Over the next couple of months, we are going to start hearing of a decline in real estate sales and I feel that it is necessary to get ahead of this narrative. As we look back over January and February of 2020, historically speaking, these were two of the best months the real estate industry has seen in the past 10 years. Consumer activity was rampant as mortgage applications and sales soared. March, however, ushered in the unexpected and everything came to a halt. There was essentially zero activity as uncertainty swept the nation but what happened next is where the negative narrative will begin.
I specifically want to focus on April through the end of 2020. What we know as fact, is that we crammed an extraordinary amount of business in the last 9 months of 2020, essentially breaking records. Given this information, it should come as no surprise that the metrics will show a decline in sales over the next few months, specifically April – June. The rate of transactions experienced during these months in 2020 is not sustainable provided the influence of complexities such as supply.
Although we expect a decline in sales from a metric standpoint, this in no way suggest a declining real estate market. I believe that 2021 has the potential to surpass the previous year’s sales statistics, but the numbers will be more evenly distributed throughout the year.
Remember, headlines often tell only part of the story and generally terrify rather than clarify. For more information or to discuss your real estate needs contact us today.