Two of the toughest places to buy a home in 2023 are in Missouri

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When you think of competitive real estate markets, places like San Francisco, Los Angeles, and Manhattan come to mind. But these days, the picture looks a little different.

Redfin recently released a report on the most competitive real estate markets in the country as of February 2023 based on four factors:

• Number of competing offers
• Waived contingencies
• Sale-to-list ratio
• Number of days on the market

One look at the top metro areas on this list, and you know things have taken a turn in the market. The top city is Los Alamos, New Mexico with a score of 96 out of a possible 100.

A little further down the list, two of those cities are in Missouri.

Which cities in Missouri scored the highest?

Two Missouri towns are in the top 10 most competitive real estate markets in the country. At number six is Columbia, with a score of 86. Close behind is nearby Moberly, in eighth place with a score of 85.

These scores indicate they are highly competitive markets.

Why are these the state's most competitive markets?

When you think of competitive markets, you think of large cities people are moving to for high-powered career opportunities. But another phenomenon is also in play - the availability of "inventory," aka houses for sale, for prospective buyers.

Redfin says: "If it feels like there aren’t enough homes on the market for the people who want to buy one, it’s because there aren’t. Even though elevated mortgage rates continue to dampen homebuying demand, low inventory means the homes that are for sale are going fast in some parts of the country."

So the real reason may be that there are simply too few houses on the market.

An article in the Columbia Missouran from October predicted housing prices would slow down over 2023. At the time, the median sale price in Columbia was $255K. Now the median price is $280K, a 7.2% increase from this time last year.

This means Columbia real estate is on average more expensive than Kansas City and St. Louis.

By contrast, the real estate market in Moberly is feeling the effects of higher mortgage rates and cost of living. Housing prices have fallen 16.9% from their peak last year, with the median sale price at $121K. Nevertheless, the lack of inventory means homes there sell on average in one day.

What does it mean?

While the pandemic's white-hot real estate markets have slowed, it continues to be a seller's market in certain areas. However, for those who are selling, be aware that it might take some time to find the ideal new home.