Boone County continues to experience a split housing market, but the gap is narrowing due to market inventory. Sales increased by 6% last month, reaching 235 sold single-family homes, driven by existing sales, which rose by 12%. In the City of Columbia, sales were up by 14%, with 158 homes sold. This brings year-to-date sales up by 5%.
After home prices dropped in April due to increased sales in the mid and lower price ranges while higher-priced home sales declined, they rebounded in May, with the median price up 5% to $340,000 and the average price rising 6% to $392,906. The median price in Columbia in April was down 13% but also rebounded in May by 12% to $360,000.
Days on market (DOM) were up 13% to 36 days but are still far below DOM prior to 2020. The cumulative days on market surprisingly dropped last month, from 46 days to 44 days.
The months’ supply of inventory increased by 20% to 1.71 months, still low but improving as active listings rose 27%, as more homes stay on the market longer. There continues to be a lack of inventory below $ 400k, and sales would likely have increased more if there were sufficient inventory in the lower half of the market to meet demand. The months’ supply of inventory below $400k averages 1.20 months, while above $400k averages 3.83 months. All price ranges below $ 750,000 continue to signal a seller’s market, while the top end of the market fluctuates between a buyer’s and a seller’s market from month to month.
Building permits continue to lag in 2025, down 12%. This could be due to weather from the cold start of the year and the amount of rain over the past few months, which is delaying housing starts. Permits could surge at the end of the year as the City of Columbia is expected to adopt the 2024 International Energy Conservation Code, prompting builders to pull permits sooner than usual, before the new code goes into effect.
The housing market continues to remain stable in Mid-Missouri, even as other parts of the country experience sluggish sales and price declines. Economic data from the past few weeks has improved, including consumer sentiment. However, concerns persist regarding the effects of tariffs, and oil prices have increased by almost 24% in just a few days.
A report released by Redfin recently noted that there are nearly 34% more sellers than buyers in the market, which is expected to lead to a 1% decline in home prices by the end of the year. However, this doesn’t seem to reflect the local situation, as showings increased by 9% in May compared to the same month last year. It’s also encouraging to see more existing homes being listed locally, but market demand still isn’t being met, and many homes continue to receive multiple offers, particularly those priced under $400k.
SOURCE – COLUMBIA BOARD OF REALTORS CEO, BRIAN TOOHEY, MBA, RCE, EPRO
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