The Market as of December 14, 2020
I just wanted to start this breakdown and wish you, your families and all you hold close to a wonderful holiday season. This year was a difficult one and our one constant is the opportunity to have our families to support us and one another. I don't know where I would be without my wife, kids, siblings and parents during this. I hope you are able to connect with them safely and can enjoy the season the best way possible.
On to the market.
This week we saw price continue to perform strongly with an increase of 1.6% as an aggregate of all the segments. Apartments continue to see pricing drop due to higher inventory levels and can potentially be a great market for investors looking to take advantage of the lower rates. Soft pricing and lower rates make the opportunity for investment property ideal. But you will want to work with your realtor to ensure there is potential for cash flow when the market picks back up. Find a good property that both appreciates and generates cash flow is a bit of a unicorn, but not impossible.
The price is inversely correlated to the inventory levels. Lower inventory means higher prices. In all segments, we have seen lower levels of available property. For sellers, this continues to be ideal. In the apartment segment, the inventory levels have not dropped to a break-even point where we can see prices start to increase throughout the city. But, as we know, this is very dependent on which part of the city the property is in and the demand of that area. We can expect the inventory levels to remain low going into the winter months.
The number of active listings shrunk this week from last week by 3.4% as we start getting into the holidays.
However, as I mentioned on Instagram earlier today, this does not mean the market has stalled. This only means that sellers are not as keen as before to put their home for sale during the holidays. I would argue this is a better time to sell due to less competition, lower rates and doing this would allow you get ready to take advantage of purchasing in the spring where you will have more inventory selection (but pricing might be higher).
There is never a bad time to sell a home in our market if you are considering a purchase at the same time. If you are entering or leaving the market (first time home buyers or retirees) then planning around the market shifts are important.
That is our breakdown for this week. I will continue to write these each week and I hope you find great value in them. In January I will have a full year review issued in my monthly newsletter. To jump on that and get access to all of our contests, giveaways and special VIP content, visit https://linktr.ee/alyjanmohamed and join our newsletter.