We all know the pandemic has been described as an “unprecedented time,” but it also defined the real estate market last year. COVID’s impact wasn’t just on the economy or the health of Americans. It changed the real estate market too. Here are some of the real estate records broken in 2021.
30-year mortgage rate
One real estate record that hasn’t been broken since 2021 was the average rate on a 30-year fixed mortgage. The mortgage rate hit a record low of 2.65% on January 7th, 2021. The previous record was hit two weeks earlier at 2.66% on December 24th, 2020. But this was just the start as there was almost a year-long streak of 16 new lows that started in March 2020. Before the pandemic in 2020, the all-time low was in 2012 at 3.31%.
Inventory remained low
Another important real estate record: inventory. 2021 started with low inventory, a record low of 1.04 million homes for sale. It’s the lowest housing inventory that the National Association of REALTORS® has recorded since 1999. It was a decrease of 1.07 million homes compared to December 2020.
Home sales appreciated
CoreLogic has been tracking home price growth for 45 years, and 2021 reached the highest annual home price growth. Recorded in October, there was an 18% year-over-year increase. This jump is also the most significant increase of growth recorded in 45 years. You can see the year-over-year increase in ABoR’s market statistics here.
Median price list increased
Sellers had all the power this past year, and they took advantage of their unique position to ask for more money for their home. In June, the median list price reached a record-high nationwide and in the Austin-Round Rock MSA. ABoR reported a record median price of $482,364. It’s a 43% increase compared to June of 2020. This is a massive jump as 2020 had median prices between $330,000 and $365,000.
Median sale price jumped
Sellers asked for higher prices, and buyers delivered. According to the NAR, the median sale price reached a new high in June for $362,800. November set a record for the month at $353,900.
The percentage of change between a home’s median purchase price and its resale reached the highest since 2012 at 48%. That’s about an average profit of $100,000 for the third quarter of 2021. The high before was $88,800 in the second quarter of 2021.
Homes flew off the market
Last year, competition for the limited inventory of homes reached a new speed. Redfin has been recording home sales pace since 2012, and 2021 hit a new record. On April 4th, 61.5% of homes under contract had accepted an offer in two weeks and 46% of homes accepted an offer in one week.
While some of these factors are changing for this new year, inventory is still low, and buyers are still competing for homes. If you need help navigating this fast-paced real estate market, contact us!
