Where is our 2020 real estate market headed? To answer that question, let’s take a look at how the latest numbers compare to where we were at the beginning of 2019.
- The number of new listings that have hit the market has dropped 8.3% from 2,016 to 1,889
- The number of pending homes has risen 16.3% from 1,765 to 2,053
- Supply has dropped 35.9% from 6,264 homes to 4,018
- The median home price rose 3.5% from $565,000 to $585,000
- The affordability index (i.e., how many people with a median income can afford a median-priced home) rose 3.4%
- The average days on market dropped 12.8% to 34 days
What do these numbers mean? First, we have a shrunken inventory, which is the result of fewer homes coming onto the market and more going off of it.
Second, the affordability index is rising. There are fewer homes for sale and more people to buy them. As you can see, this has already caused prices to rise, and we can expect them to keep rising throughout the rest of the year. That being said, certain events can cause the market to shift quickly, just like back in 2018 when the market fell off of a cliff almost overnight.
As always, if you have questions about this or any other real estate topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.