Did you know? According to a National Association of Realtors report, existing-home sales in 2020 surged to their highest level in 14 years. This equated to a gain that was 22% higher than a year ago. With mortgage interest rates hovering at historic lows, more buyers are expected to enter the market. This has many economists believing that the housing momentum will carry over well into 2021.
According to the National Association of Realtors, the median existing-home price for all housing types in December 2020 was $309,800. This equates to nearly a 13% gain compared to December 2019 figures. As a matter of fact, every major region of the U.S. saw home prices rise last month.
Key indicators of the housing market
- Days on the market: 70% of homes sold in December 2020 were on the market for less than a month. The average days on the market was 21 days. In 2019, properties were on the market for an average of 41 days.
- Housing inventory: Total housing inventory at the end of December totaled 1.07 million units, down 23% compared to a year ago. Inventories are at an all-time low at a 1.9-month supply at the current sales pace. In order to meet the continued increased demand for housing, new-home construction will need to continue at a rapid pace for 2021 and 2022.
- First-time homebuyers: First-time homebuyers comprised 31% of all sales in December 2020, slightly down from 32% in November.
- Investors/second-home buyers: Investors and second-home buyers comprised 14% of the market in December 2020. This group accounted for 17% of all home purchases in December 2019.
- Distressed sales: As expected, distressed sales such as foreclosures and short sales were down to approximately 1% of sales in December. This is in large part due to the moratoriums in place due to the pandemic.
All indicators seem to point towards a continued bullish real estate market for 2021. Of course, this bullishness greatly hinges on the pandemic and how we continue to recover from it. The continual challenge in the market, however, is the increasingly tight inventory of homes for sale. To add to the increased buyer demand, we are seeing more buyers from more expensive housing states such as New York, entering the South Florida market. At Live South Florida Realty, Inc. we continue to receive inquiries from out of state clients looking for assistance in their housing search. If you are considering buying or selling in Palm Beach, Broward, or Dade counties, we can help! We look forward to hearing from you soon.