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We’re Not in 2014 Anymore!

We’re Not in 2014 Anymore!

Real Estate Market 2021 vs. 2014

The picture to paint for August 2021 isn’t just about the stats of the market, which I will get to, but what has been the trend since 2014. We reviewed data year to year from 2014 to 2021 and looked at the inventory–inventory has shrunk by 73% since 2014. 73%!! WOW, that is a massive amount of loss of inventory and one of the main reasons that we are in a seller’s market. In 2014 the median selling price was $219,900. Today the median selling price is $352,000! That is a 60% increase in values in that period of time.

The inventory simply cannot grow at a pace to allow the market to recover and switch from a seller market to a buyer market. The market inventory reduction leveled off in 2016-2018 with only 1-6% loss of inventory through that period of time each year. Then in 2019 inventory was down 37% going into 2020, hence the start of the boom that we saw in 2020 and the seller market taking off. You add in great mortgage rates, sub 3%, and everyone wanting to have new and more space after being in their homes for months–all added fuel to the already hot market.

Rates will continue to be sub 3% to 3.5% in the next year and that up-tick in rates won’t change the market enough to add more inventory and adjust the pricing. About 500 homes a year are built in the area and another 6000 existing homes are sold each year.

The median sale price from August 2020 to August 2021 is up 10.9%!! Normal market average is 3-4% per year in our area. That is a 300% increase in values!! Sales are up 3% in volume YTD from 2020.

Our Message

Our message to sellers is that it is still a great time to list, before it gets cold and people shut-in for the winter. Our message to buyers is that right now you are up against a lot fewer offers, so you still have to come with a strong offer, but your odds have significantly improved.

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