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.
Hello, my name is Steve Schappert.
I am the Connecticut Real Estate Broker. I treat people honestly, look them in the eye and ask for their trust. Then day after day I earn it. All the fan fair and hype doesn’t sell houses, listening sells houses. Listening to your client’s wants and needs and helping them make intelligent decisions based on enough solid data that allows the heart to make emotional decisions. Call or text my cell 24/7 203-994-3950 or email me at Broker@CTREB.com. or visit our Website at https://connecticutrealestate.online