Showing data is a week behind, but is ahead of last year even with lower inventory… we’ll have to wait until next week to see if cold temperatures put a damper on showings.
This year’s new and pending listings are now charting over last year to see the comparison. New listings are showing a similar trend… it’s eery how close pending sales are to last year. It’s encouraging that coming soon listings are stronger than last year.
With the competition for a short supply of homes for sale pushing prices up, buyers are likewise moving up in price range as low interest rates are making those homes more affordable. For the first time in my experience, even houses in the $500k-$1M price range had less than a 2-month supply at the end of 2020… and homes over $1,000,000 had less than the 5-6 month supply required for a balanced market, signifying a seller’s market even in the luxury price range.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
from our blog at Keeping Matters Current
As more people continue to identify their changing needs this year, some are turning to the upscale housing sector for more space or finer features. In their most recent Luxury Market Report, the Institute for Luxury Home Marketing (ILHM) shares:
“In a snapshot of 2020, despite the devasting effects of the coronavirus pandemic, the luxury real estate market has seen one of its strongest years since 2008. In comparison to experts’ predictions in early 2020, it is remarkable how significant demands for property type, location, and amenity preferences have changed amid the pandemic.”
With more opportunities to work from home and a growing interest in having extra space for things like virtual school, working out, and cooking more meals, the desire to own a home that can meet these needs continues to increase. Additionally, record-low mortgage rates are creating opportunities for homebuyers to stretch their legs into higher price points or even expand their real estate portfolios. The ILHM report continues to say:
“Experts believe that the demand for exclusive residential properties outside the metropolitan areas will continue well into 2021; even with the introduction of vaccines, the pandemic is far from over.
For those who have moved to the suburbs and beyond, moving back to the city full time is unlikely while the work from home trend remains. Many of these affluent homeowners are now making their secondary properties their primary residences for the foreseeable future.”
If you’re interested in buying a home this year, it appears that some higher-priced markets may have more homes to choose from than those at lower price points. Javier Vivas, Director of Economic Research at realtor.com, notes:
“Interestingly, markets, where new supply is improving the fastest, tend to be higher priced than those that have yet to see improvement, suggesting sellers are more active in the more expensive markets.”
Bottom Line
If you’re hoping to buy the home of your dreams, this could be the year to achieve that goal. Contact us to explore your possibilities.
