Time to crunch some numbers. I always try to give you a variety of resources when presenting market reports. This month, I’m using data collected from Land Title Guarantee Company along with some stats from my MLS program called InfoSparks.
You know the old saying, “There are lies, damned lies and statistics,” allegedly made famous by Mark Twain. The elusiveness of statistics in a small real estate market, like Summit County, means that a single sale, whether large or small, can skew the averages. I will always tell you the truth (no lies or damned lies) about the statistics and point out where some numbers might be misrepresented because of outlier sales.
Increase in Residential Real Estate Values in Summit County
Spoiler alert: All the statistics point to a 20% increase in Summit County residential real estate values in the last year.
This chart provides the 3 second view of the appreciation in our market over the last 14 years.
From 2020 to 2021, the average single family home price in Summit County jumped from $1,386,525 to $1,664,382, a 20% jump. Multi family properties went from $606,487 in 2020 to $723,298 in 2021 (so far). That’s an increase of 19.26%. Basically – if you were shopping in 2020 and are still shopping in 2021, prices have gone up around 20%.
Looking at sales volume and number of transactions, this chart shows how 2020 and 2021 are up at least 20% in number of transactions and over 50% in increased dollar volume looking at year to date data for 2021. What does that mean?
It means that even though we are selling 20% more properties than we ever have, the demand is so high, that we are seeing 20% increases in pricing and almost 50% more dollar volume than in the past. Whew! If you are a buyer, you probably already know how competitive it is.
These charts help to put it in perspective.
And since I don’t always trust “statistics,” I ran some MEDIAN numbers through my MLS.
This is a three year median sales price chart using rolling 12 month data. In January 2018, the median price for all residential properties in Summit County was $559,950. In October 2021, the same statistic was $800,000. That’s an increase of 42.87% in three years and 10 months. The median sales price in October 2020 was $664,000, resulting in a 20.48% jump in just one year. There is that number again – 20%. Looks like the statistics aren’t telling lies, or even damned lies this month!
Reading the Tea Leaves
I’m often asked what is going to happen with prices? Will they soften? Will the market go down? Friends, I don’t see that happening anytime soon. I don’t know that we can expect another 20% appreciation year, but I predict we could see 10%. With the level of demand from across the country, our properties will hold their value and the market will remain strong.
And then there’s the “I” word: inflation. Who knows what is going to happen with inflation. But we do know that owning real estate is a great hedge against inflation.
As always, let me know if I can provide a market analysis for your Summit County property. Or, if you want to dig deeper into a specific market, I’m happy to help you run more granular numbers.