January Market Update 2021

Well what a month it has been.  It seems that everything is selling and fast, for even more than it might have only a few months ago.  In one example, a home that was purchased for $500K in August 2020, was listed this January for $599K, and had multiple offers within 5 days for a sale price well above the asking. 

But has the average sale price of a home really increased that much?  

I used stats collected through the Grey Bruce Owen Sound Real Estate Board to prepare the charts below.  The data reflects the stats for the month of January year over year.  You can see that in 5 years the average home sale in January, our area has  come close to doubling.  

The largest jump was $109,381, between 2020 and 2021 which is equal to a 28% increase year over year for the month of January. 

One of the reasons that the average sale prices have risen is the consistently reducing lack of supply.
As you can see in the chart below  the number of homes available in January 2021 is less than half of what was available the year before, in January 2020. 

In addition to reducing inventory there has been an increase in city buyers as they mass exit their urban homes in search of more space and better prices.  If you are a Buyer and are hoping to compete in the current market, you need to be prepared.  Buyers are having to eliminate conditions that they would traditionally include, such as financing, inspections, insurance and even the sale of their own home.  

Savvy buyers and sellers might think they know the ropes, but using a Realtor is key to navigating through multiple offers, no matter which side of the deal you are on.  

For those of you who purchased a few years ago, rest easy in knowing that you made a solid investment that has already appreciated.  

If you are thinking of Buying or Selling in 2021, please call me to discuss a plan.  
If you know someone who is thinking of Buying or Selling, please share my information.
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