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Published September 18, 2020
What’s the Most Complete Picture of the 2020 Market?
Here’s a look at how the 2020 market has taken shape and what’s shaping it.
958 HOMES SOLD | $599K MEDIAN SALE PRICE
1,300 NEW LISTINGS | 57 DAYS ON MARKET AVERAGE
2.25 MONTHS OF INVENTORY | 3.25% 30-YEAR INTEREST RATE
We’ve entered the home stretch of this peculiar market year, and as we await a general election amid a pandemic, there’s still plenty of uncertainty left. That said, it’s time to look back on what we do know about our market, and today we’re sharing a year-over-year comparison of the stats that matter most from January through August (the most recent month for which we have complete data).
The first number that drives real estate is the number of homes sold; so far, 958 homes have sold in 2020—only a 4% decrease from the same stretch last year. The median sale price for single-family homes is up 12% at $599,000, while the number of new homes that have hit the market is down 8% at roughly 1,300. On average, homes are selling 5% faster this year, with 57 days spent on the market. The average sale price is now $784,065, which is a whopping 14% increase.
"Limited supply on the market is driving up prices, and buyers are taking advantage of ridiculously low rates."However, the craziest number we’ve seen in a long time has to be the months’ supply of homes on the market: just 2.25 months. For those who need a refresher, months’ supply refers to the amount of time it would take to sell all existing homes on the market if everyone were to suddenly stop putting new homes on the market—2.25 months is mind-numbingly low. It’s undoubtedly the lowest we’ve ever seen in our careers. During the Great Recession, we saw 24 months of inventory, which is insanely high. Limited supply on the market is driving up prices. While price growth of 14% sounds great, we’re admittedly not too thrilled about it; the comfort zone for healthy, sustainable price growth is 10% or below (8% is perfect, but 6% is what we’d expect as natural appreciation). We’d prefer to see that 14% ease up by the end of the year and round out to something less flamboyant. Our market is feeling a lot of pressure from today’s buyers, who have been scoping out the market for a while and are ready to pounce on a suitably priced home; they’re not even touching anything that isn’t priced correctly. That’s because interest rates are ridiculously low at the moment—2.5% under $510,000 and 3.25% for a 30-year jumbo loan. Buyers aren’t fearing an increase in rates, though the upcoming election may impact their confidence. If you’re looking to buy, sell, or invest in real estate, we’d love to help you. Just give us a call or send an email and we’ll be more than happy to assist with your needs and answer your questions!
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