2020 was a year like no other. Listen to Reno as he explains how the Kansas City real estate market was impacted by the events of 2020 as he discusses December statistics and explains how we got through the year.
In December 2020, the average home sale price was up 13.7% and the average sale price was 98% of asking price. We normally expect some growth in terms of home sale price, usually about 6%, and we were DOUBLE that. 3652 homes sold in December 2020, which is up 17.1%. There are 2761 pending sales. Inventory (homes on the market and available to purchase) was down 51.3% compared to December 2019.
Besides supply and demand (very few houses currently listed), interest rates play a role in this continued flurry of activity. In January 2021, mortgage rates hit an average nationwide average low for the 15th time in this this current run. Extremely low rates make it really enticing for buyers to get into the market because as they say, money is cheap!
That has of been the story all year, which has been prompting this crazy growth. I would expect this trend to continue so long as mortgage rates continue the way they are. When they start going up a little bit, you might see that kind of toned down a little.
So that’s kind of my personal really quick take. I will put out a more in depth take on what I think is going to happen this next coming year in my next video.
Reno is a key partner in the Sandi Reed Real Estate Group. He provides all of the real estate services you need with a personalized touch for your specific situations throughout the Kansas City Area. His energy and insights make him a great advocate for his clients, and a perfect choice to be your Realtor!
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