There’s no denying that 2020 was an extremely challenging year. But one area that flourished in 2020 was the real estate market—and more specifically, it offered serious advantages to sellers. Low inventory and high buyer demand drove up home prices around the country—and it looks like that dynamic is continuing into 2021.
But just what kind of home value increases did homeowners see in 2020?
According to CoreLogic’s most recent Home Price Insights report, home prices increased 9.2 percent from December 2019 to December 2020—the largest annual home price gain since early 2014. That means if your home was valued at $325,000 in December 2019, by December 2020, that same home was worth $354,900—an increase of $29,900.
Here we are, two months in to 2021. Not only are home prices continuing to increase, but homes are selling for well over list price! There has not been a single purchase contract that I’ve written this year that hasn’t been over list price. Sellers can demand just about any terms they want, and there will likely be multiple buyers willing to do it; appraisal contingency waivers, post possession agreements, no inspections, non-refundable earnest money deposits, etc.
History tells us that this kind of market won’t last forever, and that things will settle down eventually – ie: as interest rates slowly increase, there will naturally be a decrease in buyers.
The Takeaway:
So, what does this mean for you? If you’re a homeowner, chances are, your home is worth a lot more today than it was just a year ago-if you’ve been thinking of selling, now is a GREAT time to make a move and sell your home for a healthy profit. Contact your favorite Real Estate Agent today, and ask them for a complimentary evaluation of your home. You might be surprised at what you can walk away with if you decide to sell this year!
