St. Louis City Real Estate Market: Insider Guide to Pricing and Trends

St. Louis, a city rich in history and architectural charm, has been experiencing notable shifts in its real estate market as we approach the end of 2024. Understanding these trends is essential for buyers and sellers, particularly in the city’s prominent neighborhoods and nearby communities.

As of November 2024, the St. Louis housing market features declining sales and rising prices. Single-family residential home sales decreased by 17.8% year-over-year, totaling 1,163 homes sold. Townhouse and condo sales experienced a similar drop of 18.9%, with 180 units sold. Despite this slowdown in sales, median home prices have continued to climb. The median sales price for single-family homes reached $282,000, marking a 12.2% increase from 2023, while townhouses and condos saw nominal growth of 1.3%.

For homes in the St. Louis luxury segment, those priced $500,000 and above, it was a similar, yet less dramatic story. Overall sales decreased year over year by 6%, while prices rose by 5%, from $655,000 in November 2023 to $685,000 at the end of November 2024.

Several key factors have been influencing the St. Louis real estate market:

Low inventory has characterized the market, contributing to upward pressure on prices. This scarcity has been particularly evident in desirable neighborhoods, where demand continues to outpace supply.

Fluctuations in mortgage rates have impacted buyer affordability and purchasing decisions. While rates have remained relatively low, potential increases could cool buyer enthusiasm and affect market dynamics.

St. Louis’s stable economy, bolstered by healthcare, education, and finance sectors, has provided a solid foundation for the housing market. Job growth and economic development initiatives have further supported real estate demand.

St. Louis has gained national attention for its luxury real estate market. Earlier in 2024, the city landed in the top 3 of the Wall Street Journal list of the hottest luxury markets in the U.S., usurping several other notable cities. A year prior, it found its way atop the WSJ/Realtor.com Luxury Index. This surge is attributed to affluent buyers seeking urban-suburban living with attainable prices, raising the profile of several of the area's high-end neighborhoods in and around the city.

Many of Greater St. Louis' most sought-after luxury communities are situated just beyond the city's western boundary. And there's hardly a wrong choice among the group. Instead, these areas cater to very specific wants and lifestyles and, in recent years, have earned St. Louis a reputation as one of the Midwest's best luxury destinations.

From the tree-lined streets of Webster Groves to the historic charm of Kirkwood, these suburban enclaves are renowned for their historic homes and vibrant community life. The real estate market here has remained robust, with properties often selling quickly due to high demand from families seeking quality schools and a suburban lifestyle.

The smaller communities of Glendale and Warson Woods, situated between Webster Groves to the east and Kirkwood to the west, offer a quaint, small-town feel near urban amenities. The housing market in these areas has seen steady appreciation, with limited inventory contributing to competitive bidding situations.

An affluent community known for its luxurious estates and private ambiance, Ladue offers some of the most prestigious real estate in the St. Louis area. The market is dominated by high-end properties, often situated on expansive lots with mature landscaping. Ladue’s upscale shopping, dining options, and top-tier schools make it a premier residential area.

Town & Country features grand homes built across palatial, manicured lots and the area's notable golfing lineage as the home of the celebrated Bellerive Country Club. The real estate market in Town & Country is robust, with a focus on high-end single-family residences. The area’s country clubs, parks, and commitment to preserving its semi-rural character make it a desirable location for those seeking tranquility without sacrificing convenience.

Adjacent to Washington University, these neighborhoods blend urban and suburban living. The Delmar Loop, a vibrant entertainment and shopping district in University City, adds to its appeal, attracting a mix of students, professionals, and families.

For its part, Clayton combines residential charm with commercial vitality. The real estate market here includes luxury condominiums, historic homes, and new developments. Clayton’s walkability, upscale dining, shopping options, and highly regarded public schools make it a prime choice for urban living with a suburban feel., leading to a competitive market with rising prices.

Looking ahead, the St. Louis real estate market is expected to continue its trajectory of moderate price appreciation, though at a potentially slower pace. Key projections include:

Home values are forecasted to rise throughout 2025, albeit through a gradual appreciation. This suggests a move towards a more balanced market, providing opportunities for both buyers and sellers.

While the number of transactions may remain steady, the market is anticipated to stabilize, with neither buyers or sellers having a distinct advantage. This equilibrium could lead to more strategic pricing and negotiations.

Slight increases in inventory may offer buyers more choices, potentially easing the intense competition seen in previous years. However, demand in sought-after neighborhoods will persist, maintaining a level of competitiveness.

With rising home prices, low inventory, and a burgeoning luxury market, buyers and sellers should stay informed and consider local market nuances when making real estate decisions. Engaging with local real estate professionals can provide valuable insights tailored to specific neighborhoods, ensuring well-informed and strategic transactions in this evolving market.

If you're seeking further insight on a St. Louis area home or investment property—or considering a sale of a luxury Kirkwood, Webster Groves, or St. Louis home—contact DeMaggio Partners today to begin your St. Louis real estate journey.