The 2020 housing market was unexpectedly turbulent towards the end of the first quarter due to the pandemic that spread across the country . As the first wave of COVID-19 hit in the spring , housing market activity slowed greatly before recovering strongly just a couple months later .
Yet again , buyer activity was the leader in 2020 . With mortgage interest rates hitting record lows multiple times throughout the year and a strong drive by many buyers to secure a better housing situation – in part due to the new realities brought on by COVID-19 – many segments of the market experienced a multiple-offer frenzy not seen in the last 15 or more years . While markedly improved from their COVID-19 spring lows , seller activity lagged buyer demand , which strengthened the ongoing seller ’ s market as inventories remained at record lows .
Sales : Pending sales increased 7.2 %, finishing 2020 at 4,354 . Closed sales were up 4.3 % to end the year at 4,175 .
Listings : Comparing 2020 to the prior year , the number of homes available for sale was lower by 54.9 %. There were 430 active listings at the end of 2020 . New listings decreased by 9.5 percent to finish the year at 4,764 .
Prices : Home prices were up compared to last year . The overall median sales price increased 7.9 % to $ 339,900 for the year . Single-Family Detached home prices were up 9.4 % compared to last year , and Single-Family Attached home prices were up 2.1 %.
The housing market in 2020 proved to be incredibly resilient , ending the year on a high note . Home sales and prices were higher than 2019 across most market . Seller activity recovered significantly from the COVID-19 spring decline , but overall activity was still insufficient to build up the supply of homes for sale . As we look to 2021 , signals suggest buyer demand will remain elevated and tight inventory will continue to invite multiple offers and higher prices across much of the housing inventory . Mortgage rates are expected to remain low , helping buyers manage some of the increases in home prices and keep them motivated to lock in their housing costs for the long term . These factors will provide substantial tailwinds for the housing market into the Q1 of 2021 .
As we now focus on the spring market approaching soon , our associates are grateful for the opportunities within the communities in which we live and work . We look forward to enjoying days spent with family and friends and wish the same for you . On behalf of all of us at Frank Hardy Sotheby ’ s International Realty , thank you for your continued trust and support . With appreciation ,
Contents
1861 Field Road Charlottesville , VA | $ 1,195,000 | Active
Single Family Detached Home Sales Pages 4 - 5
R . Franklin Hardy CEO and Principal Broker
Single Family Attached Home Sales Pages 6 - 7
Vacant Land Sales Pages 8 - 9