wife to respond to his letter. Lewis Homes, through Ms. Niemann, attempted to set up a meeting with the neighbors for the next day to provide accurate information and discuss the neighbors’ concerns. However, late Friday August 3rd and early Saturday August 4th, many neighbors posted signs in their yards stating “Please do not buy 407 E. Argonne” and at least some neighbors provided misinformation to passersby that the signs had been posted because Lewis Homes had misinformed the former owner, Ms. Ballard, that Lewis Homes would rehab the property.

Saturday August 4, 2007: Lewis Homes again requested a meeting with the residents. Tina Niemann called the Purvines at their home to attempt to organize an informational meeting between Lewis Homes and the residents. The residents refused to remove the signs and requested the meeting be delayed until Sunday and eventually Monday to include attendance by particular residents.

Monday August 6, 2007: When Mr. Skelton was available, many of the residents finally met in an informal meeting at the Hautly residence. Lewis Homes attempted to provide accurate information about the purchase of the home and asked that the neighbors remove the signs. Lewis Homes believes the signs were prepared for the specific purpose of damaging a hard earned reputation of excellence and impairing the ability to operate its business. On the way out of the meeting, Mr. Skelton stopped Tina Niemann to make another verbal offer to purchase the home. It was explained that the offer was below Lewis Homes costs and expenses in the project. However, Ms. Neimann told the neighbors if they were serious, they should submit a formal written contract, which met Lewis Homes costs. Ms. Niemann reported to Lewis Homes, “that the neighbors’ primary concerns voiced to her were the loss of tax credits on the north side of Argonne.”

Week of August 6-12: In the meantime, the neighbors contacted Fox 2 News, and other news sources. The day following the initial Fox 2 report, Lewis Homes restated its intentions to build a new home. However, while Lewis Homes did not want to undertake the rehab of this house, as a courtesy to its Kirkwood Neighbors, it offered the opportunity to the neighbors and all rehabbers to purchase the property in “as is” condition for the purpose of rehab.

August 12-20th: Over the next week and a half, Lewis Homes had approximately 20-30 rehabbers come through the home discussing the possibility of rehabbing or relocating the home. Lewis Homes made clear the significant structural issues to each interested party. Of the 20-30 parties, Lewis Homes received three formal written contracts ranging from $360,000-$380,000. As written, the highest offer of $380,000, which was $30,000 less than Lewis Homes expenses, was contingent upon building and structural inspections. Lewis Homes responded to that party stating that the sale had to be “as is” again citing the structural issues. There was never an oral or written contractual offer for $400,000. At the same time written offers came in, Lewis Homes indicated that it would accept an offer to purchase the home for $410,000, which represented its increasing costs and expenses in the property. That figure included no profit.

August 20, 2007: Lewis Homes’ counsel sent a letter to a representative of the neighbors extending the same offer to purchase the home for $410,000 that was extended to all parties who submitted written contracts. The letter indicated that Lewis Homes was moving forward with construction and time was of the essence. The representative indicated he would forward the offer to the interested neighbors.

As of August 27, 2007: Lewis Homes received no offers to purchase the home for its stated costs.

August 29, 2007: Lewis Homes continued with its planned removal approved by and in compliance with all the rules and regulations of the City of Kirkwood. Lewis Homes is a custom homebuilder. We purchased the property to build a new home. We believe that we did 407_argonne_demolisheverything in our power to allow the residents and/or any other interested person the opportunity to preserve the home. Lewis Homes values the history and tradition of Kirkwood. The City of Kirkwood Landmark Commission honored Lewis Homes with the “Best Residential Infill” of 2006. The award states that Lewis Homes built: “New single family housing which fits comfortably into the existing character of its neighborhood. Like a good addition, this good neighbor found compatibility through use of scale, proportion, materials, textures and details.” A variation of that design will be built on 407 E. Argonne with our customary attention to quality and detail. Lewis Homes believes that the new residence on East Argonne will fit the architecture, character, and history of the homes on East Argonne and within the Kirkwood Community. The owner of Lewis Homes is a Kirkwood Resident who values the community and his reputation for preservation of Kirkwood’s history and character in his work. It was important to the company that the proper factual timeline and events were accurately depicted to its Kirkwood neighbors so that the residents would be able to draw accurate and informed conclusions. Thank you for the opportunity to present the facts to our Kirkwood neighbors. Sincerely, Your Neighbor Lewis Homes

Cottrell Realty Group would like to thank Mike Lewis of Lewis Homes and Mary Lewis for their contribution of this very detailed timeline and facts.

