According to St. Louis Real Estate News, a significant share of active listings across the region have been on the market for more than 60 days. The cause? Well, it’s complicated. It’s not that we are in a slow market. Rather, it’s a selective market. With more inventory becoming available, buyers are hesitant to purchase something they’re not sure is worth the mortgage payment.
From Kirkwood and Webster Groves to Maplewood and parts of St. Charles, the most desirable homes still move fast in today’s St. Louis real estate market. In fact, it’s not unusual to see multiple offers within the first few days. For many buyers – especially first timers and relocators – that pressure creates a frustrating illusion: either stretch your budget to win or brace yourself to lose again.
Most sellers breathe a sigh of relief after accepting an offer. In a perfect real estate world, that means the home’s status can be switched from active to pending, the buyer’s loan will go through with flying colors, the For Sale sign can be removed, and closing day will be within a month or so.
Whether you’re a new empty nester or you’ve recently retired, you’re likely contemplating the idea of a smaller home. Less square footage typically means less space to take care of, with fewer rooms and a smaller yard (or no yard at all). But is downsizing worth it if it means giving up favorite things about your current house, or having to leave a neighborhood you love?
With budgets already stretched thin along with higher interest rates, today’s buyers are more selective than ever regarding homes they’re willing to purchase. They don’t want to get stuck with a home they’ll need to sink even more money into after closing. In fact, according to a recent report from Zillow, buyers are willing to pay up to 4% more (an average of $13,000 for the average American home) for a move-in-ready listing that doesn’t need renovations or repairs.
In line with many other living expenses, home insurance has been rising over the last several years. According to the Consumer Federation of America, the average annual home insurance premium for a typical homeowner increased by an average of $648 across the country from 2021 to 2024. Home insurance in Missouri increased by an average of 12% during that time span, while Illinois home insurance increased by a whopping 50%.
If you plan on selling your house in 2026, you shouldn’t have much trouble. Affordability is expected to improve as interest rates drop. Inventory, however, is limited, so sellers need to use every available tool to attract buyers and get top dollar. Home staging is one of those tools.
Homeowners who locked into near-3% interest rates during 2020–2021 are now hesitant to sell, because it means buying another property that could require a 6% rate or higher. This “mortgage lock-in effect” is causing many would-be sellers to stay put, which means a smaller housing supply in St. Louis — and fewer options for eager buyers.