Although there was much heartbreak and sadness this past year, there were some positive outcomes. For one, the housing market was a pleasant surprise. While the first wave of COVID-19 slowed things down, it soon rebounded in just a couple of months thereafter.
Home sales and prices were higher in 2020 then in 2019 across most market segments. However, the number of homes available for sale was lower by 45.9 percent in 2020, which drove the market to a multiple-offer frenzy not seen in the last 15 years.
Other driving forces were learning that people who work in offices could be just as productive at home and this new reality help fuel home sales. We are already seeing big tech companies and organizations allowing more flexibility for employees to work from home. With this new found freedom, some people are moving to homes in appealing locations such as vacation properties, water fronts and beautiful country-sides now that their commuting is a thing of the past.
As we look to 2021, all roads suggest that buyer demand will continue to be strong and inventory tight creating the continued seige of multiple offers. Other trends have become buyers looking for homes with extra bedroom for office space, outdoor living spaces with firepits (recent home sales show homes sold 2.8 percent more if it had an outdoor firepit) and gourmet kitchens since more people are cooking at home.
To view the full market report for 2020, click here.