Lots of firsts in 2020. Some are terrible milestones we never want to top again that involve the coronavirus and its effects, others are such surprising highs that evolved because of the pandemic...and real estate is one of them.
Like me, you may have seen article after article about new heights in sales all over the country. Vermont housing prices increased by 23% overall since last year and there isn't a seasonal or yearly rental to be found. Florida real estate that’s had plenty of ups and downs over the past decade has also become unstoppable. Of course we could expect the same to be true in our area where the weekly summary is similar-- inventory in the suburbs is at an all time low.
“Will this bubble burst? Should I wait to buy?” numerous people have asked me. I have talked to colleagues and read articles looking for an answer. The conclusion among other Realtors is the same as mine: it doesn't look like this trend is ending anytime soon. The supply of homes is just too low and housing starts (i.e., the number of new residential structures that begin construction in a given month) are also low. With that being said, the shortage we are seeing will continue-- and with the law of supply and demand, it seems unlikely we will see any downward change anytime soon.
As I’ve mentioned in previous newsletters, I think we are likely in for an early spring market. It could conceivably start in January if the weather stays mild. Like most years, we should see a pent up demand after the holidays and people will be ready to get out and find their home. Mortgage rates show no sign of creeping up, and while promising vaccines are finally here, it could still be months before we are really back to our normal routines-- thus, our homes are still very much the centerpiece of all our daily living and work.
It's been a wild ride this year. We all worked so hard and these last few weeks of December allow us to slow down a bit to get ready for all 2021 has to give us in the real estate world. I topped off the year with a gift from a client who had a mug made for me that brought a smile to my face:
It means the world that I was able to help people during this unprecedented year. I have to say, working as an agent in 2020 has been like therapy for me too. It felt so good to be with my clients, guiding them as they move forward in a year that seemed to stand still. Thank you! Be well. xx