We share the common opinion that Historical Preservation is a very noble and necessary goal for Kirkwood MO.  That said, residents of Kirkwood MO should be cautious not to scare off prospective buyers (and as a result possibly inadvertently diminish property values).  We’re already dealing with buyer’s looking in Kirkwood (some of which are in from out of town) who are puzzled or concerned about the protests, red signs and controversy.  – Resident would be well suited to work within the framework of the municipality – as residents of Webster Groves MO have for quite some time – and if the protections provided for architectural review are not adequate to ensure historical preservation – then the residents should ensure that the City of Kirkwood amends and/or augments their review procedures.  The Mayor and City Council are only a phone call or meeting away. 

A second thing that residents of Kirkwood MO should remember, the ultimate buyer of 407 E. Argonne, should not be ostracized or otherwise harmed.  The buyer of this home deserves the right to enjoy the awesome charm and character and environment that Kirkwood MO brings to all of its residents. 

Saint Louis MO Homeowners big winners from Fed Rate Cut!

“Saint Louis MO Homeowners with open balances will benefit from the rate drop yesterday because…”

Fed_press_release

As we discussed in our previous post yesterday, the Fed Funds Rate was reduced by 0.50%.  While a rate decrease was widely expected by Wall Street and Saint Louis MO market participants, the 50 basis point movement definitely was a welcome surprise and caught most off-guard.

While real estate mortgage rates declined in the wake of the announcement, the real beneficiaries of the rate cut are Saint Louis MO homeowners with open home equity lines of credit and credit card debt.  And according to recent statistics, this is a broad percentage of homeowners in most markets including St. Louis MO.

Saint Louis MO Homeowners with open balances will benefit from the rate drop yesterday because interest rates on Home Equity Lines of Credit (HELOCs) and credit cards are based on Prime Rate which is tied to the Federal Reserve’s Fed Funds Rate.

In reviewing the graphic above -- as explained by The Wall Street Journal -- the Federal Reserve expressed concern about a more broadly based economic downturn.  The release also identifies the fact that the much more aggressive 0.5% reduction is designed to prevent the economy from continue to weaken.

Source of Information Courtesy of
Parsing the Fed Statement
Wall Street Journal

Keller Williams Realty
http://www.cottrellrealty.com

September 19, 2007

Foreclosure Rate up over 100% year over year - What does this mean for the Saint Louis MO Real Estate Market?

“Foreclosures and REOs are a significant issue for some sub-markets of Saint Louis MO – depressing prices and a source of excessive inventory”

Even the hot summer sales period – traditional the strongest in the US - brought limited relief from soaring foreclosures. RealtyTrac’s latest survey – which tracks foreclosures nationwide – says that the number of properties in default has jumped 36 percent for August over July 2007.

Price_reduced_2  More concerning, however, is the fact that delinquencies and defaults by homeowners in the United States have more than doubled from 2006 to 2007 to 243,947, according to August figures released yesterday. The current forecast is for total foreclosures, including default filings to exceed 2 million for 2007.

According to James Saccacio in the statement released on Tuesday, "The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now,"

According to mortgage tracking data, October 2007 is believed to be the largest month in 2007 for hybrid adjustable rate mortgages (ARMs) to reset.  Why is this important to Saint Louis MO real estate owners and home buyers?  With interest rates on more than $50 billion worth of loans ready to adjust up dramatically, some sub-markets in Saint Louis MO may see increased inventory for sale as distressed homeowners (or banks ultimately) place properties for sale. 

