Weekly Special | January 25, 2021

How Good Was The 2020 Housing Market?

So just how good was the housing market in 2020? The graph above tells us everything we need to answer the question.

It ranks each home price segment from 1 to 18 based upon how well 2020 performed (with a rank of “1” if 2020 had the most home sales down to “18” if 2020 had the fewest number of homes sold of all 18 years).

It’s important to understand that each price segment includes all home sales from that price and higher, all the way to the most expensive home sale in 2020.

So the easiest way to read this graph is from the bottom up.

2020 was a very strong year. We can see homes priced more than $1M enjoyed the best year ever (they ranked #1). The same is true for all homes priced in to top 1%, as well as all homes priced all the way down to $200K.

Simply put, 2020 was the best year on record, not just for luxury homes, but for all homes priced above $200K. So what do we expect in 2021?

If mortgage interest rates stay low and builders produce more homes, we’ll see 2021 outperform 2020 and post “1s” just as you see above.

The original one-page Weekly Special PDF is still available.