It’s no secret that 2020 was a year of difficulty and transition for most industries. The real estate and housing market have seen a year full of unprecedented gains due to mortgage interest rates and inventory shortages. Today, buyer demand is soaring, and sellers have great success in selling their home in minimal time and for over ask in many cases.
Market data from 2020 versus 2021 are astounding on a national level. Houses are selling in record time after listing. In January of 2020, homes spent an average of 43 days on the market before an offer was made. In January 2021, that number is nearly half, with only 21 days on the market on average.
With that, the offers are increasing exponentially. Homes are getting far more offers, which in turn creates increased bidding wars. Increased bidding wars translate to increased money in the seller’s pockets. Nationally, in January 2020, there was an average of 2.3 offers on each home. January 2021 numbers show that each home has an average of 3.7 offers. Numbers in the Seattle Eastside area are seeing much higher than this.
When it comes to price, we are seeing massive increases in home prices. Homeowners are seeing significant increases in home value and in turn, equity. Compared to this time last year, the median sales price for single-family homes is up 17.4% at $616,475. This price increase is expected to continue.
Now let’s talk inventory. Have you heard people mentioning that the inventory for housing is dwindling? It’s true! Total inventory at this point is over 30% lower than this time last year. In terms of homes available and sales, there is only a 2-week housing supply in our area. That means that only enough homes are available for purchase for two weeks to keep up with people buying those homes. Here are both the problem and the opportunity for homeowners.
If you have considered selling your home, now truly is the perfect time to do so. You hold all of the power and will get more than even you thought possible to get because of the current climate. If you’re looking to stay in the area and want to turn around and purchase, you’ll need a highly experienced real estate professional to guide you through the buying process. Good news, I am one of those! There are many options for rentback options to stay in your home until you find a new home, and there are creative ways to present your offer to make your offer stand out against others when purchasing a new home.
Bottom line: this last year has tremendously affected the real estate market, which looks like it is here to stay for 2021. If you want to see talk about your options and strategy, reach out! There’s no cost for having a conversation and talking possibilities, and it’s always good to be informed about your opportunities and future.