Coldwell Banker Gosslee

Coldwell Banker Gosslee's December Housing Market Report Main Photo

Coldwell Banker Gosslee's December Housing Market Report


Now, more than ever, is the time to sell!
Posted: January 27, 2021 by Jessica Wimberly

2020 IS OFFICIALLY OVER

The National Association of Realtors, like many organizations which share critical data, reports statistics on the previous month’s activity. While New Year’s Eve has come and gone and the ball dropped virtually in Times Square, as our real estate numbers blogger, I was in limbo. I couldn’t leave 2020 until NAR reported the December stats in its Existing Home Sales Report. Phew! I can finally move my mind into 2021!

I want to start with giving our Coldwell Banker Gosslee agents and my support staff colleagues a HUGE shoutout! We are the top real estate company in Northwest Louisiana for the 28th straight year! We started our streak the same year the first President Bush took office. That is a long time! And outside of our friends at Coldwell Banker Premier in Las Vegas, we are once again the most productive two-office company in all of Coldwell Banker! Ya’all rock!

And here is an important message which I want to share right up front. For those who have considered selling your home – you do not need to wait until spring. As I am going to show over the rest of this article, buyer demand is great and fueled by continued record-low mortgage interest rates. And while selling your home is a deeply personal decision filled with emotional, financial and lifestyle considerations, if you are even the least bit interested or curious, I encourage you to speak with any of our more than 150 full-time agents.

Not only can they give you a house-by-house, street,-by-street, neighborhood-by-neighborhood look at market conditions, if you decide to begin the selling journey they can help you price your home correctly, prepare it for sale and market it properly. And, maybe even more importantly today, they can help you connect with a reputable agent in the community you are moving to. We have a powerful referral network that allows us to identify top agents around the nation and connect you with them.

Real estate is an industry largely predicated by supply vs. demand. In today’s market, we are seeing the two collide like never before. Demand is near an all-time high, while the inventory is at an all-time low.

Before I got into real estate, I equated the word “inventory” to the jeans and new clothes in my size at Simply Chic. I’m now an all-in real estate gal and recognize inventory has great meaning in our industry too. In fact, over the last several months, inventory – or the supply of homes on the market – is THE defining story.

At the national level, there are only 1.07 million homes for sale. While that sounds like a huge number, the reality is that is only a 1.9 month supply. If no more homes were to come on the market in January and February, this suggests there would be no homes available to buy. This record low is 23% fewer than was available last December.

Couple that with the fact that there were 6.76 million homes sold in the U.S. last year, up 22.2% from 2019 and the highest number since 2006. See, the demand is there.

The imbalance of supply and demand has had a dramatic impact:

·       The median (middle of all homes sold in December) price for a U.S. home was $309,800. This was up 12.9% over a year ago.

·       This marked the 106th straight month that the month’s price was higher than the previous year. That is nearly a 9-year run!

·       At the national level, days on market – the time it took to sell a home – was just 21 days. It was 41 last December.

·       70% of all homes sold in a month or less.

Wow!

I’ve always remembered a friend telling me that real estate is like Al Roker’s weather report on the Today Show. While there is a national weather map, we mostly care about “what’s happening in our neck of the woods.” So let’s take a look at Northwest Louisiana via our Coldwell Banker Gosslee Residential Real Estate Sales Report.

We are mirroring the national trends. We ended December with only 1,027 homes on the market. This is 43% fewer than last December’s 1,813. We only have a 2.3 month supply of homes, the lowest since our President Brad Gosslee has ever reported in his 13 years of extensive tracking.

And demand is also sky high! December saw 450 homes sales in Caddo, Bossier and Desoto Parishes, a 24.6% increase over last December’s 361. This was the sixth-straight month of record sales activity. For the year, we ended 2020 with 5,463 sales, up 13% over 2019.

Here is how our local supply vs. demand imbalance played out for the full year:

·       Our median home price was $185,000, up 5% over a year ago.

