05/29/2024
Comparing this year to the last couple of years can feel confusing. Those years were what we call 'unicorn' years—rare and almost impossible to replicate.
Why Were They Unicorn Years?
Think back to the pandemic. Suddenly, everyone needed more space—a home office, a bigger backyard. Demand for homes shot through the roof.
Here’s what happened:
Skyrocketing Demand: Everyone, including first-time and second-home buyers, wanted a change.
Historic Mortgage Rates: Rates dropped to all-time lows, making buying a home super attractive.
Foreclosure Forbearance: Plans nearly wiped out foreclosures, helping many stay in their homes.
Home Value Surge: Home prices appreciated like never before.
These were extraordinary conditions that created a unique, almost magical market—a true ‘unicorn’ period.
What’s Happening Now?
Things are calming down and getting back to normal. Here’s what you need to know:
Buyer Demand
Despite what you might read in the headlines, there are still plenty of buyers out there. We’re selling over 10,000 houses daily in the U.S. While demand isn’t as frenzied as during the unicorn years, it’s still strong compared to typical years (2017-2019). Showing-Time data shows that buyers are still very active!
Home Prices
The home price spikes of 2020 and 2021 were exceptional. Now, we’re seeing more typical increases in home values. After a slight dip in late 2022, the market has returned to normal appreciation levels in early 2024, according to Fannie Mae.
Foreclosures
Yes, foreclosure filings have increased compared to the past few years. But remember, those years had historically low rates due to a a temporary suspension. We’re simply returning to the normal levels seen from 2017-2019.
You’ll likely see some unsettling headlines about the housing market this year. Many of these will compare today’s market to the unicorn years, which isn’t fair or accurate.
If you’re thinking about buying or selling, or if you have any questions, let’s talk! I’m here to help you make informed decisions and find the best opportunities in today’s market.
