Not many of us want to look in the rearview mirror on 2020 – so many ups and downs across the globe. Even in the Twin Cities real estate market, it was full of ups and downs. This graphic gives you a quick look.
What Made 2020 a Roller Coaster?
Buyers were jumping in....!
Record low-interest rates – still under 3% from many lenders
Work / Home balance was challenging – need more space and dedicated workspace
First time home buyers wanted to get out of rising rents
Sellers were making cheddar…..!
Median home sale price rose 8.9% - record low inventory with strong buyer demand drive home prices higher
More time on their hands, able to make home improvements that attracted higher sale prices and buyers
What was challenging?
Record low available homes for sale, left many buyers frustrated and missing out
In some listing price points (under $400K), high buyer demand resulted in multiple offers within 24-36 hours of the home hitting the market. Truly snooze you lose!
Buyers can’t move fast enough from showing to offer
Covid-19 changed the way you search – heavy ‘virtual’ tours with high-quality pictures, drive-bys before people enter the home
New showing best practices for the safety of everyone restricted who could enter the home for showings and limited Open House opportunities for buyers to do a little shopping on their own.
Experts do not feel there is a concern for another "housing bubble":
But unlike the real estate boom that led the Great Recession, this nationwide price spike is not being fueled by a wholesafle collapse in lender ethics. THere aren't any low-doc or no-doc loans to be had and borrowers are having to do much more than fog a mirror to get funding....
Local real estate experts are predicting the first half of 2021 to be similar to 2020
COVID-19 protocols will remain in place. Everyone's safety is a priority.
Demand will most likely continue driving sale prices up, however, not as much as 2020
Interest rates will remain low, possibly inch up in 2nd half
As COVID-19 infection rates drop, anticipate more inventory to market late Spring/Summer
Is 2021 the year for you to sell or buy a home? Do you know someone looking to make a move? If so, please contact me at email@example.com or 612-925-8401. Berg Larsen Group has decades of experience in the Twin Cities market, we’re proven and we care. Recognized as a Minnesota top ten real estate team.