There’s more good news for sellers: the median existing-home price recorded its 106th straight month of year-over-year gains. The median price for all housing types reached $309,800 in December, up nearly 13 percent from December 2019.
Home sales in the Northeast accounted for the greatest increase in sales, up 4.5 percent in December compared to November, and up more than 27 percent from December of the previous year.
What’s in store for the housing market in 2021
Existing home sales should continue to rise into 2021, said NAR Chief Economist Lawrence Yun. Though mortgage rates are beginning to rise, they should remain relatively low, and other factors such as the economic stimulus and vaccine distribution should also help lift sales, he said.
Related: States with the Highest and Lowest Real Estate Prices
How can buyers participate in this market?
The record home sales may result in low or overpriced inventory in areas. So, what if you’re a buyer – particularly one seeking an investment property?
Some investors have found success looking outside of their market. For example, investors from California and elsewhere have flocked to cities including Cleveland to purchase fix-and-flip houses at significantly lower prices than they’d find in their home state, allowing them to turn a bigger profit on the sale.
Many of these investors have used an unexpected funding source – their self-directed IRA – to fund the purchase. In this seller’s market, having the ability to use IRA funds to provide an attractive all-cash offer can be a huge competitive advantage.