Don’t Be Fooled by Remarkable Real Estate Headlines

Dated: May 3 2021

Views: 56

Don’t Be Fooled by Remarkable Real Estate Headlines

Don’t Be Fooled by Remarkable Real Estate Headlines | MyKCM

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:Don’t Be Fooled by Remarkable Real Estate Headlines | MyKCMAs 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

Why Experts Say the Housing Market Won’t Crash

Why Experts Say the Housing Market Won’t Crash Some HighlightsMany people remember the housing crash in 2008, but experts say today’s market is fundamentally different in

Read More

Is the Shifting Market a Challenge or an Opportunity for Homebuyers?

Is the Shifting Market a Challenge or an Opportunity for Homebuyers?If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable

Read More

Real Estate Consistently Voted Best Investment

Real Estate Consistently Voted Best Investment Some HighlightsBased on a recent Gallup poll, real estate has been rated the best long-term investment for nine years in a row

Read More

Things To Avoid After Applying for a Home Loan

Things To Avoid After Applying for a Home LoanOnce you’ve applied for a mortgage to buy a home, there are some key things to keep in mind. While it’s exciting to start thinking

Read More