Today's Real Estate Market: The Unicorns Have Galloped Off
/When it comes to comparing real estate metrics from year to year, it can be challenging in a normal housing market -- and the last few years have been anything but normal. The variability in the market can make the comparisons less meaningful or accurate, as unpredictable events can (and did!) have a significant impact on the circumstances and outcomes being compared.
In the past few years, the real estate market experienced significant changes due to the pandemic. The demand for homes skyrocketed as people sought their own space, including a home office and a spacious backyard. First-time and second-home buyers flooded the market, and historically low mortgage rates reached even lower levels. Additionally, the forbearance plan helped prevent foreclosures, and home values saw unprecedented appreciation levels. It truly was a market that was "greatly desired but difficult or impossible to find" - aka, a 'unicorn' year.
However, things are now returning to normal, and the 'unicorns' have galloped off; comparing today's market to those years no longer makes sense. Here are three key examples:
It's essential to approach the housing market headlines with caution this year. Many of these headlines make inappropriate comparisons to the 'unicorn' years. As your real estate professionals, we're here to help you navigate through the market and provide you with the proper perspective!