The condition of the real estate market has been in the news for the past month, as some areas of the country are starting to see something of a slowdown in sales and price appreciation. Some experts are even calling area markets “buyer’s markets” for the first time in years. So, how has the real estate market performed in Boone County and Columbia for the first half of 2024?
The local real estate market for home sales is rather cyclical, meaning specific months of a year typically see the highest number of sales and price appreciation. To get a more accurate indication of how the market is performing, it helps to view a three or six-month market segment compared to the same period the year before.
For the first half of 2024, single-family home sales in Boone County have increased over 5 percent since last year. It’s great to see a rebound in sales after last year’s decline; however, sales are still down 16 percent compared to the same period of 2022. In the city limits of Columbia, sales have only increased 3 percent for the first half of the year and are down almost 22 percent from 2022.
For the year 2023, single-family home sales were down 13 percent, but prices increased from 2022. For the first half of this year, prices continued increasing at a considerable rate. The median price for a single-family home in Boone County increased over 8 percent from last year to $325,000. The median price in Columbia was also up 8 percent to $336,500.
Homes have stayed on the market longer post-COVID with the average number of days on the market up to thirty-eight days, up 15 percent from last year and up 124 percent from just two years ago.
One of the main influences in determining a seller’s vs. buyer’s market is the number of months of inventory on the market — month’s supply of housing is the number of houses currently for sale divided by the number of homes sold in a month. The average month’s supply of inventory for the first six months of 2024 is 2.02 months, even with 2023. Compared to 2022, the supply of housing is up over 106 percent, which seems like a huge jump in inventory.
A perfectly functioning market has exactly six months of inventory for sale, where the number of homes coming off the market equals the number coming on the market. With that in mind, a seller’s market is indicated when monthly home inventories are below six months, and a buyer’s market is above, so 2.02 still signals a seller’s market. There are exceptions in certain market segments having higher inventory than others, such as homes priced above $600,000.
The overall home market in Boone County and Columbia is healthy and market indicators are not flashing warning signals. Prices are still increasing higher than preferred, a result of low inventory on the market. Mortgage rates are near fifty-two-week lows and look to be trending down further, which could push sales higher, along with prices for the second half of the year.
Brian Toohey is the chief executive officer for the Columbia Board of REALTORS.
