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Wednesday, December 16, 2015

St. Louis Real Estate Market Predictions for 2016


It seems that St. Louis is getting a lot of national attention currently due to the predictions in our housing market. While some big cities are facing potential stagnation and decline, the St. Louis market is heating up.

The CNN Money Real Estate Special Report article The 10Hottest Housing Markets for 2016 puts St. Louis as the 2nd hottest market. It goes on to state, “Home sales are forecast to rise nearly 9% next year in St. Louis thanks to strong employment and median wage growth.”

Apparently St. Louis has been experiencing an influx of tech jobs over the past several years. In fact, according to research from TEKsystems, an IT consulting firm in St. Louis, more than 25,000 IT jobs opened in St. Louis over the past year.
A recent St. Louis Business Journal article shows this trend is slowing, but there will still be gains in the tech industry in 2016 adding jobs and transferees to the St. Louis area.

Earlier this month Realtor.com published The Top 10 Real Estate Markets to Watch in 2016. Chief economist at Realtor.com, Jonathan Smoke, and his team used past trends and seasonal variations of housing and economic data for the 100 largest markets in the country and put them into a statistical model that predicts future values for home sales and prices. When they identified the markets whose forecasted growth was equal to or better than the U.S. average, St. Louis appeared 2nd on the list.

This fall Crestwood, Missouri appeared in Realtor.com’s article The Hottest of the Hot: What Are the Top 10 ZIP Codes in America?  It states, “Homes in these top 10 communities sell four to nine times faster than the national average… Their listings on Realtor.com are viewed three to eight times more often than overall U.S. listings.” Why Crestwood? Well it appears a combination of affordable homes and good-quality schools propelled Crestwood to No. 7 on this list.

So if you are considering buying a new home, you should take advantage of prices before the St. Louis market really gets hot. Is moving on your mind? Contact The Boehmer Team today or visit www.TheBoehmerTeam.com.


Wednesday, December 9, 2015

Home Renovations That Pay Back

Whether you’re putting your home up for sale or planning to live in it for the foreseeable future, you may be considering home renovations. When the time comes to sell, it will be valuable to know the home renovations that pay off and those that don’t.  Also, knowing which home renovations pay back may help you make better decisions on which renovations you choose to make now.

Earlier this year Remodeling Magazine came out with their 2015 COST VS VALUE REPORT. This annual report is highly regarded and referred to throughout the remodeling industry. They’ve put this information online in a format that can be sorted so that you can make best use of the information.

The Cost Vs Value Report compares average cost for 36 popular remodeling projects with the value those projects retain at resale in 102 U.S. markets.
Snapshot of the 2015 Cost Vs Value Report


As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale.

In the article 2015 Remodeling Cost vs. Value: Less Is More, Stacey Moncrief of Realtor.org writes, “Simpler, lower-cost projects tend to return greater value.”  

For example, steel door replacement is the least expensive item on remodeling cost vs. value list yet offers the most payback. Other projects expected to top near 100 percent payback include: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel.  

The headline of an article written by Jim Gallagher at StLToday.com sums it up, Remodeling: The payback is in happiness, not home value.

He writes, “In a new study of 36 types of home improvements, only two raised the value of a St. Louis home by as much as the job cost. A mid-range kitchen remodel would just barely pay for itself. So will replacing windows with mid-priced wooden ones. Every other job was a money loser.”

While you need to resist the urge to over-renovate, if you do, you should prepare yourself to not take it personally when you don’t get out of a project what you put into it. Although you put your heart and soul into designing it, your dream master suite addition may fail to add a big boost to your home’s appeal. Ultimately, you should be happy in your home. If you make a major renovation that is highly customized to you, enjoy it. It might just take a little longer to find the perfect buyer who will love those same customizations. 

Want to purchase a home that doesn’t need any renovations? Or do you need help selling a home that could use renovations? Contact The Boehmer Team. Our real estate expertise and resources for contractors and handymen will help.  

Update: The day this blog was published the National Association of Realtors released their own 2015 Remodeling Impact Report. You can click the link to the 49 page report. We found that the data is similar to the Cost Vs. Value Report referred to above but thought we should share this newly available information.