It has been well documented in this blog and on other sites that the real estate market has been on a tear for the past year. A recent estimate shows that homeowners gained approximately 3.1 trillion in home equity over the past 12 months. With inventory dropping by 24% nationwide, this has resulted in price gains that have not been seen since 2013. We will highlight a few noteworthy items for the real estate market in the past year in this article.
The numbers don’t lie
According to some recent research, several statistics are striking for the current housing market. Below are few:
- 58%: This is the percentage of home offers that faced bidding wars over the past year. With inventory down 24% for the past year, buyers are facing one of the most competitive real estate markets ever.
- 45%: This number reflects the jump in luxury home sales in 2020. This growth outpaced the affordable home market substantially, which grew at a 9% rate. As many affluent Americans began working remotely, the number of vacation homes sold jumped accordingly as well.
- 84%: Speaking of vacation homes, this sector of the market grew by 84%. As mentioned previously, the rise in remote working environments has contributed to this growth.
- 36%: This is the increase in demand for primary homes over the past year. While not as high as what has been seen in the vacation home market, this is still substantial growth.
- 2.7 million: The figure represents the number of Americans in forbearance. This equates to about 5% of homeowners. This number is actually down from the peak of 4.8 million (9%) in May 2020. Needless to say, many Americans opted into this program as a safety measure, rather than out of necessity.
- 63%: At almost two thirds of buyers, this number represents the amount of sight unseen offers made on homes in 2020. With inventory so tight and properties moving so quickly, sight unseen offers have become more prevalent and have even reached an all-time high.
- 24.9%: Not surprisingly, this figure represents the number of listings that mention home offices. Needless to say, the boom in remote working environments has fueled the insatiable demand for home office space.
Although everyone knows how strong the real estate market has been, these numbers certainly put things into perspective. Although Live South Florida Realty, Inc. listings consistently sell faster than the market averages, recent listings typically have been under contract within days if not hours in some cases. With this said, it is still important for sellers to know that their property should still be shown in the best way possible in order to get top dollar. Oftentimes, this simply means applying a fresh coat of a neutral color paint through the interior of the home. Although it is easy for sellers to become overconfident due to the current buyer frenzy, some small steps such as de-cluttering and painting can maximize your return.
Are you ready to sell your property in South Florida? Live South Florida Realty, Inc. can help you. Contact us today!