Friends and Clients —
We’ve finally put 2020 behind us. However, in the real estate market, some of the changes we saw in 2020 are sticking with us, and that might be a good thing. Here are the details:
1. New preferences
These days, people are looking for space and affordability. That’s driving the trend away from big cities and into the suburbs. In the Coachella Valley, we’ve experienced a huge surge in demand over the past few months.
More and more people are working remotely and realizing that they can move out from the city and get more real estate for their money. As a result, 22.3% of homes in December were sold for over their list price as the average sale price jumped from $425,000 to $520,000 in the Coachella Valley in just one year.
According to the National Association of Realtors, homebuyers in the largest cities were spending more time checking out suburban listings than homes near the city center.
Asking prices have also increased faster in the suburbs.
It’s not just location preferences that are changing. Since many more folks are working from home these days, homes with an office sell faster and for more money than homes without one.
However, both of those changes pale in comparison to…
2. More interest in homeownership
Since last spring, the number of first-time homebuyers has risen sharply.
20% of all adults who don’t own a home say the pandemic has them considering homeownership.
As a result, first-time buyers now make up 34% of the total number of buyers. Compare that to 2018 and 2019, when first-time buyers only made up 31% of the market.
3. Faster, easier home buying
In 2020, high-tech innovations like 3D home tours, drone footage, and virtual staging became standard replacements for in-person home visits.
We also witnessed some mundane but meaningful innovations, like phone-based entry into homes for sale (no appointment necessary) or the availability of remote mortgage pre-approvals, inspections, appraisals, and even closings.
As a result of all this, buying or selling a home is now faster and easier than it’s ever been.
So what does this all mean for you in 2021?
Well, with the high demand and low inventory we are currently experiencing, if you’re considering selling a home, the timing couldn’t be better.
The Jelmberg Team has taken full advantage of this surge in home sales by continuing to innovate and market our client’s homes with unmatched precision. The effort to stay ahead of market trends results in our client’s homes selling faster than ever. We have $30MM closed or in escrow in the first month of the year, helping 65 clients meet their 2021 real estate goals already.
Are you considering selling, or are you just curious about what your home might be worth in the current market? Then take a look at the following home value calculator, which is based on recent Coachella Valley home sales:
On the other hand, if you’re looking to buy, the good news is that around the Coachella Valley, sellers are adapting quickly to new conditions.
That means many beautiful homes have entered the market recently. If you’d like to see them, take a look at this complete listing:
Finally, if you have any questions, whether you’re buying or selling, reach out to the agent on our team you are working with. We’re here to help.
Have a great day,
The Jelmberg Team