2020 Market Report | Year in Review
Into 2021 we go! Full steam ahead. Many people were ready to move on from 2020, but for the DFW real estate market it was an exceptionally good year. In this blog, we want to share with you the results of 2020 and some of the key trends as we move into the new year.
2020 Market Stats for the Dallas-Fort Worth Metro
$356,525
average sold price
97,751
homes sold
96.5%
sold to list ratio
43
average days on market
1
month of inventory
Sellers
market
Home Value Trends
Home Values Climbed Considerably
Average Sold Prices were up 7.7% from 2019.
2020 started off with a bang, with home prices rising into March. We saw a slight dip when the shelter in place orders took affect. (Keep in mind, the time a contract is signed, compared to when it closes is usually a 30-day lag). Prices quickly bounced back and rose steadily throughout the year.
Home Sales Trends
Number of Homes Sold Grew Significantly
5.2% more homes were sold in 2020, compared to 2019.
Contracts decreased during the shelter in place orders, however we had record-breaking months that quickly made up for that lag during the spring. In fact, in nearly every month, more homes were sold than the same month a year prior.
Days on Market Trends
Average Days on Market Decreased
Days on market were down 11.4% compared to 2019.
We also says days on market decrease throughout the year. This included in the Fall and Winter when days on market often increase seasonally.
One could argue this is good or bad: for Sellers, their home is on the market fewer days, for buyers they have to move a lot faster. Regardless, it’s a sign of strong demand for homes.
Looking Ahead to 2021
We’re bullish on the DFW Real Estate Market and expect that we’re going to see another strong year in 2021. Especially in the early part of 2021, as the trends in motion continue. Here are some factors that we’re watching:
COVID has created a permanent demand for more space…backyards, pools, dedicated home offices, extra bedrooms and more square feet overall. Homes with these features are likely to be very popular.
Mortgage rates are projected to remain low into 2021. Low rates are good for Buyers and are also an incentive for people to jump in to the market now to take advantage of them. It’s hard to imagine mortgage rates getting any lower.
Persistently low inventory will continue to result in higher sales prices. Where supply and demand meet, is price; it’s simple economics. And there is high demand and very low supply. We’re starting the year with historically low inventory of homes, so it may be quite some time for we get to an equilibrium. That means prices will continue to rise.
Homes will continue to sell fast. The best homes are selling with multiple offers in a matter of days. Both buyers and sellers need to be mentally prepared for this scenario.