January’s stats tell a familiar story. The current home inventory is low and creating historically low days in the MLS. However, after new listings bottomed out in November and December of 2020, the numbers are on their way up. New listings jumped from 2,043 in December to 2,781 in January. That's still down 470 year-over-year, but a glimmer of good news for buyers who want to take advantage of low interest rates.
By the end of the month, active listings stood at 61.69% lower year-over-year to just 1,263 detached single-family homes on the market. This drove down average days in the MLS to just 22 and increased the average price to $629,159 up 18.69% compared to January 2020. Even attached, single-family homes (condos, townhomes, etc.) hit a record-high average price of $397,792, though they spent around 35 days in the MLS.
Looking ahead to 2021, experts predict that inventory will likely remain low and new home builders will continue to struggle to keep up with surging demand. In addition, a 5.4% increase in the cost for building materials in 2020 is pushing up prices. The upside is that by purchasing new construction quickly, potential equity may grow before the build on the home is completed and a buyer moves in.
In addition, there are still deals out there, and a PorchLight agent can help buyers find them! If a home has been sitting on the market, an agent can perform a market analysis and present data and more realistic comps to the seller along with a reasonable offer. An agent can also dig into withdrawn and expired listings, perhaps find a seller willing to negotiate.
With interest rates at continued and expectedly sustained levels below 3% or near there, buyer demand and refinance activity will likely continue. House hunters have incredible buying power right now, enabling them to get into higher-priced homes without overextending their budgets. However, with more homeowners refinancing when interest rates begin to climb, it may create future inventory shortages. Rather than homeowners choosing to move when interest rates increase many may choose to renovate and remain in their current home.
That's a lot of information to unpack, so feel free to get in touch with your PorchLight agent to talk more about how you can successfully buy or sell right now!
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