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January 2021 Market Review

January 2021 started off strong for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.  

New Listings decreased 23.6 percent for Single Family and 25.6 percent for Townhouse/Condo. Pending Sales increased 9.1 percent for Single Family and 20.0 percent for Townhouse/Condo. Inventory decreased 61.0 percent for Single Family and 57.4 percent for Townhouse/Condo. Median Sales Price increased 19.6 percent to $293,000 for Single Family and 10.6 percent to $182,500 for Townhouse/Condo. 

 Days on Market decreased 39.0 percent for Single Family but increased 3.8 percent for Townhouse/Condo. Months Supply of Inventory decreased 63.2 percent for Single Family and 62.5 percent for Townhouse/Condo.  

The Mortgage Bankers Association’s January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. Keep in mind the average homeowner has over $107,000 of equity.