By Patton Properties
As 2026 winds down, many Missouri homeowners and buyers are already thinking about what next year will bring. Nobody can predict the market with certainty, but the forces that will shape 2027 are already in motion, from mortgage rates and inventory to a statewide property reassessment. We put together this forecast to help you plan your next move with a clearer picture of what's ahead. Whether you're buying, selling, or simply watching your home's value, we'd love to help you read the signals.
Key Takeaways
- Mortgage rates will remain one of the top factors driving buyer activity in 2027.
- Growing inventory in the St. Louis area is giving buyers more options than in recent years.
- 2027 is a statewide reassessment year, which could affect property tax bills.
- Missouri's capital gains tax change may influence how some owners plan their sales.
Mortgage Rates and Buyer Demand
Mortgage rates spent much of 2026 in the 6% range, well above the record lows of the early 2020s. Most major forecasters expect rates to stay elevated compared with that era, even if they ease modestly. For Missouri buyers, that means affordability will continue to depend heavily on monthly payments rather than purchase price alone.
Many homeowners who locked in low rates years ago have stayed put, which has limited resale supply. Any meaningful drop in rates could bring both more buyers and more sellers into the market at the same time.
Many homeowners who locked in low rates years ago have stayed put, which has limited resale supply. Any meaningful drop in rates could bring both more buyers and more sellers into the market at the same time.
Rate Scenarios to Watch in 2027
- Rates hold steady: Buyers continue to shop carefully, and well-priced homes still attract strong interest.
- Rates ease gradually: Sidelined buyers return, and competition for move-in ready homes could increase.
- Rates rise again: Price-sensitive buyers may pause, giving remaining buyers more room to negotiate.
- Rate buydowns gain popularity: Seller concessions used to reduce a buyer's rate may become a more common negotiating tool.
Inventory and Pricing Across the St. Louis Area
Inventory in St. Louis City and County grew year over year through mid-2026, giving buyers more choices than they had during the tightest years of the market. More listings typically mean longer marketing times for homes that are overpriced or dated. Homes that are well maintained and priced correctly have continued to sell efficiently.
Inner-ring suburbs like Sunset Hills operate a bit differently than the broader metro. Limited land for new development and steady demand for established streets near I-44 and I-270 help support values here.
Inner-ring suburbs like Sunset Hills operate a bit differently than the broader metro. Limited land for new development and steady demand for established streets near I-44 and I-270 help support values here.
Pricing Factors That May Matter Most Next Year
- Condition premiums: Updated, move-in ready homes are likely to stay in higher demand than homes needing work.
- Pricing accuracy: Homes priced correctly from day one tend to avoid the longer days on market that come with price reductions.
- Limited new supply: Built-out communities like Sunset Hills have few opportunities for large-scale new construction.
- Seasonal timing: Spring has traditionally brought the most buyer activity across St. Louis County.
Property Taxes and the 2027 Reassessment
Missouri law requires counties to reassess real property in every odd-numbered year, which makes 2027 a reassessment year statewide. Owners in St. Louis County will receive updated assessed values that reflect recent market activity. Those values feed into the property tax bills that arrive later in the year.
For buyers, this matters when estimating a monthly payment. For sellers, it's one more reason to understand your home's current market value.
For buyers, this matters when estimating a monthly payment. For sellers, it's one more reason to understand your home's current market value.
How to Prepare for Reassessment Notices
- Review your notice carefully: Check the property details, square footage, and features listed for accuracy.
- Compare recent sales: Look at comparable homes near you to see whether the new value appears reasonable.
- Know the appeal window: St. Louis County sets deadlines for informal reviews and formal appeals to the Board of Equalization.
- Budget for escrow changes: If your taxes are paid through your mortgage, a higher bill can increase your monthly payment.
Missouri's Capital Gains Tax Change
In 2025, Missouri enacted House Bill 594, which allows individuals to deduct 100% of their federally reported capital gains from Missouri taxable income. The change applies to gains reported on or after January 1, 2025. That includes many real estate sales, which could influence how some investors and second-home owners think about selling.
Federal capital gains rules still apply, and every situation is different. A tax professional can help you understand how the change applies to your own property.
Federal capital gains rules still apply, and every situation is different. A tax professional can help you understand how the change applies to your own property.
Who May Want to Review the Change With a Tax Advisor
- Investment property owners: Sellers of rental homes may see a lower state tax bill on their gains.
- Second-home owners: Owners of Lake of the Ozarks homes or other secondary properties may want to revisit their plans.
- Inherited property owners: Heirs considering a sale may benefit from understanding both state and federal rules.
- Long-time homeowners: Owners with gains above the federal primary residence exclusion may see a state-level difference.
FAQs
Will home prices in Sunset Hills go down in 2027?
No one can promise what prices will do. Sunset Hills benefits from limited new supply and strong access to the rest of the metro, which has helped support values over time. We can share current neighborhood data whenever you want a closer look.
Should I wait until 2027 to sell my home?
That depends on your goals, your next home, and your financial picture. Waiting can make sense in some situations, but more inventory could also mean more competition next year. We'll help you weigh both timelines.
How will the 2027 reassessment affect my taxes?
Your assessed value is only one part of the equation, since local tax rates also play a role. Reviewing your notice when it arrives is the best first step. We can share recent comparable sales if you're considering an appeal.
Reach Out to Patton Properties
The 2027 Missouri real estate market will reward buyers and sellers who plan ahead. At Patton Properties, we're here to help buyers and sellers across Sunset Hills and greater St. Louis make decisions based on current data and clear strategy.
Reach out to us, Patton Properties, to connect. Whether you're preparing to sell, planning a purchase, or simply curious about your home's value, Patton Properties is ready to help you get ahead of what's next.
Reach out to us, Patton Properties, to connect. Whether you're preparing to sell, planning a purchase, or simply curious about your home's value, Patton Properties is ready to help you get ahead of what's next.
