Is 2021 2020 2.0?
Through its first month, an historically slower month for real estate, 2021 has managed to maintain the same pace of its predecessor, the infamous 2020. But can it outperform?
If you read our blog post recapping the record-breaking year of 2020, you know that real estate in Raleigh and in our entire county has never been more active, productive, or expensive. Even starting a new year in cold temperatures didn't cool things off as real estate sales stayed sizzling. Single family home sales in Raleigh in January topped $189 million - a steep decline from December 2020 (-$90M), but was notably more productive than a year earlier in January 2020 (+$40M).
Let's take a deeper dive at home sales price. As you can see, median sales price for single family homes in Raleigh have continued to grow over the past year. Raleigh hit a hight point in August 2020, and took a small dip but rebounded in January.
Just like 2020, 2021 continues to be the story of LOWWWW inventory. As you can see from this graph, inventory is at a 10-year low, triggering the high prices and bidding wars we saw in mid-2020.
After looking at the stats, all available data point to a continuing trend as we start this new year. What can we expect that might change in 2021?
Well, as interest rates creep back up, buyers will have slightly less motivation to make a home purchase. The opportunistic buyers who took advantage of low rates and contributed to the historic lack of inventory may start to dwindle, allowing more inventory to come on line and balance out the uneven dynamic between buyers and sellers.
Right now, it's hard to tell when we will see that shift begin. Following historic trends, we would expect to see a surge of buying and selling in the spring when more inventory usually becomes available.
According to the Triangle Business Journal, North Carolina's population has increased by 11% over the last decade, and Raleigh by 2% YOY. Backed by a growing job market and steady flow of transplants, Raleigh is on an upward trajectory for sustained growth.
Based on our expert opinions, 2021 is looking like it's poised to be 2020 2.0 and we here at Rich Realty Group are excited to see where it takes us!
If you want to get involved and get some insight on making a real estate investment please connect with us and let us know what your goals are.
As always, it's a great day to buy real estate!
Rich Realty group is here to help guide you through the real estate process, whether your interest is new construction, investment property, buying or selling - we have experts who can't wait to work with you!
Follow: @richrealtygroup on Instagram