Looking back on 2021, most would agree that we could not have anticipated what took place in the world of Real Estate this year. Buyers were blindsided by extremely low inventory and unusually high buyer demand with homes selling within days of listing often with multiple offers upwards of $100k+ over asking price. Sellers, on the other hand, delighted in the sharp increase in value of their home and many seized the opportunity to cash out on their home investment. The median home value in the country rose 25% year to date, which is record-breaking growth for one year.
In the South Bay and Palos Verdes we experienced inventory and interest rates at historic lows and buyer demand at a historic high. If these trends continue, sellers are poised for another strong year ahead. However, inflationary pressure on our economy and an uptick in interest rates are possible in the new year and these two factors have initiated a real estate correction in the past. We have experienced a consistent increase in real estate value for the past eleven years and as history shows what goes up will come down…the question is, when?
Come what may, it is an honor and privilege to get to serve our clients and offer them incomparable service and confidentiality as we help them accomplish their real estate goals.
- Steve & Ceci Watts