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Real estate in 2021 was different for sellers and buyers.  2020 made the real estate market pause, wondering what next after the lockdowns caused job losses and altered the restaurant, and brick and mortar retail industry forever.  Let’s look at the numbers for Treasure Island, Surfside, Freeport zip code of 77541 and see the impact of these events on the local real estate market.

In 2020, prior to the pandemic, sellers were ready to sell. The number of active listings peaked compared to the last 5 years.  The world changed and the number of active listings dropped to a 5 year low and leveled off at the end of 2020 and we rang in 2021.  Homeowners in the 77541 zip code decided they loved where we lived and vacation rental and occupancy rates increased in the last 8 months, and the number of homes listed for sale dropped.  In October, the number of active listings increased to 2017 levels.   Buyers were looking to buy and few homes were available.  New construction slowing in 2020 and the price of lumber and the reduction of supply out of Louisiana due to weather events impacting lumber supply further created The Law of Supply and Demand impacting the number of homes available and the increased in price of the homes that were be sold.

 

The sold sales pricing in the 77541 zip code this year has been a wild ride.  Let’s discuss the actual numbers first.  77541 zip code is a mixture of price points from 80,000 to $800,000, so reviewing the overall trend tells the tale versus a monthly review.   The sales price or sold price usually is in arrears and numbers are pulled AFTER the property has closed/sold, and ownership has been transferred.  The sales price in January 2021, is probably from properties that went under contract in December 2020.

As you can see from the chart taken from Har.Com, with the lowest number of listings in 5 years, pressure hit the sales price.  The first quarter of 2021 had sales prices hitting their peak and continued strong thru summer.  Toward the end of summer and fall the sales price begins to level off, but still higher than previous years.

The next couple of months will be interesting to see how 2021 closes, with unknowns such as tax laws changes, surrounding industries continuing to receive political and social pressure to evolve, and the lack of availability of common products like cars… (who knew car sales impact 3% of the global economy), may impact the economic conditions and home sales.

Either way, it looks like onward and upwards for Real Estate this year!

Contact me if you are looking to buy or sell real estate on the gulf coast, or if you are curious about what your local market is doing, let’s look at the numbers.  979.341.9293

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