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Can 2021 out perform 2020? Ask me in October…..

The year 2020 set records across most segments and will be a hard act to follow, but 2021 has started off incredibly strong. After two months, 2021 is easily outpacing last year over the same time period. Through February, 2021 generated $117 million in total sales on 62 transactions versus $92 million on 25 transactions over the same period last year. Notably, $200 million in properties were under contract as of the end of February versus $60 million last year.

For context remember that 2020 can be broken into three parts:

Part 1 – January and February – Pre Pandemic – Strong Sales
Part 2 – March through June – Lockdown – Minimal Sales
Part 3 – July through December – Pandemic Real Estate Rush – Record Breaking Sales
Because of the record low level of inventories, the only reasonable way for 2021 to match 2020 in terms of total sales volume is for 2021 to sufficiently outproduce 2020 through the first six months and to be able to withstand being outproduced by 2020 in the final six months. Given current inventory levels, it is unreasonable to project that 2021 could match 2020 over the last six months of the year.