As we make our way through the first month of 2021, we find that our market is still going very strong. Usually here in the Keys, we see an uptick in the number of listings in the first quarter of the year. So far, that anticipated increase has been a small one, as our inventory remains extremely low compared to previous years—a trend that rings true for most markets across the country right now. Here’s how we wrapped up 2020:
Keys-wide sales rose 16.6% compared to 2019. Some areas recorded even more dramatic increases, like the Middle Keys, which enjoyed a dominant 30% increase. Our average sales price increased by 8.5% and is now hovering close to $671,000. How low, exactly, is our inventory? Compared to 2019, we finished 2020 down an astounding 24%. It’s an inverse relationship; whenever our listing inventory is down, our sales increase.
One reason to believe that high demand and low supply will continue to define our market early on in 2021: Pending transactions are up 51.9% year over year—what a jolt! It seems that as soon as properties hit our market, they go under contract. Super-low interest rates haven’t gone away, either; buyers still have ample incentive to jump into our market and lock in a stellar rate to save thousands of dollars over the life of their loan.
“It’s an inverse relationship; whenever our listing inventory is down, our sales increase.”
As of January 15, Freddie Mac’s website advertised a 30-year fixed mortgage at 2.6% (2.16% for a 15-year). As far as we can tell, rates still seem to be trending downward (or, at the very least, haven’t begun marching back up yet), but we’ll be keeping a close eye on them.
As always, if you have questions about any of these numbers or want to know more about where our market might be headed, please feel free to reach out via phone or email. We would love to hear how we can help you with your 2021 real estate needs or simply be a trusted local resource for you.
