Missouri Housing Market Analysis - August 2024
The Missouri housing market in August 2024 presents an interesting situation with various indicators showing both positive and negative trends. This analysis delves into key metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The Median Sales Price for homes in Missouri stands at $269,100, reflecting a slight decrease of 1.6% year-over-year (YoY). In contrast, the Median List Price has seen a modest increase of 0.6% YoY, now at $269,200. This divergence suggests a potential softening in buyer demand, leading sellers to adjust their expectations.
Price Per Square Foot
The median Price Per Square Foot has risen to $157, marking a 2.0% increase YoY. Similarly, the Median List Price per square foot has surged by 9.6% YoY, reaching $163. These figures indicate that while overall sales prices may be slightly down, the value attributed to each square foot of property has appreciated, possibly due to higher construction costs or increased demand for smaller, more affordable homes.
Sales and Inventory
The number of Homes Sold in August 2024 is 7,503, which is a 3.0% decline YoY. Pending Sales have dropped significantly by 20.1% YoY, now totaling 3,335. New Listings have seen a slight increase of 0.8% YoY, amounting to 8,667. Inventory levels have surged by 19.9% YoY, reaching 13,415 homes. The Months of Supply, a critical indicator of market balance, has increased by 40.0% YoY to 1.80 months. This substantial rise in inventory and Months of Supply suggests a shift towards a buyer's market, where buyers have more options and potentially more negotiating power.
Market Dynamics
The Median Days on Market for homes in Missouri is now 27 days, an 8.0% increase YoY. This indicates that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio is 99.4%, showing a minor increase of 0.3% YoY, which means homes are still selling very close to their list prices. However, the percentage of Homes Sold above list price has decreased by 5.1% YoY, now at 24.4%, suggesting that bidding wars are becoming less common.
Price Adjustments and Off-Market Trends
The percentage of Price Drops has increased by 1.7% YoY, now at 32.9%, indicating that more sellers are reducing their asking prices to attract buyers. Additionally, the percentage of homes going off-market within two weeks has decreased by 4.5% YoY, now at 41.3%, further highlighting the cooling market conditions.
Conclusion
In summary, the Missouri housing market in August 2024 is experiencing a period of adjustment. While some metrics such as the median Price Per Square Foot and inventory levels are on the rise, others like the Median Sales Price and Homes Sold are showing declines. These trends suggest a market that is gradually shifting in favor of buyers, with increased inventory and longer days on market providing more opportunities for negotiation. Sellers may need to be more flexible with pricing and expectations as the market continues to evolve.
