Thomas Feng with Momentum Realty, and welcome to Market Shorts, where we discuss the real estate market in short videos.
Today we’re going to be talking about whether it is currently a crazy market, or is it currently a strong market. And what’s the difference? Well, in 2019, the market was very different. In 2020, early on, January, wow, it was a crazy market. And what do we mean by that? Single family homes in the first quarter were getting around 30 to 40 offers, which is completely nuts. Now, in the summer months, single family homes are getting close to 10 to 15 offers. Condo townhomes are also now very strong, getting around 5 offers, sometimes selling in the first week.
In the beginning of the year, January, in terms of selling to list price, single family homes were at 104%, while currently in the summer at 109%. For condo townhomes, in January they were at 100%, and now currently at 104%. So over time, from January til summer, prices have gone up and they’re actually now selling for higher prices. However, in January, it was much more competitive. Not only that, a lot of homes were not appraising as well, because in December, the month before, home prices were still low. With home prices rising this year, homes are now not having any appraisal issues.
Another reason the market has been strong is NAR and Freddie Mac have projected that in 2021 and 2022, prices are going to continue rising. Also, interest rates will be going up as well.