We are finally into the last month of 2020 and few of us are leaving this year unscathed in some way, shape or form. If nothing else, we’re just exhausted.
I am grieving people lost this year. My grandmother died over the summer, so many friendships have changed and peer relationships have ended in divorce. So many of us have experienced job loss or a change in work habits. Our kids didn’t have traditional school. Even my business Christmas cards are different this year. For our personal family Christmas cards, the list is shorter.
Yet I’m thankful.
I hope for a lot of you, amid all this, some opportunity has been presented this year, and you were able to take it! That’s what I have in mind every time I write one of these blog posts: Arming you with information that you can use when the time is right for you, putting you and your family in the best position possible to prosper.
As we approach a new year, there is always uncertainty about what lies around the corner. This holds especially true in 2020 Real Estate.
Market Crash Speculation
To be completely honest, inner-industry chatter about a potential market crash is circulating, though not widely believed. Some economists are predicting a major depression lies ahead for our country. A couple key indicators being watched is if unemployment remains high and whether we have another lockdown, shutting down businesses for a second blow of financial strain. There is also a lot of breath-holding over a potential wave of foreclosures as the terms of forbearance expire.
At this point, though, the worst we’re looking at in Grassland is having less of a Seller’s market. Realtor.com®’s 2021 housing forecast predicts most of the US will continue to see our home prices increase nationwide throughout 2021. At the same time, mortgage interest rates may start going up again toward the last half of 2021. This 1-2 punch would make homes even less affordable for Buyers, calling for higher monthly mortgage rates and a need for increased buying power, while the rate of wage increases aren’t keeping up.
“We expect affordability to become a bigger challenge. It’s going to make [housing] more expensive,” says realtor.com Chief Economist Danielle Hale.
Here in Grassland, we will also see more homes hitting the market toward the last half of 2021 due to new construction being completed, as builders catch up with demand. So what we can realistically expect is fewer qualified Buyers and more homes For Sale in 2021.
So with a realistic potential of more homes For Sale combined with fewer qualified Buyers, it may be that we won’t see as much of a frenzy in 2021 as we’ve seen this year.
Let’s compare 2019 to 2020 for Grassland home sales through the first 11 months. This will give you an idea of what a Real Estate “frenzy” looks like on paper.
January 1 – November 30, 2019:
- 444 home sales
- Median home price: $556,810
- Median sales price to list price ratio: 98.92% (homes were selling at a slight discount from list price)
- Median days on Market: 12
January 1 – November 30, 2020:
- 418 home sales (6% lower than 2019)
- Median home price: $610,000 (9% higher than 2019)
- Median sales price to list price ratio: 100% (homes are selling for 100% of their list price)
- Median days on Market: 4 (homes are selling more than a week faster)
This data shows us that for the first 11 months of 2020, we had fewer home sales and those homes sold for more money, got asking price and sold faster than in the first 11 months of 2019 due to the basic supply and demand rules (fewer homes on the market than Buyers.)
Looking specifically at Grassland’s November numbers, comparing year-over-year, the difference in one month is even more dramatic.
November 1 – 30, 2019:
- 36 home sales
- Median home price: $539,500
- Median sales price to list price ratio: 98.56% (homes were selling at a slight discount from list price)
- Median days on market: 26
November 1 – 30, 2020:
- 34 home sales (2 fewer than November 2019)
- Median home price: $673,750 (20% higher than November 2019!!!)
- Median sales price to list price ratio: 100% (homes are selling for 100% of their list price)
- Median days on market: 2 (3+ weeks difference before going Under Contract!)
Grassland’s November 2020 Homes
It’s always interesting to see the most and least expensive homes that sold in our area. It gives us an idea of pricing, availability, demand and where the market trends are heading.
This townhouse in Brentwood Pointe is Grassland’s most affordable home in November 2020. It’s a 1,088 square foot townhome in Brentwood Pointe.
It’s got 2 bathrooms (both on second level) and 1.5 baths. It sold the first day on market for $235,000.
It hit the market in move-in ready condition and has neutral pain colors throughout. It doesn’t feature some of the updates and finishes that you’d expect in many of our higher priced homes, but this is still a great starter home in our area — and Brentwood Pointe has many homes in this price range selling every month. This is especially hopeful for families looking to move here with a lower budget. This is the kind of home you’ll typically find priced below $300,000 in the Grassland middle school zone.
Our highest priced home sold in November 2020 was in Laurelbrooke. Check out this estate on Edgewater Court:
This 7,400sf home Closed November 9, 2020 and went Under Contract after 74 days on market. It features 6 bedrooms and 6 full baths plus 2 half baths. Part of this square footage includes an in-law suite on the main level, as well as a full finished basement.
