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ST. LOUIS – St. Louis area home prices are increasing. The Post-Dispatch reported the average price of a home jumped nearly $55,000 this spring.

The average sale price for a single-family home in St. Louis City and St. Louis County is now $324,000.

That’s up 20 percent from this May compared to May 2020.

“It’s good problem to have for most sellers, but it can get nuts,” said Ben Faser, the Rhames’ realtor.

Faser counsels his clients to remain cautious despite the craziness.

“I have people reaching out to me all the time saying, ‘I’m thinking about selling my house.’ My first question to them is, ‘Do you have somewhere to go?’” he said.

A crucial question considering the latest housing report from St. Louis Realtors. Year to year, inventory is down more than 40%. The average home sold in 28 days compared to 42. Faser says price remains one of the key drivers.

“If you get caught up in the stories of 30, 40, 50 (thousand dollars) over asking price but you start too high, the buyer pool is so educated right now, and they know when something is overpriced. They’ll wait. We’ll know immediately if we’re not in the right ballpark because we won’t get showings,” Faser said.

Sellers should also consider potential tax implications. Attorney Alex Curcuru explained the “principal residence exclusion” to KMOX’s Megan Lynch.

“So long as you both own and use your residence for two of the most recent five years, you can exclude up to as a single person, $250,000 in gains. As a married couple, up to $500,000 in gains,” Curcuru said.