The average home sale price was up in December and higher in both running averages.
Home sales were surprisingly strong in the last half of 2020 and it’s part of the reason prices stayed solid.
What caused prices to do so well?
The main reason prices increase on average through the last half of 2020 was higher sales and higher than normal sales led to lower inventory. Lower inventory levels were helped along by fewer homeowners listing and with supply down and demand up prices will naturally trend upward.
Will prices continue to increase?
Sales don’t appear to be slowing down and we could see fewer than normal homes listed for sale again in 2020 amidst continued COVID concerns.
Already in January sales are up 37% over January 2020 and inventory remains lower than normal. If this continues we are bound to see prices increase.
Check back in February to see how sales, inventory and the average home sale price trends.