It’s unusual to see a home around here listed in July sit as long as it did before going Under Contract — even priced as high as $1.9 million dollars.
This home went through 2 price drops, down by $200,000 from original list price before settling at $1.7 million dollars. In the MLS Listing, it said this house is “PRICED BELOW APPRAISAL!!” (Hint: Appraisers are generally not good at assigning prices to homes for market because they’re not out every day with Buyers, observing their tastes, wants and needs.)
This home was built in 2002 and I suspect some of the outdated finishes have something to do with its struggle to sell quicker. However, it’s in a very high-demand neighborhood for this price point, in a great location, looks very well maintained and has some amazing outdoor upgrades as well.
Of our 34 Grassland homes that sold during November 2020, five of them closed above a million dollars. They were each in different neighborhoods: Monticello, Deerfield, Lodge, Temple Hills and this one in Laurelbrooke.
Last year, in November 2019, our highest-priced home sold was on Moran Road, and settled at $3,900,000.
We had 18 neighborhoods with sales in November 2020. Two of the 34 Grassland homes sold in November were not in neighborhoods. Click the link for each neighborhood to see the homes that sold:
- Brentwood Pointe: $207 median price per sq ft / 97.37% list-to-sales price ratio / 3 days on mkt
- River Rest: $175 median price per sq ft / 100% list-to-sales price ratio / 0 days on mkt
- Meadowgreen Acres: $257 median price per sq ft / 102.58% list-to-sales price ratio / 3 days on mkt
- Fieldstone Farms: $207 median price per sq ft / 100.64% list-to-sales price ratio / 1 day on mkt
- Berry Chapel Heights: $261 median price per sq ft / 102.5% list-to-sales price ratio / 0 days on mkt
- Gateway Village: $182 median price per sq ft / 98.44% list-to-sales price ratio / 9 days on mkt
- Cottonwood: $209 median price per sq ft / 100.02% list-to-sales price ratio / 0 days on mkt
- Forest Home Farms: $240 median price per sq ft / 98.23% list-to-sales price ratio / 12 days on mkt
- Timberline: $195 median price per sq ft / 101.94% list-to-sales price ratio / 2 days on mkt
- Montpier Farms: $265 median price per sq ft / 97.01% list-to-sales price ratio / 9 days on mkt
- Temple Hills: $198 median price per sq ft / 100% list-to-sales price ratio / 4 days on mkt
- Stonebridge Park: $195 median price per sq ft / 100% list-to-sales price ratio / 2 days on mkt
- Horseshoe Bend: $199 median price per sq ft / 103.74% list-to-sales price ratio / 1 day on mkt
- River Landing: $231 median price per sq ft / 103.2% list-to-sales price ratio / 2 days on mkt
- Monticello: $242 median price per sq ft / 100% list-to-sales price ratio / 1 day on mkt
- Deerfield: $313 median price per sq ft / 89.92% list-to-sales price ratio / 6 days on mkt
- Lodge: $264 median price per sq ft / 96.77% list-to-sales price ratio / 27 days on mkt
- Laurelbrooke: $229 median price per sq ft / 94.71% list-to-sales price ratio / 74 days on mkt
We’re Doing Pretty Well!
Seeing a 20% price increase here in Grassland between November 2019 to November 2020 is absolutely incredible. And though we likely won’t see double-digit increases in 2021, we’re still poised to perform pretty well.
I’ve been saying this to anyone who asks: This is a time of opportunity.
Those who remember the 2008 Recession may recall the amount of Real Estate wealth that came from it. And while the circumstances of this year have been different, we are in another time similar to that level of Real Estate opportunity. In 10 years, it’ll be really clear who sold and who bought right now– even in December.
I just sold a home today and the Seller said to me, “I can’t believe we did it. We sold our home in December!” We not only sold their home, but sold it for a record-high price in that part of the neighborhood with no inspection repairs or closing cost concessions. The sale wasn’t contingent on Appraisal or another home sale either. Real Estate in Grassland is a year-round business.
And while so many events, jobs and people haven’t escaped this year unscathed… Real Estate, so far, has. The biggest question is: How long will this last?
If you’re thinking of selling or buying a home, I’m happy to give you honest advice. I’m a Grassland area resident and I’m a Platinum Award-winning Williamson County REALTOR® ranking in the top 2%. I have been featured on TV and my success is the topic of an article in the July 2020 edition of Nashville Real Producers magazine. But most importantly, I specialize in helping my friends and neighbors buy and sell homes!