Voices

First Quarter Single-Family Home Sales Show Slight Dip

May 22, 2023

Brian Toohey

The March 2023 single-family home sales statistics are now available on midmohomefinder.com. Single-family home sales sunk 15 percent in March to 143 units, led by new construction sales that dropped off 44 percent from last year. Existing home sales fell 7 percent.

Price increases eased a bit last month by .43 percent to $321,604 for the average sold price, but the median price increased by 4 percent to $286,000. In Columbia, both the median and average prices declined, with the median down 2 percent to $286,250 and the average down 7 percent to $318,700.

Although overall prices might be slowing, Boone County is experiencing a split market based on price. Homes listed under $400k saw a 5 percent increase in both the median and average price in March, accounting for 78 percent of the total sales in March. Homes listed above $400k saw the median price dip 6 percent and the average price slide down 10 percent but only accounted for 22 percent of sales for March.

The number of months of inventory continues to escalate, up 122 percent to 1.91 months from last year, but inventory is still one month below the average of three months in the previous 10 years. Inventory levels persist to struggle from a lack of new listings on the market.

New listings in March were 246,100 units below the average during the last 10 years for March. Inventory also varies based on the list price. The months of inventory for homes priced under $400k was 1.30 months, and homes priced 400k to $999,999 had 4.98 months of inventory (zero sales occurred above $1 million in March).

Days on the market increased again, up 62 percent to 39 days. However, DOM is still low compared to the average for March, which has been 62 days.

For the first quarter of 2023, home sales in Boone County were down 20 percent compared to the first three months of 2022; however, during the first quarter of 2022, interest rates ranged from 3.4% to 4.86% for a 30Y FRM. The median price increased by 4 percent, and the average price increased by 6 percent. Pending sales from March were down 17 percent, which will more than likely create a slow start for the second quarter of the year.

Single-family building permits overall were down 10 percent during the first quarter but were in line with the first quarter of 2019. Permits issued by Boone County were up 38 percent from the same period last year but permits in the city of Columbia were down 23 percent, and permits in Ashland declined 38 percent. However, permits in Columbia and Ashland did pick up in March after a sluggish start to the year.

Mortgage rates remain volatile as a result of economic and banking system concerns. The 30Y FRM started March at almost 7% and finished the month closer to 6.5%. Mortgage rates during the first few weeks of April have been just as volatile, with the 30Y FRM around 6.16%, pushing up mortgage demand for purchases nationally.

Price direction will be interesting to watch for April. In August 2022, the median price dipped by .74 percent, but the following month in September, the average price jumped 23 percent. With the spring market season underway and interest volatility creating opportunities for buyers, we could continue to see prices increase over the next few months while inventory still remains tight.

In addition, pricing listings are becoming more difficult based on the price range, where some listings in the entry to mid-level price are still receiving multiple offers and selling above the asking price.