January Real Estate Update
2020 was an interesting year in real estate for Abilene, but not a bad one. We saw record breaking low mortgage rates, buyer activity that remained extremely strong, and housing prices that rose throughout the year. While the average price compared to last year looks high, we've seen a stable average sales price since the end of the 3rd quarter and we do not expect any large changes through 2021. The most concerning factor remains the amount of available inventory. Simply put it's far too low across the board, and even more so in high demand price ranges of $150,000-$225,000 that drives close to half of the market demand. If you have a well maintained house under $250,000 there has hardly been a better time to try and sell. However, finding a house to move into can and will be a challenge. The most difficult piece of the home buying process right now is simply finding a house that you want to buy and we expect that to continue for at least the first half of 2021.
Looking into 2021 there is a lot of positive news on the horizon. Vaccines are rolling out, political uncertainty is behind us, and more stimulus is on the way. We expect all of these factors to combine for an inventory recovery sometime late in Q2 and a return to a more healthy housing market with prices remaining similar to what we see now. As people get back to work and increase their disposable income all projections point to a strong commercial real estate recovery and retail/restaurant business recovery. We expect this to take longer than housing however, and might not see it until close to the end of the year.
For BHGRE Senter, REALTORS we are settling into our new technology and franchise partnership. Our agents are receiving training on a weekly basis to address market conditions, marketing, and discounts and benefits to bring to our clients. With more people than ever jumping into the real estate industry as a "side job" we remain dedicated to you as full-time professionals and one of the longest standing real estate firms in Abilene. We saw our own struggles in dealing with COVID-19 and keeping our REALTORS safe, but it was still a good year. We were fortunate to continue to give back and support local non-profits and initiatives as we always have. Things are looking great for 2021, and we can't wait to help you in your next real estate transaction!