Article content continued
According to the local association, the average cost of a home in 2020 was $463,993, an increase of 17.4 per cent over 2019. In December, that cost jumped to $504,712. That’s 18.8 per cent higher than December 2019.
Clancy said that in the past three years, the increase has been roughly 10 per cent, but prior to 2017 that number hovered around 3.5 to four per cent.
“So if you think about it that way, we’re up 17.4 per cent. It’s pretty significant,” Clancy said. “It’s obviously great for sellers, but tough for buyers.”
The massive jump in the cost of a home drove the total dollar value of all home sales in December 2020 to $125.2 million, 84.1 per cent over December 2019.
While historically low interest rates have encouraged borrowing and therefore sales, Andrew said the increase has been caused by low supply. He attributes that low supply to sellers not being comfortable letting strangers into their homes.
“Right now, the listings are the lowest they’ve been in three decades. It’s unbelievable,” Andrew said. “That’s what is driving up the prices. That’s why so many houses are being sold for more than asking price, because there’s just no supply out there.
“Normally around this time of year, there’ll be about six months of inventory. Right now, it’s about 1.2. It’s a total seller’s market. You could put your house on the market right now, and unless it’s garbage, it’s going to sell really quickly.”
Clancy said that, and agents pricing houses too low, has caused homes to sell for $20,000, $30,000, even $100,000 over asking price.
