Look Back: 2020 Local Real Estate Market
Looking back on the 2020 local real estate market, it’s safe to say it had a banner year. Unprecedented circumstances added fuel to a Seller’s Market and made homeowners a very happy sector of the population. (more on this later)
So, for the next few weeks, as we endure the endless analysis of the year by politicians, reporters, leaders and more – let’s not forget there were bright spots to celebrate as we bid goodbye to a record shattering year of failures and successes.
2020 & the Local Real Estate Market
The pandemic caused economic chaos. In answer and to minimize a long term recession, the Fed lowered borrowing rates and the interest rates for mortgages saw historic lows – making buyer’s money go farther when looking to buy or even build a home. When people spend money, the economy benefits.
The mortgage rates, hovering around or below 3% for the last quarter of 2020, added to the frenzy to find a home to purchase. We saw record breaking months for sales volume and the existing home owners equity continued to rise.
The numbers for the real estate market in central Indiana were just released for December 2020 and the year. They are astounding amidst a global pandemic.
Here are a few of the highlights through December’s numbers:
- The median sales price is up 14.4% over Dec 2019
- Closed sales are up 20.5% over Dec 2019
- Pending sales are up 28.4% over Dec 2019
The chart below shows you remarkable stats from
- Nov 2020 vs Dec 2020
- December 2020 vs December 2019
- Year over year stats for 2020 vs 2019
- Median sales price increased from $190,650 to $217,500 – a 14.1% increase year over year!
- Pending sales are up 8.8% over 2019
- Price per square foot increased from $112/sf to $124/sf, a 10.7% increase
While these numbers make sellers very happy, inventory levels are still at record lows.
- Active inventory for December 2020 was 2,396 homes – down from December 2019 when we were at 4,873 homes. That’s a decrease of 50.8% of homes available for sale on the market.
This shows we have definitely been fighting the age old Supply vs Demand this year. Demand is at an all time high and supply is at an all time low meaning we spent 2020 in an unprecedented Seller’s Market.
Central Indiana Housing Market News
The National Association of Realtors identified 10 markets that have shown resilience during the pandemic period. They are expected to perform well in a post pandemic environment, as well.
Central Indiana – Indianapolis-Carmel-Anderson made the list. In the local area, the housing market is continuing strong and is attracting attention nationwide. Relocating people/families, investors and more are looking to dive into the housing market in our area.
This will likely add to problem of already historic low inventory of homes for sale. The demand is growing and the supply is not keeping up.
Where to From Here?
The Real Estate Market Forecast for Central Indiana in 2021 is looking good. If you are considering buying, your dollars will go farther as the Fed holds rates low to boost the economy.
If you are selling, you can benefit from the equity you have in your home thanks to the home values continuing to increase. Even if you just purchased a home 2 to 5 years ago, you could make a nice profit! (Call 317-572-5589 for a free, no obligation Comparable Market Analysis to see where you stand!)
Take a look at the in depth article here for more information: 2021 Housing Market Forecast.
We know you need information about the local real estate market. Providing you this knowledge can help you can make the right decision for you/and your family about the right time to buyer and/or sell. It is our pleasure and honor to guide you on this journey.