Missouri Buyers Agents

Buying a home in Missouri—what to know.

• Low cost of living: Missouri offers a low cost of living with affordable housing, lower property taxes, and budget-friendly goods and services. The median home price is $226,700, considerably less than in areas like Nashville at $428,000. With an average monthly rent of $1,417 for a two-bedroom apartment in Kansas City, the state’s lower overall tax burden provides potential savings for residents.
• Thriving arts and music scene: Missouri’s cultural richness is highlighted in museums like the Saint Louis Art Museum and the Nelson-Atkins Museum of Art, while St. Louis and Kansas City, renowned for their music scenes, have given rise to legends like Chuck Berry, Miles Davis, and Charlie Parker. These cities continue to be global music hubs, hosting events from intimate jazz clubs to large arenas for concerts by renowned artists.
• Natural beauty and recreational opportunities: Missouri’s diverse natural beauty, from rolling farmland to the rugged Ozark Mountains, provides abundant recreational opportunities like hiking, camping, fishing, and boating. The state features attractions such as Katy Trail State Park, the longest rails-to-trails park, and the expansive Mark Twain National Forest, drawing visitors for camping and hiking adventures.
• Delicious cuisine: Missouri, celebrated for its rich culture and history, is known for delectable cuisine. Barbecue, a cherished favorite, features slow-cooked, smoked meats with a flavorful, tomato-based sauce. Another local staple is fried catfish, often served with hush puppies and coleslaw.
• A rich history and plenty of cultural attractions: Missouri’s history, highlighted by the Gateway Arch in St. Louis, includes rich museums exploring its Civil War impact, such as Wilson’s Creek National Battlefield and the Battle of Lexington State Historic Site. Cultural heritage flourishes in communities preserving traditional crafts, with the Ozark Folk Center in Mountain View as a living history museum showcasing Ozark crafts and music.

Missouri buyers agents provide Key Tips for Homebuyers in Missouri in 2024:

• Determine Your Home Affordability: Missouri’s cultural wealth is showcased in museums like the Saint Louis Art Museum and the Nelson-Atkins Museum of Art. St. Louis and Kansas City are famous for their music scenes. They have produced legends like Chuck Berry, Miles Davis, and Charlie Parker. These cities remain global music hubs, hosting events from intimate jazz clubs to large arenas for concerts by renowned artists.
• Plan Your Down Payment and Closing Costs:  Set your affordable home price, plan the down payment, typically 20%, but adjustable based on your preferences. Varying with mortgage types, a lower upfront payment might necessitate private mortgage insurance. Closing costs for Missouri buyers can be unexpected, constituting out-of-pocket expenses. Allocate 2% to 5% of the total purchase price for these costs.
• Hire a Real Estate Agent: Your agent is a vital ally in the home-buying process, guiding you through property search, offer-making, contract negotiation, and closing. They can recommend service providers like title companies and inspectors. Prioritize researching and interviewing multiple agents with Missouri neighborhood experience before making a decision.
• Secure Mortgage Preapproval: In the home-buying process, obtaining a mortgage pre-approval in Missouri establishes the amount you can borrow. This letter signals your commitment as a serious buyer actively seeking financing for a home.
• Submit an Appealing Offer: Enhance the attractiveness of your offer for a desired home by including the offer price, preapproval letter, and proof of down payment funds. Specify contingencies and purchase terms, such as a home appraisal and inspection. You can increase appeal by waiving some contingencies or offering cash. Expect counteroffers from sellers, providing room for negotiation. Once both parties agree and sign the purchase agreement and initiate an escrow account. They usually require a deposit of 1% to 2% of the purchase amount.

Is 2024 a good time to buy a house in Missouri?

Certainly! Currently, the Missouri real estate market, as observed by Missouri Buyers Agents, experiences a shortage of buyers compared to the available housing supply. Elevated interest rates have discouraged potential buyers, reducing the likelihood of bidding wars. Anticipating mortgage rates to stabilize in 2024, there’s an expectation of an increased influx of buyers. Hence, considering a home purchase now is advisable, given the diminishing potential for bidding wars. Moreover, if mortgage payments become financially burdensome, the option of refinancing remains available.

Implications and Trends

Average Home Prices: The current Missouri real estate market, influenced by Missouri Buyers Agents, faces a scarcity of buyers due to heightened interest rates. As rates stabilize in 2024, an increased influx of buyers is anticipated, making it a strategic time to consider purchasing a house. The potential for bidding wars is diminishing, and refinancing remains an option for managing mortgage payments.

Home Sales: According to September 2023 data, home sales experienced a 7.5% year-over-year decline. In that month, home sales dropped to only 6,320, down from 6,835 in September 2022.

Average Rent Prices: Rental costs vary across the state and an average tenant in Kansas City pays $1,036. While those in Lenexa pay $1,419.

Median Days on Market: The median days on the market for homes for sale was 24 days, marking a 1-day increase compared to the previous year.

Pending Sales: The number of homes for sale decreased by 1.6% year-over-year compared to 2022. Currently, there are 22,000 homes for sale in Missouri.

Months of Supply: Missouri contends with a severe housing shortage, evident in a 1-month average supply. This situation poses a greater challenge than the national housing market.

Missouri Real Estate Market: Predictions for 2024

Median Home Prices: Missouri’s median home price averages $249,000, showing a 3.8% year-over-year increase. Anticipate a slight ongoing rise in the median sale price in 2024 due to tight inventory. The sale-to-list price ratio is 98.4%, up by 0.3 points since September 2022.

Home Sales: In September 2023, home sales saw a 7.5% year-over-year drop. The number of homes sold was 6,320, down from 6,835 in September 2022.

Average Rent Prices: Rental costs vary across the state. Tenants in Kansas City, for instance, pay an average of $1,036, while those in Lenexa pay $1,419.

Median Days on Market: Homes for sale in Missouri had a median time on the market of 24 days. This reflects a one-day increase compared to the previous year.

Pending Sales: The number of homes for sale decreased by 1.6% year-over-year compared to 2022. The current inventory stands at 22,000 homes in Missouri.

Months of Supply: Missouri faces housing scarcity with an average months-of-supply standing at 1 month, indicating high demand. This presents a challenge more severe than the national housing market.