Hello to everyone! Happy Halloween. Happy Thanksgiving, if that’s your flavor. Golfers, happy Masters week, finally! We hope that this finds everyone healthy, safe, and happy-as-can-be as we continue to duck and dodge the jabs 2020 keeps throwing our way.
October was no exception to the oddity that has been pretty much every other month of the year; riddled with chaos and inconsistencies, I’m sure no one’s too sad to wave it goodbye. On the real estate front, October proved to be record-breaking in record-breaking ways, and provided numbers we’ve never seen before.
No, there’s no echo in here. Yes, I seem to say this every month. But October was a special kind of record-breaker. In all, 22 records fell in October. October set new record lows in categories like active inventory for October (4,821), months of inventory (.8 months equals an all-time low) and days on market for October (24). Record highs were set all over the place, too. Our average close price across the Metro Area is up to $561,999, with detached homes now averaging $621,500, both all-time records. We also saw 6,246 new listings enter the market, which is not a record. But 2,022 of those new listings were attached (condos/townhomes), which is. We also saw interest rates hit record lows for the 13th time this year.
Crazy. What does it mean?
First, it means that buyers continue to have literally insatiable demand, due in large part to those low interest rates. Yes, we are deep into a seller’s market, and there are very few active listings to choose from. However, that’s not for a lack of trying. October 2020’s new listings of over 6,200 represents a 15% increase from October of 2019. We saw more new listings during a pandemic and an intense election than we did in “ho-hum” boring, regular old October 2019.
Homes are coming on the market and sellers are being bombarded with great offers to choose from just as quickly. Why? Loans are affordable. Mortgages are more affordable now than they’ve ever been. So, buyers are sticking it out and fighting for what they want because they have the buying power in the form of low interest rates.
What does it mean for sellers right now? It means that your house is worth more now than it was in September; it’s worth more than it’s ever been, and if you’re toying with the idea of selling, you need to get in touch with us.
You need to get your Realtor on the phone and start asking questions. We’re going to see continued appreciation. We don’t have the inventory, and there’s no path to having enough inventory for appreciation to stop. But it’s going to slow. This current rate of appreciation is not sustainable.
To that end, though, if you are indeed considering putting your home on the market, it’s imperative that it is priced correctly. One thing that’s remained consistent in this market is if homes are priced too aggressively, they will sit, and they will not sell. Don’t be greedy, be strategic. Talk to an expert and come up with the right plan to make sure you net top dollar.
There are many potential changes on our horizon; we’ll have a new government, a possible vaccine, new tax structures, and it’s tough to tell how the market will react. Please feel free to reach out, as always, if you’d like or need to do a deeper dive to figure out what’s best for you.
Until next month, stay healthy, stay safe, and have a happy Thanksgiving!