In a “normal” year, January is one of the quietest months of the real estate calendar. It’s a month that many local realtors usually take vacation, because very little happens.
As we know, this isn’t a “normal” year and this January isn’t following the typical plan.
Overall inventory levels are low, which is fairly normal. Yes, they are a bit lower than normal but not significantly so (2,656 listings in January nearly 7% below the 2,848 of the 10-yr average).
What’s unusual is the amount of demand. There were 612 sales in January 2021. That’s nearly 23% above the 10-yr average (498)!
It appears that our market is ramping up in activity far faster than it usually does.
This is an indication of just how much untapped demand that there is in our market…especially for “affordable” price-points. But, even the luxury end of the market is now starting to see a bump in activity.
What does all this mean?
With elevated demand and limited supply, there is upward pressure on prices. If the current situation continues, it’s likely that we will see large (eg double-digit) increases in home values…especially for detached single-family homes.
If you are thinking of buying, you will need to expect competition. Multiple offers are increasing in frequency…and while they are most common for houses, we are also seeing them with townhouses and condos.
If you are planning on selling this year, there is opportunity. I know a lot of people have tried to sell in the last 3 to 4 years and were disappointed with the results.
If you are sitting on something that is hard to sell, or that had limited demand in recent years, your window of opportunity is here.