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The Missouri housing market has been on an upward trend in recent years, with a steady increase in home prices and a growing demand for new construction. Despite the challenges brought by the COVID-19 pandemic, the market has remained resilient, and experts predict that it will continue to grow in the coming years.
In this article, we will explore the current state of the Missouri housing market, including its opportunities and challenges. We will also provide insights into the factors driving the market and how they are likely to impact homebuyers and sellers in the state.
The State of the Missouri Housing Market: An Overview
According to recent data from Zillow, the median home value in Missouri is currently $179,900, with an average price per square foot of $114. This represents a 9.8% increase in home values over the past year, and experts predict that this trend will continue in the coming years.
One of the key drivers of the Missouri housing market is the state’s growing population. According to the United States Census Bureau, Missouri’s population has grown by over 5% since 2010, with many residents moving to the state for its affordable cost of living and strong job market.
The Impact of COVID-19 on the Missouri Housing Market
The COVID-19 pandemic has had a significant impact on the Missouri housing market, as it has on many other industries across the country. One of the most notable effects has been a slowdown in new construction, as builders have struggled to source materials and find skilled labor.
However, despite these challenges, the Missouri housing market has remained relatively strong, with many buyers continuing to enter the market despite the economic uncertainty caused by the pandemic. This is partly due to historically low interest rates, which have made it easier for buyers to finance their purchases.
The Opportunities and Challenges of the Missouri Housing Market
Opportunities: Low Interest Rates and Affordability
One of the biggest opportunities for homebuyers in the Missouri housing market is the current low interest rates. According to Bankrate, the average 30-year fixed mortgage rate in Missouri is currently around 3%, which is significantly lower than the national average of 3.18%.
This has made it easier for buyers to finance their purchases and has helped to keep home prices relatively affordable, even as demand for housing has increased. According to Zillow, the median home value in Missouri is currently $179,900, which is significantly lower than the national median of $269,000.
Table 1: Median Home Values in Missouri by Region
| Region | Median Home Value ||——–|——————|| St. Louis | $190,000 || Kansas City | $200,000 || Springfield | $165,000 || Columbia | $207,000 || Jefferson City | $170,000 |
Challenges: Limited Inventory and Competition
One of the main challenges for homebuyers in the Missouri housing market is the limited inventory of available homes. According to Zillow, there are currently around 14,000 homes for sale in Missouri, which is significantly lower than the number of homes available in other states.
This limited inventory has led to increased competition among buyers, particularly in popular urban areas such as St. Louis and Kansas City. This has made it more difficult for buyers to find affordable homes that meet their needs, and has driven up prices in some areas.
Table 2: Average Days on Market for Homes in Missouri
| Region | Average Days on Market ||——–|———————-|| St. Louis | 38 || Kansas City | 44 || Springfield | 36 || Columbia | 33 || Jefferson City | 29 |
The Factors Driving the Missouri Housing Market
The State’s Growing Population
One of the main factors driving the Missouri housing market is the state’s growing population. As more people move to the state, demand for housing has increased, particularly in urban areas such as St. Louis and Kansas City.
This has led to a surge in new construction, as developers seek to meet the growing demand for housing. According to the National Association of Home Builders, there were over 17,000 housing starts in Missouri in 2020, up from around 14,000 in 2019.
The State’s Strong Job Market
Another factor driving the Missouri housing market is the state’s strong job market. According to the Missouri Department of Economic Development, the state has added over 50,000 new jobs since 2019, with growth in sectors such as healthcare, technology, and advanced manufacturing.
This has led to increased demand for housing among workers in these industries, particularly in urban areas where many of these jobs are located. It has also helped to attract new residents to the state, who are drawn by the prospect of job opportunities and a lower cost of living.
The Future of the Missouri Housing Market
Despite the challenges brought by the COVID-19 pandemic, the Missouri housing market is expected to continue its upward trend in the coming years. Experts predict that low interest rates, a growing population, and a strong job market will help to drive demand for housing, particularly in urban areas.
However, there are also concerns about the impact of rising home prices and limited inventory on affordability and access to housing, particularly for first-time homebuyers and lower-income residents. These issues will need to be addressed by policymakers and industry leaders in the years ahead.
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Explore the current state of the Missouri housing market, including its opportunities and challenges. Learn about the factors driving the market and how they are likely to impact homebuyers and sellers in the state.
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Missouri housing market, homebuyers, sellers, new construction, low interest rates, affordability, limited inventory, competition, growing population, strong job market
