The truth about the misleading information circulating about the market.

Media headlines about the real estate market have been causing concern for many people. However, it's important to recognize that these headlines can often be misleading. Today I’m taking a closer look at the real facts and data to put things into perspective.

During the years 2020 and 2021, the housing market experienced a unique phenomenon that we refer to as the "unicorn years." These years were characterized by a combination of low mortgage rates and high buyer demand, which led to a frenzy of activity and drove prices to unprecedented levels.

Now that the market has returned to a more normal state, some national headlines are claiming that the market is crashing. However, these headlines are comparing the wrong data. When we compare the current market to the period before the unicorn years, we can see a different picture.

For example, one headline suggested that home appreciation has crashed. However, if we look at the graph at 0:57 in the video, we can see that home price appreciation has increased. While it's true that home prices have come down from the levels seen during the unicorn years, they are still higher than they were in the normal market before that period.

“The housing market experienced a unique phenomenon in 2020 and 2021.”

Another misleading headline example claimed that there are way more homes for sale now. Once again, when we consider the unicorn years, the number of homes for sale is still significantly lower than what is considered normal in the market.

Looking at the available data, we can see that the number of homes available for sale has been steadily decreasing since 2017. While there has been an increase in available homes compared to the last two years, the reality is that we still don't have enough inventory to meet the current buyer demand.

In our last misleading headline example, they predicted a wave of foreclosures hitting the market. It's important to note that there may be more foreclosures now compared to the unicorn years, but this was due to the moratorium on foreclosures during the pandemic. This helped homeowners keep their homes and build equity during a period of uncertainty.

When we look at the graph at 2:03 in the video, we can see that the number of foreclosures is still significantly lower than in a normal market. In fact, homeowners currently have more equity than at any point in US history. Therefore, the idea of a "wave" or "flood" of foreclosed homes hitting the market is not supported by the data.

Headlines can be misleading, and it's crucial to understand the real facts and data to get an accurate understanding of what's happening in the real estate market. If you have concerns or would like to discuss the current market in the Richmond area, feel free to call or email my team of trusted industry experts. We will listen to your situation, share local data, and help you create a unique exit strategy tailored to your needs. Then remember it's not the market...it's the marketing that makes the difference!