2020 may have been the most unpredictable year in our memory, but what did that mean for the housing market? Bill is here to crunch the numbers! We're going all the back to 2015...
We broke our analysis down into three categories- Volume, Sales Price, and Price per SQFT. While the number of houses sold can tell us where the housing market peaks seasonally, the price sold can show us the best time to get the most for your home, and specifically the price per square foot is more transparent than the overall sale price. Keep in mind, all of these numbers are taken from the Seneca County Auditor's Website, and were filtered to Single-Family Residential Homes with Valid Sales (no inheritance transfers, etc.) Now, let's compare!
Volume Sold quarterly 2015-2020
While the first two quarters of 2020 had volume levels comparable to previous years, the third and fourth quarters both exceeded every previous year. We could speculate that being cooped up inside motivated more people to buy a new home later in the year 2020. There are a few other factors as well. Limited spending opportunities may have encouraged people to save more money that could be used as a down payment for a new home. Midway through the year, the national interest rate on mortgages fell to... zero. With many people suddenly having access to mortgage loans below 3%, many considered refinancing or finding a new home. Whatever the reason, the housing market saw a huge increase even after the school year began, which is usually when the market tapers.
The Average Sale Price quarterly 2015-2020
Sales prices in Seneca County also saw a significant increase in 2020. While steadily increasing in recent years, the larger leap may be attributed to a major seller's market throughout 2020. A seller's market simply means the demand is greater than the supply. In the case of the housing market, there have been far more buyers looking for a home than homes for sale. We saw many homes listed through the office that had 10-20 showings within 24hrs and multiple offers on the table that day or the following day. With buyers losing out on offer after offer, the offers began to exceed the asking prices. Some homes sold for $20k over the listing price! When the demand is high, the sellers benefit.
The Average Price per SQFT quarterly 2015-2020
Just as the other two categories, the price per square foot also saw a large increase throughout 2020. A home with 2000sqft might have sold for an average of $116,240 in 2015, but in 2020 might have a price tag of $150,346. That increase is great news as more people are selling their homes within 7 years of purchase, opposed to the old standard of 12 years. Our office has seen clients ready to sell after just 2 years of homeownership! The rising home values definitely worked in their favor last year.
We cannot wait to see what happens in 2021!