Some thoughts on the current housing market…
Comparing real estate metrics year over year can be a challenge in a normal housing market. Factors like market variability and unpredictable events can skew the comparison's accuracy and meaning.
In the past few years, the real estate landscape went through significant changes due to the pandemic. The demand for homes skyrocketed as people sought properties with home offices and spacious backyards. First-time and second-home buyers flooded the market, aided by historically low mortgage rates and foreclosure prevention measures. Home values soared to unprecedented levels, creating a market that was highly sought after but difficult to find—a true "unicorn" year.
However, things are now returning to normal, and the unicorn years have passed. Comparing today's market to those years doesn't make sense. Here are three examples:
Buyer Demand: Despite headlines suggesting a decline, the United States still sees over 10,000 house sales daily. While buyer demand is lower than during the unicorn years, it remains robust compared to pre-unicorn years (2017-2019).
Home Prices: Today's home price increases can't be compared to the extraordinary appreciation of 2020 and 2021. Instead, they align with more typical increases observed in the years before the unicorn era (2017-2019).
Foreclosures: While foreclosure filings may show percentage increases, these numbers should be viewed in context. The recent increases are a rebound from historically low foreclosure rates. Comparing the current figures to the normal filings of 2017-2019 provides a more accurate perspective.
In a year where unsettling headlines about the housing market abound, it's crucial to have an expert on your side who can provide proper perspective. Let's connect and ensure you navigate the market with confidence and clarity.
