The Unicorns have Galloped away from Today’s Real Estate Market

Comparing Markets

When it comes to analyzing real estate metrics, comparing one year to the next can be a challenging process. This is due to the constant changes in the marketplace and other unforeseen events that can lead to unpredictable outcomes. Comparing this year's numbers with those from the last two 'unicorn' years -- which refer to a market that is highly desired yet rarely achievable -- is essentially useless. The pandemic has brought about a massive shift in the real estate market over the last few years. There has been an influx of first-time buyers and second-home buyers, coupled with historically low mortgage rates. Additionally, due to government forbearance plans, foreclosures have all but disappeared. All of these factors combined have caused home values to skyrocket at unprecedented levels, making it almost impossible for some buyers to find what they're looking for. Now, things are getting back to normal and this 'unicorn' market is fading away. To demonstrate why trying to compare today's market with those of 2020 and 2021 is illogical, here are three examples:

Buyer Demand

Though headlines may make it seem like there isn't much interest in buying homes right now, data from ShowingTime reveals that buyer activity remains strong when compared to more typical years like 2017-2019.

Home Prices

According to Freddie Mac , both 2020 and 2021 saw dramatic increases in home value appreciation; however, when compared with previous 'normal' years between 2017-2019, Fannie Mae data shows us that we're returning back towards more traditional levels of appreciation - though there was still some minimal depreciation during the second half of 2022.

Foreclosures

We've seen some alarming numbers regarding foreclosure filings lately; however when taking into account ATTOM property data from 2017-2019 - which had historically low numbers - it's easy to see how current figures represent an increase rather than a crisis situation.

In Conclusion

At its core, this illustrates why it's important not to get caught up in sensationalized headlines regarding today's real estate market - especially if they involve comparisons with 2020 or 2021. If you would like access to an expert who can help you make sense of everything and keep everything in proper perspective while house hunting please don't hesitate to reach out award-winning Premier Soothby’s realtor Dianne Anderson today.

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