The February 2021 housing report offers bleak news for buyers. Strong buyer demand has pushed the average sales price 13.4% higher.
We suffer from record low inventories leading to a decline in sales of 2.9%. Pending contracts plummeted by a stunning 11.9% which will result in even fewer closings in March.
This infographic summarizes February data. You can find all the details at the end of the email.
The Impact of Covid on Housing – a Year Later
Our Governor declared a State of Emergency on March 10, 2020. The impact on showings was immediate. Buyer interest dropped for a couple of months, as you can see in the graphic below (dark blue line).
Two months later we experienced an incredible housing recovery that lasts to this day.
In early 2021 showing requests (orange line) were well above the two previous years. This indicates a 75% higher buyer demand than at the same time last year.
Why Homeowners Don’t Sell
We are now in the most competitive sellers’ market ever. There’s no listing competition, home values are rising, and interest rates are still super low.
So, why do many homeowners delay selling? There are 2 main reasons:
- They are afraid they won’t find a new home due to the inventory shortage.
- They don’t want buyers in their house during the pandemic.
I have solutions for the first objection, such as sell/lease-backs, bridge loans, and extended possession times. I will write about this topic in a future email.
The fear of Covid will wane as more people get vaccinated later this spring, and life will (hopefully) get back to normal.
Below you can see how new listings dropped due to lockdowns last year (green arrow). For the first time since January new listings (orange columns) were beating 2020 numbers (blue columns) in the past week.
My Predictions for the Next 3 Months
Home sales will drop even further in March 2021. They will surpass 2020 numbers only due to the interruption caused by Covid lockdowns.
The inventory will remain at record lows for at least 3 more months. Most new listings will sell with multiple offers above list price.
Home values will keep rising despite of increasing interest rates.
In early summer we may experience a small listing boom. At the same time a much higher number of new construction homes will hit the market. This will slow the upward trend of home values.
Housing Stats for February 2021
Here’s a summary of home sales data for February 2021 as reported by the Columbus Association of Realtors:
- Closed Transactions – 1,919 – DOWN by 2.9%
- Inventory – 1,689 – DOWN by 48.1%
- New Listings – 2,047 – DOWN by 16.6%
- Days on Market – 26 – DOWN by 39.5%
- Average Sales Price – $266,893 – UP by 13.4%
- Average Price / Sqft – $149.85 – UP by 11.6%
Go to Columbus Realtors to see the full report.
If you have any thoughts of selling, Call or Text me NOW at (614) 975-9650!
This may be the best seller’s market of your lifetime. Don’t miss it!