Your Year-End Roundup
Here is our final market update of 2021.
Merry Christmas to you!
The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories.
Our year-end roundup is here, and what a crazy year it has been! It’s no secret that Zillow ran into a major roadblock this year by buying up homes that they then couldn't sell. They have around 18,000 homes they need to sell because they priced them with their own algorithm-pricing-method, Zestimate. Due to this huge flop, they had to lay off about 25-30% of their workforce, which further proved just how inaccurate those zestimates can be.
This year in San Diego we have seen a 19% price increase on homes, which is huge! This means that a home that was worth $500,000 early this year is now worth around $600,000. This is consistent with what we are seeing in markets across the country.
The average days on market has also changed since the beginning of the year. Back in January, the average time to sell a home was around 23 days. Now, just 8 days is the average! The supply has stayed low while demand is at an all time high. Currently, we have less than a month’s supply of inventory; this time last year we were sitting at about two months. This means that in less than a month, if no other homes hit the market, we would be out of homes!
Builders are also feeling the stress of this demand due to the supply chain issues we are seeing. They are unable to keep up with building new homes and experts are saying that through the 2020s (the next eight years or so), we can expect a supply shortage of homes.
What else can we expect in the new year? Well, home values will continue to go up. Not quite at the 20% rate we saw this year, but still steadily increasing. The National Association of Realtors estimate around a 3% increase, while Fannie and Freddie are forecasting up to 13%.
The market is not the end-all be-all, so remember, a house is more than just the price. It is where you and your family will make memories and create a home! Yes, prices are high currently, but people five years ago were saying the same thing. Home prices will continue to go up. Waiting could ultimately cost you more.
This may be a busy time of year, but we are always here to help you and answer any questions you may have. Thank you so much for all of your support this year. Give us a call or reply to this email; we’d love to help you. In case we don’t hear from you until 2022, have a happy New Year!