When the middle of March rolled around, I remember thinking, “I’m sure glad that I had a better than normal winter, because the rest of 2020 is going to be rough for real estate.”
At the time, none of us could have predicted how great the real estate market would turn out to be for 2020. According to Memphis Area Association of Realtors (MAAR), the average sales price in November 2020 was up almost 11 % from the year before.
There are several reasons for this.
First, record low interest rates. If you purchased or refinanced your home this year, you know what I’m talking about. And rates have continued to get better…they hit another record low this week!
Second, folks wanted more space. For the past ten months, our homes have become not simply homes but also offices and schools. We’ve been together A LOT, and we’ve found that we could use a little more space. This is why many have fled their expensive cities and small apartments. I’m looking at you San Francisco and NYC.
Finally, there’s a supply and demand issue. Inventory is down, which has led to lots of multiple offer situations and homes going over list price. It continues to be a seller’s market, which means that prices are going up.
How has all of this impacted me personally? I mentioned at the beginning of this post about my fears that this was going to be a rough year for real estate. Surprise, surprise, though…it ended up being my best year ever as an agent, with just under $4.5 million in sales. Who knew?
So what is ahead for 2021? I continue to be bullish on real estate, especially in Memphis. Compared to other cities, Memphis is still one of the most affordable places to live. I will continue to help clients buy and sell real estate, and I plan to be a buyer as well.
In 2020 we purchased six properties, but for the first time in awhile we didn’t sell any of them. We decided to keep them all as long-term rentals. We hope to buy a few more in 2021, but this year we plan on selling at least one. We’ve just begun a renovation project in my neighborhood (Annesdale-Snowden). It’s a 4BR/2.5BA home (w/ separate office and bonus room) built in 1900. It’s going to be a fun project, and it will make a great home for whoever buys it. 2021 will also mark our entrance into new construction. For the past few years we’ve been buying vacant lots in midtown, and we just broke ground on our first build in Vollintine-Evergreen.
I’m grateful for those who have given me the opportunity to help them buy or sell a home. If you are in the market to do the same, I’d love to help you! Feel free to check out my Zillow site to read more about me as well as reviews from my clients.