Here is your market update comparing data from 2020 to 2021.
Today I want to give you a market update on what we’ve been seeing in the last 12 months. The information I’m sharing with you is coming directly out of the Central Virginia Multiple Listing Service. Let’s dive in!
Back in May of 2020, the median sales price was $265,000, and in May of 2021, it was up to $297,000 (a 12.3% increase!). Property values typically only go up by about 3% to 5% per year. That’s a seriously big jump! Single-family homes are up from $268,000 to $303,000 and condos went from $249,000 to $263,000.
From May of 2020 to May of 2021, the average days on market has gone from 34 days down to 24 days, which is down by 29%. Homes have been selling quicker!
The percent of the original list price received in May of last year was 98.4%. The average is now 101%. If you’re a seller right now, you’re basically guaranteed to get your sales price. It’s still a really good time to put your house on the market.
Buyers, I know that some of you are discouraged about jumping into the market right now. All the industry experts are saying that property values are going to continue along this trajectory. One of the contributing factors to the continuing rising prices is that 70% of all homeowners right now have 50% or more equity in their houses. 38% of all homeowners actually have their houses paid off. That means that if something happens and they need to sell, they’re not going to lose money because they have so much equity. Even though it’s hard to get in the market right now, it may be even harder next year because property values are going to go up. Right now, you can take advantage of low interest rates.
Last year in May, we had 3,172 homes on the market. Now there are only 1,669. That’s down by 47%. Right now, a lot of first-time homebuyers are flooding the market, and there aren’t as many people of the last generation who are selling their houses. That’s what’s creating the supply and demand issue.
Last year in May, our months of inventory was at 1.9 months. Now we’re down to just a month of inventory. This data is again telling us that if you’re a seller, it’s probably a really good time to get your house on the market and get the most money out of it.
If you have any questions or if you’re interested in knowing what your property value is, feel free to give us a call. We would love to help you out in any way that we can. Have a great day.