·       Our days on market was 34 days, down 19% from last year’s 42 days.

·       The extremely popular $200,000-$300,000 price range has only a 1.4 month supply, while all but our high-end ranges have less than a 2.7 month supply.

This chart breaks out what NAR reported vs. what happened locally in December. Record levels are marked in red:

 

U.S.

(change over December ‘19)

Northwest LA

(change over December  ‘19)

Median Price

$309,800/+12.9%

$189,250/+1%

Number of Sales

6.76 million/+22.2%

450/+24%

Inventory

1.07 million/-23.0%

1,027/-43%

Months’ Supply

1.9/3.0

2.3/4.9

Days on Market

21/41

29/86

 

We can now get a bit more granular and look at how each price ranges ended 2020 in our three parishes. I loved the number of homes sold in the $100,000-$200,000 range. I guess 2020 was definitely appropriate:

Price Range

2020 Number of Home Sales in Caddo Parish (% change over 2019

2020 Number of Home Sales in Bossier Parish (% change over 2019

2020 Number of Home Sales in Desoto Parish (% change over 2019

2020 Number of Home Sales combined (% change over 2019

Total

2997 (+10%)

2235 (+15%)

231 (+17%)

5463 (+13%)

$100,000 & less

750 (+6%)

266 (-+12%)

43 (-14%)

1059 (+6%)

$100,000-$200,000

1234 (+6%)

728 (3%)

58 (0%)

2020 (+5%)

$200,000-$300,000

630 (+18%)

817 (+22%)

69 (+30%)

1516 (+21%)

$300,000-$400,000

207 (+18%)

273 (+31%)

48 (+78%)

528 (+28%)

$400,000-$500,000

87 (+21%)

91 (+44%)

12 (+50%)

190 (+33%)

$500,000-
$600,000

46 (+28%)

34 (+31%)

1 (0%)

81 (+29%)

$600,000+

43(+39%)

26 (18%)

0

69(+30%)

 

It is astonishing to see that while our two lowest price ranges saw the lowest percentage increases, our higher priced homes saw at least 20% increases in sales. Here is the rationale.

·       The lower prices are obviously popular with high numbers of sales each year.

·       Because of historically low mortgage rates, longtime renters were able to come into the market at higher price points than they might have been able to afford previously. We also saw many “move up” from entry level homes as they also took advantage of low rates.

·       With these active buyers, this allowed those in the mid-range to take advantage of their equity and the low rates to also move up into the upper echelons.

·       Our highest price points had exceptional sales years and inventory came down dramatically. There is only a 4.4 month supply of homes in the $400,000-$500,000 range and now 7.7 months for $500,000+. A year or so ago, our ultra affluent level was in the 20-month range!

While none of us can predict the future, it does appear the market will remain tight for the foreseeable future because of the low inventory levels across the board:

Price Range 

Number of Available Homes

Month Supply

Total

1,027 (record low)

2.3

Under $100,000

234

2.3

$100,000-$200,000

349

2.1

$200,000-$300,000

176

1.4

$300,000-$400,000

101

2.3

$400,000-$500,000

69

4.4

$500,000+

98

7.7

 

All of these numbers that I shared should make it clear that this is a challenging real estate market. Buyers, who want to take advantage of the low mortgage rates, are being met with a record-low number of homes for sale. Essentially, there are almost half as many homes available today as there were last year.

Sellers are therefore having to effectively price their home properly and oftentimes navigate multiple bids and various types of offers.

This is the type of market where full-time agents who are well schooled, have strong marketing chops and a support staff that allows them to more effectively serve their clients is so important.

I can honestly tell you that the reason Coldwell Banker Gosslee has been so dominant for so long is because of our agents. They are the best!

Remember, if you are considering a move, please reach out to one of our agents. They are available to talk, provide insight and help you make the right decisions. And, as always, you can reach out to me at jessica@cbgosslee.com.

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