Housing market begins its return to normal in Southeast Missouri

We are to the point now — and frankly, we’ve been here for a while — that people are tired of the COVID-19 comparisons. But there’s no question real estate was one segment of our economy that was affected by the pandemic in a big way.

The federal government flooded the economy with cash. People were spending more time at home. Remote work became the standard for many of us. And many people were leaving major metros and moving to rural America. In fact, we heard stories of how communities like Cape Girardeau and Jackson were attractive to those leaving big cities. This area had many of the amenities you’d find in a big city but the slower pace to life, friendliness and other benefits of a small town.

Homes were not staying on the market long. It was days or only hours between the time properties were listed and sold. And prices soared.

Now the pandemic is over. While some people still have the option to work remotely, more and more are returning to the office. All of the federal spending, among other things, has led to 40-year high inflation. The Federal Reserve continues to increase interest rates, which is driving up borrowing costs for those looking to purchase homes even as list prices are declining.

A report from real estate brokerage Redfin notes that investor purchases of U.S. homes dropped 45.8% in the fourth quarter of 2022 compared to the previous year, and overall home purchases fell 40.8%. Home prices were up less than 1% over the previous year, whereas the previous year saw values up 15%. The report notes that home values have dropped 11% from the spring 2022 high water mark.

A look at Redfin’s local market analysis for Southeast Missouri communities shows a similar trend.

Cape Girardeau’s median sale price for homes was $190,000 in January 2023, up 32.9% from the previous year. But in September 2022, the median home price was $225,000 — the highest in the last five years. Meanwhile, the number of homes sold dropped 51% in January compared to the previous year.

In Poplar Bluff, the median sale price for homes in January 2023 was $123,500, down 8.5% from the previous year. The high point over the last five years was October 2022 when the median price for homes sold was $156,000.

Jackson shows a median sale price of $213,000 in January 2023, down 9.57% from the previous year. Its highest point was in March when the median price reached $266,000.

The state’s median sale price was $223,100 in January 2023, up 2.8% over a year prior. The highest median price in the last five years came in June of last year at $258,200.

Additionally, Cape Girardeau, compared January 2023 to January 2022, was listed as the No. 1 city in the state with the fastest growing sales price. Rounding out the top 10 were: Oakville, St. Joseph, Raymore, Florissant, Lee’s Summit, Kansas City, Ballwin, Raytown and St. Louis.

We’re starting to see a return to normal with the real estate market, according to Terry Baker, association executive for Southeast Missouri Realtors. I spoke with Baker in January, and a Q-and-A with her appears in this edition of B Magazine. She shared some tips that buyers and sellers should keep in mind.

Cape Girardeau has a growing list of luxury apartments. In this edition we share a photo essay of some of these spaces.

Rob Gilligan with the Cape Girardeau Area Chamber of Commerce writes about how a regional approach to economic development is a smart path. He says when one Southeast Missouri community wins, we all win.

This year, we’re putting a spotlight on communities around the area. Chris Pruett with the Daily American Republic shares some of the good things happening in Poplar Bluff, Missouri. Bob Miller has a story about the development to extend I-57 and how leaders put together a creative plan and voters have supported it. And Poplar Bluff businessman Jeff Libla shares about his outside the office passion for drag racing.

There’s always the question about why certain businesses choose to come to communities and others don’t — or haven’t yet. Jeff Long takes a look at this issue and asked area business leaders what it takes to bring some of the most popular national brands to town.

Jasmine Jones also spotlights three historic buildings that have been renovated and developed for new business in downtown Cape Girardeau.

While much of the national news focuses on the challenges of today’s marketplace — and there are plenty — this development issue of B Magazine is a reminder that there are many people in Southeast Missouri who are investing their time and resources into exciting projects, breathing new life into older buildings, thinking about new opportunities and finding solutions to make our communities stronger.

Lucas Presson is publisher of B Magazine and assistant publisher of the Southeast Missourian.