After several years of turbulent conditions during and after COVID, 2025 proved to be a year of stability in the local housing market, with 5 percent sales growth and sustainable 3 percent price appreciation. Heading into 2026, the market appeared poised for its best performance in years. “Rate-locked” owners of existing homes had begun listing their properties, and mortgage rates were finally inching lower after years of false predictions. Then war erupted in the Middle East, roiling financial markets and reversing that rate trend. So how did Columbia’s housing market hold up in the first quarter?
Sales
Single-family home sales rose 3.6 percent compared to the first quarter of 2025. January got off to a rocky start with an unexpected 14 percent decline, but the market rebounded strongly in February and March. Existing home sales led the way, climbing more than 11 percent, as buyers found greater value there than in new construction, where sales tumbled 26 percent.
Prices
The median home price rose more than 6 percent to $344,950. The increase was driven largely by renewed activity in the mid- to upper-end price ranges, which had been largely stagnant through most of 2024 and 2025. Buyers took advantage of 30-year fixed mortgage rates that dipped below 6% during the first two months of the quarter — levels not seen since 2022.
Inventory
Market inventory has been a persistent challenge for years, reaching its worst levels between 2020 and 2023. Conditions gradually improved in 2024 and 2025 as life changes prompted more existing homeowners to list their properties. However, with buyers energized by lower rates, inventory tightened again in February and March — a sign of healthy demand, but a continued constraint on the overall market.
Days on Market
The average cumulative days on market during the first quarter was 73 days, up 12 percent year-over-year. While the trend toward longer selling timelines has continued, this figure remains well below levels seen a decade ago, reflecting a market that — despite its challenges — remains relatively active.
Condos
Condo sales started the year sluggishly, down 26 percent, with the median price flat at $177,000. Boone County still lacks an FHA-approved condo development, which effectively removes condos as an option for many first-time buyers and compounds the affordability challenges facing mid-Missouri.
Outlook
The first quarter of 2026 started with a stumble but finished on solid footing. The larger question is what comes next. The conflict in the Middle East has the potential to push mortgage rates higher and reignite inflation — though its impact on the local housing market has been minimal so far. It is still too early to assess the long-term effects on the broader economy, supply chains, or housing costs.
If those impacts remain contained, 2026 should continue on its current trajectory. If mortgage rates climb back toward 7 percent and inflation resurfaces, sales will likely soften. Prices, however, would probably continue rising — as higher rates tend to discourage existing homeowners from listing, further constraining an already tight supply.
Sold On COMO
Whether you’re buying your first home, moving up, downsizing, or preparing to list, the details in this update point to one clear truth: strategy matters. The right guidance can help you navigate pricing, timing, and competition, even when inventory stays tight and rates shift. The following Sold on COMO spotlights introduce local agents, teams, and brokerages who know this market inside and out, along with how to reach them when you’re ready to make a move.
