RED REPORT – JANUARY 2021
Middle TN Home/Condo Sales Report for January 2021.
January 2021 vs January 2020
Closing Volume = 0% NO Change
Average Closed Prices = + 17. 5% higher
Pending Volume = + 22% higher
Inventory = -37% less
Remember, last January and February were great months for home sales and maybe one of the best starts to a year our market has seen. Covid hurt April/May closings and then by Summer we were off to the races making up for all the lost sales in April/May with record breaking sales volumes. For this recent January to be the same as last January is strong and a 22% increase in Pendings is amazingly strong, especially to see these high sales volumes with the decreased inventories.
Inventories(homes active for sale) are sitting around 1-2 months supply which is way too low for a healthy market. Most would argue we always have around a month of inventory that is considered “junk”(properties no one really wants to buy). My point is the inventory is even lower that the numbers show.
I feel these low inventories will keep our sales volumes lower than they would be if we had an adequate supply to choose from so my forecast for 2021 is all depending on inventory levels. The more homes list for sale the more closings we will see. Hopefully the new homes going up will help increase supply to help with some of the demand, but it will take some time. We’ll keep a close watch on homes sales and report back to you next months.
*Reminder: Pendings are new contracts that are waiting to be closed in the near future, usually 4-6 weeks out.