2020 Market Recap and 2021 Outlook

There is a lot of news about the real estate market. We thought we’d break down a recap of 2020 and provide data and context for the year ahead. Below we look nationally, regionally, then locally.

Overall it remains a strong market to sell. Contributing to this is the monetary policy, low interest rates and resilient financial markets that provide confidence that it is a good time to buy. Home shoppers want to begin experiencing their new home. This is key as it supports market velocity for sellers.

Let us know if we can be a resource for you or those you know for your real estate needs here or across the country.

Sincerely,

Dana, Mark, Melissa, Carina and Zsanett

The Bambace Peterson Team

Looking at the year ahead in 2021 here are some highlights for context.

• Robust economic growth in the 4-5% range (The Fed predicts 4.2%, Morgan Stanley forecasts 5.9%)

• Double-digit increase in home sales (Mortgage Bankers of America expects 10%, Bank of America predicts 11%)

• An 8% gain in average sales price nationally (National Association of Realtors)

• Mortgage rates to remain historically low all year, at roughly 3% (NAR).

• Consumer confidence is increasing and consumer spending is back (63% of GDP)

• There is a lot of buyer demand amidst all-time low rates

• Share of first time home buyers was the highest in 10 years

• Existing mortgages on properties are strong, owners have more equity in their homes, and there are more “traditional” mortgages and less interest-only / adjustable rate than 2005 (roughly 1/3)

Carmel West i

nventory is down 32% 

from last year levels (that was already low). Home sales up 52.4%.

Pebble Beach saw days on market shrink 40.2% and the total sales dollar volume was up 

24.3%.

Monterey i

nventory is down 27.8% and the days on market 

is down 32% with homes selling quickly.

You can find our monthly market reports here. We will also be completing our comprehensive 2020 Market Report across 50+ neighborhoods coming out this month.

Analyzing our 63 sales transactions from 2020 we see that 60% of buyers were for primary residents and 40% for second home owners. However, 43% of the Sellers were also second home/ investors. Our homeowner demographic remains constant with many buyers' mindset shifting here for primary. We expect more of this in 2021.