2020 Comes to A Close
2020 has been a year like no other. The pandemic changed the way we live and the way we interact with others. Financially it has affected people in different ways. Some people have thrived while others have fallen into financial distress.
The latter effect led many to wonder what would happen to the real estate market. Surprisingly, it did not, or perhaps, I can say, has not negatively affected the real estate market as many people anticipated, at least not yet. That could change as moratoriums are lifted and forbearances come due. But as I mentioned in my article Is Another Foreclosure Wave Coming? only time will tell. For now, the numbers show that the real estate market, especially in Oakland Park, is not only resilient but thriving.
Oakland Park's Real Estate Market Continues To Thrive
A look at the number of overall sales in Oakland Park show that sales are up significantly. Combined single family home and condo sales are up 12. A closer look reveals that this rise is mostly due to single family homes sales that are up 24%! Condo sales are down by 1%, but this is not a significant enough decrease to merit any sort of concern.
The value of homes has also gone up significantly compared to the last quarter of 2019. Combined single family home and condo sales average value is up 18% and the median value is up 23%. Single family home sales average value is up 13% and median value is up 20%! Condo sales average value is up 16% and the median value is up 14%.
See the table below for a summary of the statistics that were compiled from the MLS.
Statistics
Fourth Quarter 2019
215 Total Sales
Single Family Homes and Condo Sales Stats
109 Single Family Home Sales
106 Condo Sales
Fourth Quarter 2020
24o Total Sales
Single Family Homes and Condo Sales Stats
135 Total Single Family Home Sales
105 Total Condo Sales
Continued Cautious Optimism Moving Forward
As the value of homes continue to rise, as in my 3rd quarter report for 2020, I urge cautious optimism. The reason for this is that we are still battling a pandemic and, as a result, President Biden has extended the protections given to homeowners under his predecessor. The foreclosure moratorium will remain in place through June 30, 2021 and homeowners whose forbearance started on or before June 30 of last year have the option to extend their forbearance period up to six more months.
This may provide the needed relief many homeowner require in order to restructure their loans or come up with a plan B. But at some point the piper is going to need to be paid and only when that bill comes will it be evident how many homeowners may need to consider other options besides loan modifications. Some may need to sell in order to relocate or downsize, some may need to rent their homes and temporarily move in with family, some many need short sell and some may need to look at even more creative options.
So while it is great that homeowners are being provided relief, the effect of this relief on our economy cannot yet be known. So in all things real estate proceed with caution.
