Here’s a look at the latest numbers and market trends for December 2021.
I’m here with your December 2021 market update. Today we’ll be comparing the first 11 months of 2021 with the same span of months for 2020 and 2019. It’s better to do this over three years since the pandemic made 2020 a funky year for real estate.
In 2019, it took 34 days on average to sell a home in Jefferson County. That dropped down to 25 days in 2020, and in 2021, it’s all the way down to 11 days.
In 2019, the average price for a single-family home was $268,000. In 2020, that increased to $288,000, and **now it’s up to $309,000 in 2021. **
Homes are selling faster and for more money, which leads to the question I get every day: Are we heading for a crash? Honestly, I don’t know; I don’t have a crystal ball. However, the crazy market that we’re seeing is caused by an inventory problem.
“Based on the supply and demand, I don’t think we’re headed for a crash.”
We’ve been talking about this for years now, but there are just not enough homes on the market to meet the demand. There are a lot of reasons why, but one of them is that home construction ground to a halt after the 2008 recession. You can see that in the graph at 1:57 in the video. One economist estimated that home production would have to hit 2 million homes a year and stay there for 10 years to catch up.
So are we heading for a crash? If I have to answer, I’d say we’re not simply based on supply and demand. I think 2022 is going to look a lot like 2021.
If you have any questions about this or have a topic you’d like me to cover in another video, feel free to call, text, or email me. I’d love to hear from you.