We already know that the amount of brand new single family houses added to the market was significantly less in the last decade than the decades prior (according to the US Census), which is just one contributing factor to the real estate market we are in now. Coronavirus, people moving outside of cities to get more outdoor space, and low mortgage interest rates have all contributed to the extreme seller’s market we are currently in. But how did all of that change for April 2021, if at all?
P.S. If you really love data, feel free to download a CSV of real estate monthly market data from the Torii Monthly Market report.
Note: We are currently experiencing an issue with Los Angeles Area data for April 2021, so that information will be added to this post as soon as we have correct data available.
Greater Boston Area Home Closings in 2021 to Date
In the Greater Boston area, average list price and average sale price decreased across the board from February 2021 to April 2021. This was slightly unexpected, as traditionally the springtime market brings a flood of buyers. However, the Boston area experienced an earlier flood of buyers entering the market due to a variety of factors, including warmer weather, more work-from-home availability across local companies, and an increased desire for outdoor space from buyers who were living closer to the city for their jobs or convenience.
At the same time, the average days on market decreased from February 2021 to April 2021, from 119 days in February to 101 days in March to 94 days in April. 62 days on market was the median for all Greater Boston zip codes.
San Francisco Bay Area Home Closings in 2021 to Date
In the San Francisco Bay Area, average list price and average sale price decreased February 2021 to March 2021, but then rebounded in April 2021. San Francisco Bay Area data includes Oakland and the East Bay, as well as San Jose and the South Bay. It is not surprising that April’s closings averages were close to February’s, with prices increasing in the East and South Bays as more remote workers move out of the city and into the suburbs.
At the same time, the average days on market held from February 2021 to April 2021, only increasing slightly from 60 to 62 days.
How much will the real estate market change in 2021?
We haven’t seen a huge shift out of a seller’s market yet, and mortgage interest rates continue to hold steady around 3%. As long as housing inventory remains low, and buyers are interested in buying homes, we expect to see multiple-offer scenarios and possible bidding wars. Luckily for Torii clients, our real estate agents are knowledgeable in this market and are preparing their clients for all situations when preparing an offer to purchase.