2020 SURGE IN HOME SALES HIT 14-YEAR HIGH

            Home sales last year, ended at the highest level in 14 years, fueled by the pandemic that “sent buyers scrambling for more spacious homes to accommodate remote work” as well as at-home remote schooling for children including college-aged students.

On the North Fork, we have experienced many families coming to the East End, especially from tight-spaced apartments in Manhattan. People moved into their “second” homes on a full-time basis and others, with the wherewithal to buy homes, gave up smaller lodging in Brooklyn and NYC. 

“Existing home sales totaled 5.64 million in 2020, up 5.6% from 2019” despite the pandemic, when many homeowners chose to shelter-in-place, particularly seniors. The 2020 sales level was “the highest since the 2006 pace of 6.48 million, NAR said.”  Economists believe that record low mortgage rates definitely helped make homes more affordable in 2020. To date rates are low and we expect low interest rates to continue, but that remains to be seen.    

Our last column reported nationwide low inventory of homes for sale - certainly, a prime scenario for a higher sales price.  If you are thinking of selling, this may be the time to act.  COVID-19, is a definite concern, especially with the increase in cases since Thanksgiving, but many safety measures are in place, to protect homeowners and home buyers during the process.  Call us, we’ll tell you all about it and then you can decide for yourself.

 

Sources: 1. Existing-Home Sales Rise 0.7% in December, Annual Sales See Highest Level Since 2006, National Association of Realtors (NAR) , January 22, 2021.

2. Pandemic Fueled a Rush to Buy Homes in 2020, The Wall Street Journal, January 23-24, 2021 page A3.

DECEMBER INVENTORY of Homes for Sale Hits New All-Time Low*

     Realtor.com® reported a national housing inventory decline by 39.6% in December, 2020 versus last year. Total homes for sale on the market fell below 700,000, nationally, for the first time since they have been keeping records.  There were 449,000 fewer homes for sale in December compared to the same month last year. The decline in total inventory of homes for sale, suggests that buyers are still very active in the housing market, even during a typically slow holiday season- perhaps looking to lock-in record-low mortgage rates.

     The December national median listing price was $340,000, up 13.4% compared to last year, and up 12.7% in November. Nationally, the typical home spent 66 days on the market in December, which was 13 days less than the same time last year. 

What these results mean to buyers and sellers going into 2021:

If you are a seller, you have a major advantage now.  The supply of homes is depleting while demand for homes is still high – even during a typically slow time of year.  Be aggressive in marketing your home.  You should sell your home in record time.  Also, for those of you who wish to sell your home, there couldn’t be a more difficult and yet better time to sell! So, evaluate your options and take the action that makes sense, even if it is during a pandemic.

If you are a buyer, connect with a realtor that you trust, who will commit to work aggressively for you.  Be ready to make a good offer and act quickly when you see something that works for you.  Offer the best terms you can afford, and have your proof of funds or your mortgage preapproval ready.

Even though, “these are the times that try (wo)men’s souls,” you can prevail.  WE have helped many sellers and buyers reach their goal last year through those difficult months.  WE can help you now! Call us at 631-765-5333.

With much HOPE for the future, our heartiest best wishes for Health and Happiness in this new year!

*Realtor.com, December 2020 Monthly Housing Market Trends Report: Number of Homes for Sale Hits a New Low, January 7, 2021.