January 2021 Market UpdateIt's January 2021, so that means we're ready to take a quick look at what the housing market looked like at the end of 2020.Did 2020 end poorly? Or are things looking up'
Real Estate Market Update for January 2021
Dated: January 15 2021
January 2021 Market Update
It's January 2021, so that means we're ready to take a quick look at what the housing market looked like at the end of 2020.
Did 2020 end poorly? Or are things looking up?
Let's find out.
As you can see, New Listings and New Contracts decreased pretty substantially from November to December. New Listings were down 22% from November to December, while New Contracts were down 18% during the same time.
Well... the short answer: Winter. Every year, new listings and contracts decrease as the weather gets worse. Throw the Holiday season on top of that, and it's just a really rough time for sellers to put their houses on the market.
So, fewer listings will just automatically equal fewer contracts. Easy.
In my opinion, this is nothing to worry about. It happens pretty much every year.
COULD IT GET WORSE?
Now, if we don't see a rebound in New Listings and New Contracts by the time our March Market Update rolls around... well, then we could be in for a rough 2021. If we don't see these pick back up dramatically, this could be an indicator that the real estate market is cooling off from the hype of the past few years, and we'd likely see Buyers leave the market after losing interest in pursuing properties. This would also bring home prices down.
Let me just come out and say it: I don't see this happening (but we'll keep our eye on it).
The number of Total Sales and the Average Sales Price were down just 2% and up 2% respectively.
This is a clear indication to me that we shouldn't be worried about the market crashing or taking a big dive this year. The fact that prices have remained strong in December, that's a definite sign that the market is still strong itself. And this should continue at the beginning of 2021 into the Spring.
I'm expecting the Spring market to be busier than ever with prices driving higher than ever.
WHAT DOES THIS MEAN FOR...
SELLERS: Expect prices to stay high and continue to rise. Expect houses to continue to sell quickly. I'd expect record numbers of multiple offer situations and record-low days-on-market. If you're thinking of selling, now is an amazing time to do so. You can always visit our Sellers' page to find out how much your home is worth.
BUYERS: Take a deep breath. Things are going to be hard for you. Depending on the price range, you're competing with dozens of other Buyers in your exact situation. You're all vying for the same house at the same time, and you're all qualified. So, really it's going to come down to 1. Who's offering the most money? And 2. Who can offer the best terms and conditions to the seller? This would be things like closing date, cash purchases, appraisal waivers, inspection waivers, etc. BONUS TIP: Buyers, there has NEVER been a more important time in the history of buying houses to not only have a REALTOR on your side, but make sure it's an EXPERT REALTOR who knows how to navigate this market, multiple offers and come out on top more times than not.
THINKING OF BUYING A HOME IN THIS MARKET?
If you're thinking of buying or selling a home in this market, I'd love to talk with you. As a REALTOR since 2005, my experience and strong reputation can help you get the results you want while keeping the most money in your pockets - with the least amount of stress.
You can ALWAYS call/text me at (614) 670-9065 or email me at firstname.lastname@example.org.
Since 2005, Dan Hamilton has been one of the most respected REALTORS® in Central Ohio. His client-focused, service-based business thrives on making his clients extraordinarily satisfied as they deal ....
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