Real estate volume for the first quarter of 2021 in Clinton, Essex and Franklin counties was eye popping to say the least with record volumes in all three counties. The bull market that began toward the end of 2Q2020 propelled through the end of last year and has clearly continued into 2021.
The trends of pent-up demand, low inventory and low interest rates are the most likely causes of the market run up but there are other factors at play. As I have reported in past updates, the north country is seeing an uptick in buyers from outside our area who are relocating permanently or purchasing vacation homes. This phenomenon is especially obvious in the Lake Placid region, but the Champlain Valley is experiencing growth with these buyer types as well. The jury is out as to how long this trend will last but our prediction is buyers from larger population centers will seek areas like ours as long as the pandemic remains a threat. We are now tracking the prevalence of sales to people who purchase homes with non-north country zip codes and have added the statistic to the sales volume chart that is included with our update.
Another contributing factor to the market run up is people’s savings have increased during 2020 which was caused partly by the pandemic and also the federal government pumping trillions of dollars into the economy. Yes, the Fed “printed money” and handed a good share of it over to our citizens which has enabled many to be in a better position to buy a home.
I expect our regional market will continue to flourish for at least the next two quarters and more than likely through year end. The only variables we see having a negative impact are low inventory and inflation which may cause mortgage rates to increase. The assumption is being made that we will overcome the pandemic in 2021 and return to normalcy.
If you are in the market to buy or sell a home or another type of real estate, please contact us. Evaluating the market at this time is tricky because of how it has performed so you will be well served by engaging with one of our real estate experts to assist you. Do not hesitate to call our office for information, our goal is always to build relationships and we look forward to providing you outstanding service.