What Do Past Years Tell Us About Today’s Real Estate Market?

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Real Estate Agent with REMAX Real Estate Experts 317824

 

What Do Past Years Tell Us About Today’s Real Estate Market?

As you follow the news, you’re likely seeing headlines discussing what’s going on in today’s housing market. Chances are high that some of the more recent storylines you’ve come across mention terms like cooling or slowing when talking about where the market is headed.

But what do these terms mean? The housing market today is anything but normal, and it’s still an incredibly strong sellers’ market, especially when compared to the few years leading up to the pandemic. With that in mind, what can previous years tell us about today’s real estate market and if it’s truly slowing?

We’re Still Seeing an Above Average Number of Sales

 

You may see headlines about a drop in home sales. But are those headlines telling the full story? The most recent Existing Home Sales Report from the National Association of Realtors (NAR) does show a drop of about 2% from July to August. But the month-over-month decline doesn’t provide the full picture (see graph below):
What Do Past Years Tell Us About Today’s Real Estate Market? | Keeping Current Matters
As the graph shows, historical context is key. Today’s home sales are well ahead of some of the more normal years that led up to the health crisis. That means buyers are still in the market, which is great news if you’re planning to list your home.

 

Houses Are Selling Faster Than Usual

 

When headlines mention the market is slowing, sellers may naturally wonder if their house will sell as quickly as they’d like. According to the most recent Realtors Confidence Index from NAR, homes are still selling at record speed (see graph below):
What Do Past Years Tell Us About Today’s Real Estate Market? | Keeping Current Matters
Again, if we look back at data from previous years, we can see the average time on market  17 days –  means homes are selling faster than a normal pace.

 

Bidding Wars Are Still the Norm

 

The Realtors Confidence Index from NAR also shows a drop in the average number of offers homes are receiving in August, and many headlines may simply focus there without providing the important context (see graph below):
What Do Past Years Tell Us About Today’s Real Estate Market? | Keeping Current Matters
Again, it’s important to compare today’s market to trends from recent years. Currently, the average number of offers per listing is higher than 39 of the previous 45 months. That means the likelihood of a bidding war on your home is still high. And the number of offers your house receives can have a major influence on the final sale price.

 

So, Is the Market Slowing Down?

While there are slight declines in various month-to-month data, it’s important to keep historical context in mind when determining what’s happening in today’s market. Odeta Kushi, Deputy Chief Economist at First American, put it best recently, saying:

“It’s not the white-hot market from earlier in the year & it’s not the 2020 market benefiting from a wave of pent-up demand but make no mistake this is still a hot housing market.”

Bottom Line

Don’t let headlines make you rethink listing your home this fall. Selling today means you can still take advantage of high buyer demand, multiple offers, and a quick sale. If you’re considering selling your house, this fall is the perfect time to do so.

Source: Keeping Current Matters | The KCM Crew 10142021

Comments (1)

Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Hi Jennifer Carstensen I've been in this business since 2004 and I'm not sure there is a normal market anymore!  We have been seeing some signs of a "cooling" market too, but based on past years it's still a pretty hot market here too.  Great post!

Oct 14, 2021 12:07 PM