Understanding the Current Real Estate Market

Share this post on:

Comparing real estate metrics from recent years to the current market can be challenging and may not provide an accurate assessment. The unprecedented events of the past few years, such as the pandemic, have had a profound impact on the real estate landscape, making comparisons to previous years less meaningful. Here’s why:

Unique Market Conditions: The past few years saw a surge in demand for homes due to factors like the pandemic-induced need for larger spaces and low mortgage rates. These conditions created an exceptional market environment characterized by high demand, low foreclosure rates, and rapid home value appreciation.

Return to Normalcy: The current market is gradually returning to more typical conditions. The extraordinary circumstances of the “unicorn” years are subsiding, and the market is stabilizing.

Buyer Demand: While headlines may suggest a decline in buyer demand, it’s essential to consider the context. Despite any perceived decrease, there is still a significant number of homes being sold daily in the United States. Comparing the current market to more normal years, such as 2017-2019, reveals that buyer activity remains robust.

Home Prices: The historic appreciation rates witnessed in 2020 and 2021 cannot be directly compared to the current market. Those years had exceptional price increases, whereas the current market is returning to more typical levels of home value appreciation. Monthly data from Fannie Mae indicates a return to normal appreciation in the first quarter of this year.

Foreclosures: Recent headlines highlighting an increase in foreclosure filings should be viewed in perspective. While the percentages may be higher, they are increases from historically low foreclosure rates. Comparing the current numbers to the more standard foreclosure filings from 2017-2019 provides a better understanding of the situation.

It’s crucial to approach the current real estate market with an informed perspective and avoid making inappropriate comparisons to the exceptional conditions of the past few years. Consulting with a real estate expert can help you navigate the market and gain a proper understanding of the current dynamics.

Bottom Line: Don’t be swayed by unsettling headlines comparing the current market to the “unicorn” years. Seek guidance from a knowledgeable professional who can provide you with accurate insights and help you keep everything in proper perspective.

Sell Your Home with Confidence – Partner with Us for a Successful Sale!

Dowell Family Team
Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

Author: Dowell Family Team

Berkshire Hathaway HomeServices Kansas City Realty team serving the residential needs if Kansas Citian’s including Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee and surrounding Johnson County cities.

View all posts by Dowell Family Team >

Leave a Reply

Your email address will not be published. Required fields are marked *