This increase in distressed inventory has already shown up in areas such as Benton Park, North County and areas near Tower Grove in St. Louis MO.  Using RealtyTrac’s flyover mapping feature, what becomes dramatic clear is the significant number of properties in default and owned by banks – the tool asks the user to scroll in (zoom in to show a much smaller area) as “there are too many properties to display”.  The bottom line, for a homeIowa_cropped  seller or home buyer in Saint Louis MO – the counsel of an experienced agent is critical.  Property values can become depressed with short sales by distressed homeowners and excessive inventory owned by banks looking to liquidate property at wholesale levels.

This is a localized issue (sometimes block by block in areas of the city of St. Louis) and different for areas like Clayton MO, Webster Groves or University City MO than in Fenton MO, Eureka MO or Hazelwood.  Please contact your Cottrell Realty Group buyer specialist and ask them to discuss what RealtyTrac shows for the area(s) you are evaluating.

Saccacio also highlights an additional concerning fact – a larger percentage of the delinquent properties are ending up back with banks or lenders.  These are held by banks and lenders under the accounting designation of REO (real estate owned) properties. This reinforces the fact that for some home sellers in Saint Louis MO – even distressed home owners – have been unable (or unwilling) to sell their homes. 

When St. Louis homeowners fall behind on their mortgage, their homes are frequently sold before the actual foreclosure and bank or lender takes the property back.  Most frequently, this sale occurs via a ‘short sale’ where the homeowner works with the bank or lender to take less than the full amount (a ‘short’ amount) of the loan balance.  Often, this is a challenging negotiation.  NOTE: If you’re behind on your mortgage and need assistance with a short sale, please call us today to discuss your options.  HUD’s website also offers tips on what to do if you are behind.

Even if a distressed homeowner in Saint Louis MO goes to the next step in the default process – the property auction – the home or condo may not receive bids in amounts high enough for 2110crysal the lender to accept.  If that is the case, then the property is transferred to the lenders as a REO property.  Once the lender has processed the property internally, it is normally re-marketed and placed on the market.  As we mentioned previously, Saint Louis MO home sellers and home buyers need to understand their immediate area’s inventory of REO and defaulted homes.  Contact us today and we’ll provide the data for any areas in St. Louis MO.

September 12, 2007

Keller Williams Realty Announces Luxury Homes Program - Opens doors to the high-end market in Saint Louis MO

“This is a key component that our high end clients in the greater Saint Louis MO area are looking for…”

LuxuryhomesAt Mega Camp 2007, Cottrell Realty Group leadership - affiliated with Keller Williams Realty  Southwest in St. Louis MO and other attendees got a sneak peek in one of Keller Williams Realty’s newest ventures — Luxury Homes by Keller Williams. This program, being rolled out nationally this fall, including in Saint Louis MO, is a program devoted to raising the bar for service in the luxury home market.

Luxury Homes by Keller Williams is a members-only membership program that provides eligible Keller Williams Realty associates with the coveted Luxury Homes designation – one that singles them out as experts in the upper-end market for luxury real estate in St. Louis MO.

As part of becoming eligible, members of the Keller Williams Realty Luxury Homes program will also receive the coveted Institute for Luxury Home Marketing’s certification.

“It puts Keller Williams Realty agents in the Luxury Group in St. Louis on an even higher scale when compared with the national designation programs offered by other national real estate brands…”

The Keller Williams Realty Luxury Homes program makes its debut October 2007.  Members of the Luxury Homes group will take advantage of professionally-developed and designed-to-impress branding and marketing materials.  In addition, discounted pricing for advertisingSeal_clhms  placed in the prestigious print publications Robb Report, The Wall Street Journal and The New York Times will be available. Keller Williams Realty Luxury Group Members will also have access to an exclusive Luxury Homes Website and an international high-end referral network.

“This is a key component that our high end clients in the greater Saint Louis MO area are looking for…It puts Keller Williams Realty agents in the Luxury Group in St. Louis on an even higher scale when compared with the national designation programs offered by other national real estate brands” according to Cottrell Realty’s Director, Luxury Homes Group, Michelle Jordan.

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