Market Update – Q3 July 2024

As many of you know, the intersection of real estate and politics is more significant than ever. This session has seen two major legislative victories that will positively impact real estate operations across Missouri.

Unlawful Occupation and Eviction Moratorium Prohibition

Signed into law last week (July 2024), a new “super bill” consolidates several initiatives and addresses key issues that landlords in Missouri have been grappling with, particularly during the COVID-19 pandemic.

1. Prohibition on Eviction Moratoriums: The new law explicitly prohibits any political subdivision in Missouri from enacting eviction moratoriums in the event of future crises similar to COVID-19. This is a huge relief for property owners, ensuring that they won’t face the level of uncertainty and financial strain that many experienced during the pandemic.
2. Combatting Unlawful Occupation: Perhaps the most notable change is the streamlined process for dealing with unlawful occupations or “squatters.” Now, if someone is unlawfully occupying your property, you can file an order with a judge. Upon the judge’s approval, law enforcement is required to remove the individual from your property within 72 hours. This shortens what used to be a lengthy eviction process—sometimes taking months—to just a few days.

Streamlined Approval for Historic Properties

Another major aspect of the super bill impacts historic properties. Renovations on homes listed on the historic registry can often take an arduous amount of time for approvals. Now, the historic preservation divisions are required to respond to renovation requests within 60 days, accelerating the renovation timeline for property owners looking to invest in historical properties.

NAR Lawsuit Settlement: Key Changes

As many of you may have heard, the National Association of Realtors (NAR) recently settled a long-standing lawsuit, and many changes will impact buyers and agents alike starting August 1st.

1. Buyer Agency Agreements: Effective August 1st, realtors must have a signed buyer’s agency agreement before taking clients to view properties. This change aims to promote transparency and ensure that buyers understand the obligations they agree to when working with an agent. However, it’s essential for investors to scrutinize these agreements, focusing on whether they are exclusive or non-exclusive to avoid being locked into a single agent for all property transactions.
2. Communication and Negotiation: With the rise of the buyer agency agreements, it’s critical to maintain open communication with your realtor. Review any agreements thoroughly, and don’t hesitate to reach out to your real estate contacts, including myself, for clarity and guidance if something doesn’t sit right.

The Current Market Situation

“Despite a dip in closings in June compared to previous months, the market remains robust, primarily due to the persistent lack of inventory. Specifically, the St. Louis area continues to hover between one and a half to two months of available inventory—far below the four months required for a balanced market. While this creates a challenge for buyers, it signals an ongoing demand for quality properties, especially among first-time homeowners.

Additionally, the St. Louis Hard Money Lender market is experiencing a surge in interest, indicating a shift in buyer preferences. If you’re considering larger investment projects, now may be a good time to jump into the luxury segment, as demand is notably high in this area.“

Preparing for Future Opportunities

Looking ahead, if interest rates decrease, the buyer pool may expand, increasing competition in the market. However, it’s essential for sellers and Realtors to price homes correctly given the current landscape—pricing strategies that consider apples-to-apples comparables will be crucial. Additionally, inspections are back to being part of the negotiation process. Sellers must be ready to address inspection reports meaningfully and strategically to ensure a smooth transaction.

This past session has been pivotal, and I couldn’t be more thrilled with the legislative wins that enhance the framework in which we operate. If you have any questions about the new laws, the NAR lawsuit, or strategies to navigate the changing market landscape, please feel free to reach out. We’re all in this together as we navigate the evolving world of real estate in Missouri!

Want to talk to Matthew and his team? 

Magnolia Real Estate 
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