Here’s a recap of our 2020 market and what I expect in 2021.
2020 was certainly an interesting year for all of us. I hope you and your families are staying healthy out there. Back in March and April, we were panicked with the thoughts of what would happen in the real estate market. Then, in June, everything busted loose and we saw sale prices jump way up. We had been seeing a 1% to 2% appreciation in years past, but last year’s average price in June was up 10% from where it was in 2019.
In certain months, we saw increases in sales as high as 30% in places like Bel Air. Even though inventory has declined, sales are up and demand is strong. Here in January, we’re at about 30% to 33% of where we used to be in 2019 in terms of inventory. This is great news for sellers, but not so much for buyers.
Still, it’s a great time to sell, even if buying conditions aren’t ideal; there are ways you can be strategic about this process and make a seamless move into your new home.
This year I expect us to see a healthy 3% to 5% appreciation. We have such a lack of inventory that people are bidding well over list price on some homes. On the negative end, we’re seeing appraisal issues pop up as a result of these high prices.
As we transition from 2020 to 2021, we’ll continue to see higher sale prices, low inventory, and more sales as long as interest rates and inventory remain low.
If you are thinking about selling, know that the more you prepare for the market, the more your home will sell for. This includes decluttering, neutralizing, cleaning, etc. The more stuff you can get out of the house, the more spacious the home looks.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.