Single-family home sales for June were up 8% over last year to 232 closed transactions, bringing year-to-date sales up by almost 6%. Existing home sales continue to be the driving force behind the sales gain, as existing sales increased by 6% in June and are up 10% for the first half of 2025. The pricing pressure of new construction costs appears to have dampened new construction sales, which are down 8% so far this year. The cost of new construction, especially at the upper end of the market, has given existing home sellers a greater advantage, particularly the longer a seller has owned their home, providing more negotiating room and potentially more square footage for the money. Sales in the City of Columbia were up only 5% in June but have increased 10% year-to-date so far. The National Association of REALTORS (NAR) reported this morning that existing home sales were even with June 2024, but home sales in the Midwest declined by 3.4%.
Home prices have varied from month to month so far in 2025. The median price for June ended up 10% higher at $355,000, while the average price increased 14% to $408,225. The median price is an all-time high for Boone County, while the average price is just shy of its high from July of last year. Prices in Columbia were even higher, with the median price up 11% to $375,000 (new record) and the average price up 15% to $414,567, also a new record. Year-to-date, the median home price in Boone County is up 2% to $330,000, while the average price is up 3% to $375,322.
The months supply of inventory continues to increase as the number of listings grows. The months supply of homes on the market grew by 8% to 1.84 months, fueled by active listings increasing 16% to 426. New listings in June were only up slightly, but are up almost 6% for the year. Although home inventory has increased, market inventory remains very low for this time of year, particularly below $ 400,000, where the average inventory stands at just 1.15 months. Inventory for homes priced above $ 400,000 averages about 3.45 months, which is slightly higher than usual for this time of year.
Single-family building permits continue their sluggish pattern, down 15% for 2025. However, building permits in Ashland were down most of 2024, but are up 31% so far this year. As mentioned in previous months, the weather has been challenging for new construction, with extreme cold to start the year, followed by heavy rain, and now more rain and extreme heat.
Pending listings (homes under contract) during June were down 1% to 208. This is a little concerning, considering mortgage rates declined almost the entire month of June. Other issues that could hurt pending listing is economic data, where consumer sentiment and consumer inflation expectations have risen in recent months as markets wait for international trade deal resolutions.
Condo sales through June are down 12%, but prices are still up 11% so far this year. Condo sales continue to remain depressed this year, following a 22% increase in sales for 2024, as there are still no condo developments in Boone County approved for FHA financing.
The local housing market remains stable and continues to outperform both the national and Midwest housing markets. Interest rates going forward are a question mark as economist continue to debate the path the Federal Reserve should be taking. Even if the Fed does lower rates, it’s not a given that mortgage rates will follow. Last fall, when the Fed began lowering interest rates, mortgage rates quickly jumped back over 7% for a 30-year fixed-rate mortgage. Hopefully, issues with the Fed will be quickly resolved, along with trade and tariff uncertainty, allowing the market to operate at a less volatile pace and enabling sales in the upper price segments to become more consistent.
SOURCE – COLUMBIA BOARD OF REALTORS CEO, BRIAN TOOHEY, MBA, RCE, EPRO
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