Patience Is the Key to Buying a Home This YearThe question many homebuyers are facing this year is, “Why is it so hard to find a house?” We’re in the ultimate sellers
Don’t Be Fooled by Remarkable Real Estate Headlines
Dated: May 3 2021
Views: 19
Don’t Be Fooled by Remarkable Real Estate Headlines
Don’t be impressed by the headlines reporting year-over-year housing numbers for the next several months (data covering March, April, May, and June). The data will most likely show eye-popping one-year increases.
While the year-over-year jumps will certainly be striking, consumers should take these numbers with a grain of salt, as the situation highlights a short-term quirk in the reporting of this data. Essentially, the increases will reflect a combination of two things: sharply lower housing numbers during last year’s virus-related market collapse and the subsequent strong rebound. This will result in what will appear to be unbelievable growth.
Let’s use single-family home sales as an example:
As the graph reveals, last spring’s buying market was anything but typical. Instead of sales increasing, they fell sharply as a result of stay-at-home orders that virtually shut the real estate industry down.
This spring’s real estate market will bounce back with more normal seasonal sales increases. The percentage increase in sales will be astronomical – not because sales have skyrocketed, but instead because they will be compared to last year’s low numbers.
Bottom Line
There are likely to be some sensational headlines about real estate over the coming months. However, don’t be fooled. The actual story is that the real estate market is finally back to normal.
Latest Blog Posts
Will the Housing Market Maintain Its Momentum?Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7%
4 Tips to Maximize the Sale of Your HouseHomeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This
Don’t Be Fooled by Remarkable Real Estate HeadlinesDon’t be impressed by the headlines reporting year-over-year housing numbers for the next several months (data covering March, April,
Charlottesville Area Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers
© BRIGHT, All Rights Reserved
