The annual HomeDex Report for 2020.
The Lawhead Team would like to share the annual HomeDex Report for all of 2020 for North San Diego County from North San Diego County Association of Realtors:
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 substantially before staging a dramatic comeback just a couple months later.
Buyer activity was the leader again in 2020. With mortgage interest rates setting 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 years or more.
While markedly improved from their COVID-19 spring lows, seller activity continued to lag buyer demand, which had strengthened the ongoing seller’s market for most housing segments as inventories remain at record lows.
Sales: Pending sales increased 5.5 percent, finishing 2020 at 17,059. Closed sales were up 4.0 percent to end the year at 16,623. Nationally, pending sales were up in 2020 but a handful of markets did see buyer demand lower for the year due to a combination of factors.
Listings: Comparing 2020 to the prior year, the number of homes available for sale was lower by 64.0 percent. There were 1,150 active listings at the end of 2020. New listings decreased by11.1 percent to finish the year at 20,464.
Distressed: The foreclosure market continued to remain a small player in the overall market amid numerous forbearance efforts undertaken by the government and lenders. In 2020, the percentage of closed sales that were either foreclosure or short sale remained the same as last year, at 0.4 percent of the market. Foreclosure and short sale activity may tick higher in 2021 as forbearances expire with some homeowners unable to meet their obligations.
Prices: Home prices were up compared to last year. The overall median sales price increased 9.0 percent to $676,000 or the year. Single-Family Detached home prices were up 9.5 percent compared to last year, and Single-Family Attached home prices were up 8.0 percent.
List Price Received: Sellers received, on average, 98.6 percent of their original list price at sale, a year-over-year reduction of 1.6 percent.
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 segments and across most of the country. 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 new year.
The annual HomeDex Report is from the North San Diego County Association of Realtors.
