If you thought that January was going to be like every other January, which is traditionally slow, you would be wrong. Just like this past December, January saw an increase in sales of 20% from January 2020.
Additionally, buyers are being very aggressive. In January we saw 19% of the sales go for $50k or more above the asking price, a trend that has been steadily increasing since June, which saw only 2%. It will be an interesting indicator to watch in the coming months.
Not surprisingly, a “newish” trend has been gaining popularity. Not as wildly as our American friends but Reverse Mortgages have been gaining ground given the increase in home values and decrease in interest rates. Available to homeowners over the age of 55, it is of no surprise that some are using equity in their homes to help out the kids with down payments or for the elderly to “age in place” instead of the risk of long term care homes. These types of loans need to be used with a huge caution flag.
It’s a new year and I’m certain there will continue to be trends which we have never seen before. I can’t wait to see what 2021 has to bring. Give me a call anytime to discuss your specific position and whether it the right time to buyer or sell!