Home values increased by how much?! Today I’m breaking down a truly mind-blowing January 2020.
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In this month’s market update, we’ve got two new records to look at, and each one is astounding in it’s own right.
Last month alone, we saw a 20.1% increase in the value of single-family homes last month alone. I’ve been in this business for over 15 years and I can’t recall witnessing such a spike in home values in just one month.
The cause of this is the “perfect storm” that we touched on in videos prior: Sales are up, and inventory has fallen off a cliff (here’s the other record: we just hit a 10-year low in single-family home inventory).
Last month, single-family home sales were up 8.9% over January 2019, and inventory took a 19.6% tumble to land at 4.1 months (October 2007 was the last time we saw it that low). New construction sales were pretty solid, up 1.4% with a 5.2-month supply of inventory.
Resale home sales are indicative of a relocation trend. People are moving from up north and other areas to Myrtle Beach, and I’m seeing an overall trend toward more full-time owners/occupants than we typically see here. Condo sales stayed nearly flat (0.6% increase), though their prices popped up 5.1%. Condo inventory is also down.
My expert advice is to pay attention to the single biggest driver of our marketplace: single-family resale homes. Sellers, take advantage of this crazy jump in the value of your home. Average sales price went from $253,000 last year to $304,700 in January 2020.
As I explained during a recent radio talk show appearance, we’re seeing an early entry into the spring market for a lot of 2020 buyers, so consider selling now; you may have more equity than you think. Buyers have reason to act now as well, because we’re only seeing prices go up; the next three months will be very, very strong.
If you’re on the fence about selling, reply to this email or give me a call, because we absolutely need inventory. We have 50,000-plus buyers from all over the globe scanning our websites for properties. Please also reach out if you’d like an evaluation of your home—one that’s more accurate than the online calculations that have yet to catch up with our 20.1% spike.
