2020 – The Year of the Luxury Market
2020 – What a Wild Ride!
The residential resale market completely recovered from the early pandemic pause!. The overall resale market ended up only 0.7% behind 2019 closings, but the SFR closings were up 0.78% from the previous year. However, it was truly the Year of the Luxury Market leading the parade with a remarkable 38.3% improvement over the 2019 banner year.
Of course, the large number of luxury market closings coupled with some of the highest closing prices we’ve seen, exaggerated the market’s average closed sales prices of SFR closings. By contrast, the median price remained firm at $345,000.
Meanwhile, distressed sales continue to decline despite many who believe (or simply are hopeful) that foreclosures will be on the rise. Actual market performance does not support that.
Fun Stats for December:
- Another 130 Luxury Market Closings to end the year with a total of 824 million dollar and up closings.
- The luxury market is at 5 months of inventory – it was at 19 months of inventory in April.
- There are 45 SFR “under contract” escrows that have been on the market for over 365 days.
- Average Days on Market (DOM) for December SFR closings: (36) days
- Longest listing that closed in December: 924 DOM List to Close
- Longest currently active listing on the market – 2,109 DOM! Was listed on April Fool’s Day 2015.
There were 3,192 residential listings taken in December and that combined with a heavy sales demand have contributed to the decline in inventory – which is now 1.1 months of SFR inventory. The 3,494 available SFR listings at this time is 744 homes less than last month. However, while the 4,111 residential closings in December contributed to a welcome uptick in end of year closings. Keep up the Open Houses! Use Best Practices and Be Safe!
The median closed sales price of an SFR held firm at $345,000, but the hyperactive luxury market helped send the SFR closing average sales price from $426,626 to $446,739 for another 4.7% increase. Overall, that’s an 11.1% increase in the 2020 SFR average sales price.