Mid-year Market Overview

We ran some reports at the end of April.  The Clayton and Ladue markets were looking great.  We were so busy achieving sales that I never got around to posting about them.  We’re now at mid-year and have just run, for all MLS transactions, single family home sales reports for January-June 2011 compared with the same period in 2010.  There is still some good news to report – just a little less rosy than if we had written this post two months ago.

Clayton:  Transaction volume is up nearly 14%.  Price per square foot ($216) is down slightly but overall average sale price has increased.

Ladue (school system):  Transaction volume is down slightly by 6%.  Although price per square foot ($185) is also down, average sale price is up (but more moderately than Clayton).

University City ($250K and above):  Transaction volume is down by a troubling 17%.  Price per square foot is essentially even ($165) and average sale price is increased only slightly.


The first few months of the year, as posted previously, were noteworthy for a series of very high-end sales.  This activity reflected buyers with strong cash reserves and sellers rationalizing with attractive discounts.  Similarly, there was strong movement in luxury Clayton condos, with some values being snapped up (see embedded video). 

In the middle of the market, a cold wet spring contributed to slim inventory and some strong, fast sales and a level of off-market (non-MLS) activity that we have not seen in a few years.  In the first- and second-time buyer category it is slow going.  This appears to be primarily the result of a very poor employment picture and secondarily a hangover from the tax credits of the previous two years.

What does the rest of the year hold?  We continue to seek quality properties for our buyers.  In certain sub-segments, there is simply nothing for buyers to buy.  On the sell side, sellers willing to invest in their property and price to the market continue to be rewarded with solid sales.  It is amazing to see the immediate impact that a few bad economic reports has on buyer and seller behavior.  However, those (buyers and sellers) with the resolve to stay focused on the big picture are living happily ever after.