Mark's Market Update: 2020 Trends
Welcome to another edition of Mark's Market Update!
We’re in mid-January, and what happened in 2020?
We ended the year with the lowest inventory levels in the last 10 years ~ Less than 1.5 months of inventory in the markets that we follow.
?That is a severe sellers' market.
?A buyers' market would be about 7 months of inventory.
?Prices increased 20%+ year over year in many areas/subdivisions
Evaluating the first 10 days of January- 2021 vs 2020
?We continued to see inventory weakness, that is consistent with full year 2020. We saw a decrease in sales (closed homes) 2021 vs 2020 in the first 10 days of 25%
?Corresponding prices were up significantly. ranging up from 10-15%
? Classic Supply and Demand, with weakness in inventory and increasing prices
?Interest rates are still incredibly low; although they’re bumping up a tad right now??
When I’m looking at the next 3 months of 2021, what do I see?
??Consistency of a weakness in inventory
?If you are a seller, there is no better time, that I’ve seen in the last 5–10 years, to sell your home to get a premium
?If you’re a buyer, I continue to send the message that you have to be patient, and you have to have the appetite to participate in this market
??When I mention appetite I’m speaking about: buyers participating in multiple offers, potentially paying over asking price, and potentially weakness in various negotiating points.
If you have any questions about buying, selling, investing, or you just want to have an understanding of the value of your home, don’t hesitate to reach out to us.
Thank you so much for your continued support, and again if you have any questions please let us know. Thank you so much.