February 2021 saw another very high average sale price, just below January and December’s averages.  Also, the number of local sales was double last months, which is an incredible turn around because low inventory was such a problem in January.  The extremely strong Sellers market continued and strengthened more in February, being fueled by low inventory and very strong buying demand. 

There were 86 sales in February, double the 43 in January, up from the 70 in February 2020, and just above the 13-month average of 79 sales per month.  February is traditionally a mixed month for sales because bad winter weather can slow activity.  Its very encouraging to see such an increase in sales for a February, especially when compared to January where homes for sale were so low and demand was so strong. 

Average sold prices, $813k(!), are up significantly from February 2020, $641k, (+27% !), and just below January 2021, $839k, and well above the increasing 13-month average of $719k.  These are incredible price trends for a global pandemic.   But I’m relieved to see a decrease in the average, though small, because for most of 2020 there was a consistent increase in prices every month, which was unsustainable.  Townhouse average sales prices, $712k (12 sales), was another record high and up significantly from last February’s, $516k (+38%!), and above their 13-month average of $598k.

We just started displaying the percentage ratio of Sale Price vs List Price. It was 107% for February!  That is, all sales were selling for an average of 7% OVER asking price!  Which means that each sale got on average of approximately $56,000 over asking on the average price of $813k!

Active Listings, 74, is also double last month’s 37, but below last years, 112, and also below the decreasing 13-month average of 98.  This 74 Active Listings is a very welcome change from the near historically low number in January, 37.  These low inventory levels are the on-going trend that started in November 2019, but maybe they are the new normal…

Months of Inventory, 0.9, is below last years low, 1.6, and equal to last months 0.9, and less than the decreasing 13-month average of 1.5.  This is the sixth month of the last seven with MOI of less than 1.  Months of Inventory refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.  Values below 4.0 are said to be a seller’s market and means prices should be rising, and they certainly have been!

Days on Market are down to an average of 10 days!  That is lowest number I can ever recall!  This is a testament to the sales strategy widely used in February of holding offer dates a few days after listing a property.  And it was a very successful strategy.   This is another illustration of Februarys very strong buying demand; even with pandemic pressures, almost all homes are selling at very fast rates.

Consecutive record or near record average sale prices and low inventory are great for home sellers, but buyers have not had it easy over the last many months.  I am concerned because these record figures are unsustainable.  The questions is: now that we are starting to see the numbers trend the other way, will it continue?  And will it be a soft transition or a hard crash?  The last correction in 2017 was initiated by government intervention.  What is causing it this time?  Coming spring weather encouraging people to sell?  FOMO for sellers who now want to cash in on the high prices?  Vaccine hopes enabling more people to sell their home? Or vaccine relief that slows the exodus from the city and lowers demand in our area?

If you’ve been considering selling, don’t delay.  Don’t wait until spring.  If you have been trying to buy or waiting to buy, things appear to be getting easier.  If you’re buying for the long term, you may be buying at a high point, but over the long run it won’t matter.  If you’re planning on buying and selling again soon ie flipping, now is a risky time to buy.

I have been tracking and sharing weekly sales statistic on my social media and blog because things are changing so quickly.

Stay safe and be well everyone. 

Weekly Snapshot- February, 2021

Year- Over- Year- February, 2021

13 Month Update- February, 2021