October set a sales record this year and that bodes well for out local market especially if you are selling. We have moved from a neutral market a year ago to a strong sellers market. This in spite of a pandemic that has left a sizable swath of the population claiming unemployment benefits.
Buyers are finding multiple offer scenarios on nearly any house they offer on under $450k. It has been a while since I've seen this kind of volume in the autumn. The real estate outlook for 2021 remains mostly positive from the experts that follow the trends.
Buyers are bit vulnerable right now as prices are rising and rates are about as low as ever. So if rates creep up and prices creep up then buyers quickly become eliminated from qualifying. Typically this is what leads to the real estate a slow down, prices rise fast enough to eliminate demand. The one thing that has helped sustain the growth is the significant rise in incomes over the last few years.
Lately the trends have been rather amazing but 2020 saw a disproportionate spike in median home prices versus the income, however rates dipped enough to offset the housing spike bringing down the actual percentage of median household income required to make the payment on the median priced home. The chart below uses national data, not local data, our figures are similar but higher on housing and income. The yellow line represents the percentage of income required to make the payment which is a general measure of affordability.