Appreciation in 2020 … It’s Crazy!

Each month we have been talking about inventory (or lack thereof).  We have talked about both the reasons behind it and whether we think it will continue.  We haven’t however talked as much about the effects of that in the long term on both your current investment as well as future investments. The numbers were formally released for October and we saw staggering numbers… 

What jumps off the page in these numbers is October 2020 compared to October 2019 in both Average and Median Sales price. To see prices jumpy by 15 and 17 percent respectively compared to one year ago is unprecedented. This has been driven by the low inventory and affordable interest rates. These two things combine to produce an affordability that despite the higher prices, buyers continue to seek out new housing options.

With interest rates back at the bottom (near historic lows) as well as the limited inventory (down 44.8% year over year – see below) there seems to be no end in sight to the current market.

The indicators above are driving YTD sales towards records in terms of units and volume of homes sold. We are now almost 3% higher in closed sales than on this same date last year and for the most part this is not including new build sales which are also up substantially (many are not listed or recorded in the MLS and therefore are not included in these numbers).

What does this mean for You?

Experts across the industry as well as our opinion here at Marsh Home Group believe that the pandemic which has forced people to spend more time in their house and also spend less due to eating at restaurants less, traveling less and overall doing less will continue to drive more sales in 2021. Interest rates will also continue to play a positive roll in the housing market, government guidance as well as further promised stimulus promises to keep interest rates around historic lows despite gains in the stock market. The extremely low interest rates have allowed for the appreciation to go almost unnoticed in people’s monthly payments. The major thing everyone will be on the lookout for is rising rates at some point in the future, however, at this point that isn’t expected in 2021.Experts expect interest rates to stay low and activity and rising prices to continue into 2021.

What are your real estate goals for 2021?

We here at Marsh Home Group pride ourselves in a consultative approach to real estate selling and purchasing. Whether you have a question about the market or you want to know how to improve your home for an expected sale is 2021 or beyond, we are always willing to help.

Give us a call at 614-750-2144 to discuss your real estate goals for 2021 and beyond!