Home Buying in Missouri… How it’s Changed and Where it’s Going
Jefferson City, Missouri
Real estate in our area is very diverse because you can be right in the middle of Jeff City or you can be a rural property just a few miles away. Whether it’s a downtown loft apartment or condos, or you have a residential house, we have all the options, no matter your lifestyle preferences. I recently came across this flipbook that does a great job capturing some of the big shifts we've seen in Missouri real estate over the years. It got me thinking about how great it’s been to be a Missouri realtor for the past two decades. In my mind, it’s really broken into two parts. Before COVID and after.
If you're curious about how things have changed—or where they might be headed next—take a look at the flipbook:
Post-COVID Trends Have Shifted Buyer Priorities
Before COVID, people moved primarily for jobs or to be near family. Since then, you see a lot more people moving because they want more space. National Association of Realtors does a survey every year about current buyers and what they're looking for. After COVID, the number one reason they were moving is they want more square footage, they want to be able to move around. Before that, there was a lot of sizing down. Then, it’s kind of funny; we all got stuck in our houses and the trend changed to everyone wants acreage, people want room. So that has been interesting. Buyers also enjoy outdoor living more, with people increasingly wanting chickens and gardens.
Housing Affordability Challenges & Predictions
There are a lot of people who say they want to wait until prices come down, but I say all the time, prices are not coming down. Even now, homes under $200K are rare and attract multiple buyers. Construction costs have nearly doubled for basic homes. A slab construction might cost $330K–$350K; with a basement, prices are in the $400Ks. Inventory remains low, creating sustained pressure on prices. Institutional investors are buying a lot of entry-level homes. Large investment firms are purchasing houses sight-unseen, in cash, waiving contingencies, making it difficult for regular families to compete. Many buyers are being priced out and forced to rent instead, even with good jobs and incomes. In some cases, grandparents are stepping in to buy homes in cash for their grandchildren, later financing the home back to them to get around bidding wars and cash-only offers. This could become a necessary strategy for younger generations trying to get into a home. I believe demand will stay high, especially for entry-level homes. My message is don’t wait, act now.
Why I Love This Job
Kristina McMichael Schwant
My love for this job really stems from the relationships you build. I love the people. I really enjoy helping people find where they want to live, because it's one of the biggest purchases of their lives. Many clients are repeat customers or family/friends of past clients. We have one client who I think I’ve counted that we’ve done eight transactions. Working with clients often feels like forming temporary close friendships. You spend a lot of time with people who are looking for a house. You get to know them personally. We're figuring out problems, we're showing them houses, we're getting to know their families, their kids. Rather than having a traditional friend group, Scott and I really connect more with our clients. We are usually either spending time with our family or with the current clients. So we don’t have a traditional friend group but we probably know way more people than the average person. When a deal closes, it can be sad because you’re not talking to them every day anymore. Being a realtor can be emotional. My career has really become what I base my entire lifestyle on, and I wouldn’t have it any other way.
